Kim Ho-joong, 5 billion won 'money cushion' in prison = Was the fake performance? Actual company value halved [Star Issue]

*This content was translated by AI.

Contrary to claims that the value of the shares of singer Kim Ho-joong's agency, who is serving a sentence for drunk driving and hit-and-run, amounts to 5 billion won, actual public disclosure documents reveal financial conditions that directly contradict this assertion.

According to the Financial Supervisory Service's electronic disclosure system on the 23rd, Art M&C (formerly Saenggak Entertainment) reported last year's revenue at approximately 4.13 billion won and a net loss of 2.73 billion won. This represents a significant decrease compared to 2024 revenue of approximately 18.6 billion won.

The financial condition has also deteriorated significantly. Retained earnings, which stood at approximately 11.6 billion won in early 2024, declined due to consecutive net losses in 2024 and 2025, while total capital decreased from approximately 6.3 billion won in 2024 to approximately 3.6 billion won as of the end of 2025.

Given that the company's total capital is approximately 3.6 billion won, critics argue that the claim that Kim Ho-joong's 7.43% stake is worth 5 billion won lacks sufficient basis.

Earlier, on the 22nd, Sports Kyunghyang reported that Art M&C stated Kim Ho-joong holds a 7.43% stake in the company, estimated to be worth approximately 5 billion won. If this claim holds true, Kim Ho-joong would be sitting on a multi-billion won 'money cushion' even while incarcerated.

Art M&C reportedly explained that it raised the company's corporate valuation through aggressive mergers and acquisitions (M&A) and offset 'artist risk' by diversifying its business structure, indicating that the current corporate valuation is trending higher than before the Kim Ho-joong controversy.

However, actual financial indicators confirmed through the electronic disclosure system show a significant gap from these explanations, fueling ongoing controversy.

Meanwhile, Kim Ho-joong was brought to trial on charges of driving under the influence and causing a collision with a taxi before fleeing on the road in Apgujeong-dong, Gangnam-gu, Seoul, around 11:40 p.m. on May 9, 2024. He also faces allegations of urging an agency employee to make a false confession after the incident.

Immediately after the accident, he did not handle the scene but moved to a hotel near Guri, Gyeonggi Province, and appeared before police 17 hours later, admitting to driving. Kim Ho-joong, who had denied allegations of drunk driving, admitted to the act after CCTV footage and other evidence of his intoxicated state emerged, about 10 days after the accident. However, suspicions also arose that he attempted to evade legal consequences using the so-called 'drinking after the accident' tactic.

Kim Ho-joong was sentenced to two years and six months in prison last year and is currently serving his sentence. He is scheduled for release in November.

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*This content was translated by AI.