[Exclusive]"I didn't know for 20 years": Lee Seung-gi concludes lawsuit over settlement payments with former agency [Comprehensive]

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• Won partial victory in first instance with "690 million won payment"… Both parties withdraw appeals against former agency

Singer and actor Lee Seung-gi is set to conclude his lawsuit over settlement payments with his former agency, Hook Entertainment (now Chorokbaem Media).

According to StarNews's verification, both Lee Seung-gi and Hook Entertainment submitted withdrawal of appeal documents through their legal representatives on the 29th, ahead of the appellate trial for a settlement payment lawsuit worth approximately 139 million won.

Lee Seung-gi filed a lawsuit in February last year, arguing that Hook Entertainment had continued to earn revenue from music streaming and album sales even after he terminated his exclusive contract in December 2022, and demanding a distribution of those earnings. In response, Hook Entertainment claimed that the obligation to settle payments only arises if there is a separate agreement, even if certain revenues are acquired after the termination of the exclusive contract.

Subsequently, the Civil Division 20 of the Seoul Central District Court ruled in favor of the plaintiff partially on August 28 last year in the first instance of Lee Seung-gi's settlement payment lawsuit against Hook Entertainment for approximately 829.9 million won, stating that "Hook Entertainment must pay approximately 690 million won out of the approximately 830 million won claimed by Lee Seung-gi."

The court pointed out, "Even without a separate settlement agreement, the obligation to settle payments must be borne. It is a result where the party who breached the contract acquires more profit than if they had adhered to the contract, which clearly violates the principle of good faith and equity."

However, the court did not fully recognize Lee Seung-gi's side's demands regarding the settlement ratio. Lee Seung-gi's side demanded 70% of revenue generated until the contract expiration in August 2024 and 50% of subsequent revenue, but the court recognized 60% and 40%, respectively, considering industry practices such as the settlement ratio being lower than during the contract period after its termination.

In response, Hook Entertainment submitted an appeal against the first-instance ruling, and Lee Seung-gi also appealed, so a second-instance trial was scheduled to be held again, and the amount in controversy for the lawsuit also decreased.

However, with both parties withdrawing their appeals ahead of the appellate trial, the second-instance trial will not be held.

The conflict between the two sides over settlement payments is not the first time.

Lee Seung-gi sent a certified letter in November 2022, claiming that he had not received any settlement for music usage fees since his debut from Hook Entertainment. Subsequently, Hook Entertainment filed a lawsuit seeking confirmation of non-existence of debt after paying approximately 5.4 billion won in settlement payments calculated by itself, and Lee Seung-gi countered with a counterclaim.

Later, the court ruled in April 2025 that "Hook Entertainment must additionally pay Lee Seung-gi approximately 580 million won in advertising fees," and the ruling became final as neither party appealed.

In November 2022, Lee Seung-gi sent a certified letter claiming that he had not received any settlement for music usage fees since his debut from Hook, where he had been affiliated for 18 years, and demanding settlement of unsettled earnings. Subsequently, Hook sent Lee Seung-gi 5.4 billion won in settlement payments in December 2022 under the names of unpaid settlement amounts and delayed interest, and Lee Seung-gi donated 5 billion won, excluding litigation costs, to society.

Hook Entertainment, which had filed the lawsuit at the time, claimed that it had paid more than the actual amount for advertising activity settlements to Lee Seung-gi and should recover 900 million won, and changed its claim from seeking confirmation that Lee Seung-gi had no debt at the time of filing the lawsuit. On the other hand, Lee Seung-gi's side countered that unpaid settlement amounts reached 9.6 billion won based on newly secured materials, arguing that they should receive an additional 3 billion won from Hook Entertainment.

Lee Seung-gi personally appeared at the second hearing and read a petition, stating, "We were together from our teens to our thirties. I feel upset thinking that if they had honestly and cleanly handled the existence of music fees and settlements, this would not have happened. I wanted to say how an entertainer of my seniority, who is known to people to this extent, could have lived for 20 years without knowing such a natural right." He also claimed, "CEO Kwon Jin-young said, 'I think I could raise you better even if I brought in just anyone from the street.' From the time of my debut, CEO Kwon Jin-young found it very unpleasant to talk about money-related matters such as appearance fees or contract payments. He got very angry and pushed me around as a bad person who only cares about money."

Lee Seung-gi emphasized that he first learned about the existence of music fees in 2021, adding, "I feel a great sense of betrayal that the company I trusted and CEO Kwon Jin-young had been deceiving me for a long time. I took great courage hoping that this will not be repeated again and no more victims like me will arise. Through this case, I hope that junior entertainers who debuted at a young age like me will not suffer similar disadvantages."

Subsequently, Lee Seung-gi's lawyer expressed an opinion on the resumption of proceedings during the seventh hearing in November 2024. Lee Seung-gi also directly appealed, stating, "I did not receive proper settlements for concerts, album sales, and broadcasting activities for 18 years." He said, "There were materials held by a party I didn't even know about. It is a frustrating state of mind that is hard to express in words." He continued, "When I demanded settlement payments, (Hook Entertainment) tried to pay the settlement payments only later. Why do I have to ask about music revenue to receive it?"

Lee Seung-gi added, "Young (entertainment industry) friends are still receiving unreasonable treatment. Fortunately, the 'Lee Seung-gi Incident Prevention Act' has recently been enacted, which is a relief. This is not just Hook's issue. Many agencies often keep separate accounting books. I ask the court to look into it so that young people active in the entertainment industry like me do not suffer from settlement payments."

After finishing the trial, Lee Seung-gi responded to reporters' question asking if he had received any contact or direct talk about settlements from Hook Entertainment during the trial proceedings by saying, "There was no contact at all. I did not hear any talk about them settling payments either."

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*This content was translated by AI.View Original