Seoul, South Korea - In a significant legal move, K-pop star Kang Daniel has lodged a formal complaint with the Seoul Metropolitan Police Agency, alleging criminal law violations and fraud.

According to YTN, the complaint targets "A," the majority shareholder (about 70%) of Kang's agency, KONNECT Entertainment, over a disputed ₩10.0 billion KRW (approximately $7.38 million USD) advance distribution contract.

📰 มีรายงานข่าวว่า "วันที่ 20 พ.ค. คังแดเนียล ได้ยื่นฟ้องหุ้นส่วนรายหนึ่ง ในข้อหาฉ้อโกง (ยักยอกเงิน) จากการใช้ชื่อและตำแหน่งในบริษัทในการแอบอ้าง ทำให้บริษัทเกิดความเสียหายจำนวน 1.4 หมื่นล้านวอน (ประมาณ 380 ล้านบาท)

จากการรายงานของ YTN วันนี้ (20 พ.ค.) คังแดเนียล… pic.twitter.com/nzKYfbLY7B

— With Kang Daniel Thailand (@WithKDN_TH) May 20, 2024

Kang Daniel asserts that he incurred substantial financial losses when shareholder A allegedly forged his identity and misused the company seal to finalize the lucrative contract in December 2022.

This unauthorized action has prompted Kang to seek legal redress, highlighting serious concerns about internal malpractices within his agency.

#KangDaniel has reported complaint to police against Mr.A, the largest company shareholder (70%), for fraud and violation of criminal law.

Kang claims "A" has signed an advanced distribution contract in Dec 2022 by stealing KangDaniel's name & stamp without his knowledge.

The… pic.twitter.com/wfWJC4RccQ

— KoreanUpdates! (@KoreanUpdates) May 20, 2024

Kang Daniel, who founded KONNECT Entertainment in 2019 and has served as its CEO, is expected to part ways with the agency as his exclusive contract concludes next month.

This development marks a potential turning point in Kang's career as he navigates his future outside the framework of the agency he established.

Kang Daniel been trying to settle this matter for a whole year trying to avoid damage towards his staffs and artists under the company, how did he do it... He looked happy but what do i fucking know?

— Ash 🐶 (slow) (@kdnildeung) May 20, 2024

READ MORE: Kang Daniel Called Out Amid Yuju's Recent Status - What Happened? 

The complaint has brought to light underlying tensions within KONNECT Entertainment.

강다니엘, 소속사 대주주 고소…"100억대 사문서 위조"#강다니엘 #고소 #대주주 #100억대 #사문서위조 #KANGDANIELhttps://t.co/LgECXaodGD

— 엑스포츠뉴스 (@xportsnews) May 20, 2024

Recently, the agency faced backlash from fans for inadequate promotion of another artist, YUJU.

This criticism has intensified scrutiny on KONNECT's management practices and overall operational integrity.

It has been reported that Mr. A withdrew a large sum of money from the company’s account, used the corporate card for improper purposes, and withdrew a large sum from Kang Daniel’s personal account without his consent, which has been included in the complaint.
😭😭😭😭😭😭

— 𝐢𝐧𝐞𝐯𝐚𝐧 (@inevan) May 20, 2024

Kang Daniel's decisive action against the majority shareholder not only underscores his commitment to transparency and accountability but also raises questions about the agency's future direction and leadership stability.

HERE ARE SOME OF THE NETIZENS' REACTIONS:

Niel, man, he worked so hard to build this agency. You guys are so mean!

No wonder he disappeared for 2 months He could be traumatized by this, his trust issues are getting worse, especially with the same kind of case like Lemon. Stay strong, Niel

Daniel is a good person, but his agency has never treated him well. Even though it's his own agency, the higher-ups are problematic.

Niel, damn, he worked so hard to build this agency. You guys are so cruel 

People keep stabbing him in the back and deceiving him. He has been living with a steel mentality, and his solo struggles never end. I'm crying 

As the legal proceedings unfold, the K-pop industry and fans alike are keenly watching how this high-profile dispute will be resolved.

For Kang Daniel, this legal battle represents both a challenge and an opportunity to redefine his professional journey, potentially paving the way for new ventures and partnerships beyond KONNECT Entertainment.

ALSO READ: How Rich is Kang Daniel? Idol & KONNECT CEO's 2023 Net Worth Unveiled

KpopStarz owns this article.

Written by Cassidy Jones