On January 4, TV Daily, borrowing the words from those in the legal field, reported, 

"[Davichi Kang Min Kyung's father] Kang received hundreds of thousands of Won (KRW) from religious foundation 'A' under the pretext of paying their taxes, but instead, is suspected of misappropriating those same funds for his company use, and is currently under investigation by the Supreme Prosecutors' Office of the Republic of Korea's Goyang Branch." 

Religious foundation 'A's attorney stated, "Mr. Kang approached the foundation, who was in the process of purchasing real estate for religious use, and introduced them to an agent; however, due to the faults of the agent, the bill of sale was voided, and when foundation 'A' was reimbursed with a cancellation fee, Kang tricked them, 'If you receive a cancellation fee from the agent, then you must pay 444,160,000 KRW (~$373,000 USD) in taxes. The fee is subject to tax withholdings, so if you give that money to me, I'll pay the taxes in your stead.'" 

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The attorney continued, "Kang expended the funds he received from religious foundation 'A' on his company, and the foundation belatedly learned that since they are a non-profit organization, they don't have any duty to pay taxes on their cancellation fee or an obligation to withhold taxes, and requested that Kang refund the money; however, Kang refused them. In the end, they had to file suit against Kang for fraud and embezzlement back in 2014." 

Kang Min Kyung's agency CJ E&M reportedly stated, "We have heard nothing of the sort," regarding the lawsuit and added, "We will look into it." 

Meanwhile, the Supreme Prosecutors' Office's Goyang Branch had dismissed the case as 'not guilty' in the first trial. But when the Supreme Court ordered a re-investigation into the case, the Goyang Branch opened up the case once more and is currently conducting another investigation.