Park Hyo Shin won the first trial in the legal dispute against his former agency, Glove Entertainment.

The singer previously filed a lawsuit for recognition of his management control as the second-largest shareholder of the company, and the court accepted it.

On January 26, the 31st division of the Seoul Central District Court Civil Settlement recently ruled in favor of the plaintiff in a lawsuit against Glove Entertainment filed by Park Hyo Shin and 'A' for invalidating the issuance of new shares.

Park Hyo Shin is the second largest shareholder, with a 39.37% stake in Glove Entertainment, and 'A' is the third largest shareholder, with 10.76%.

In February of last year, Glove Entertainment held a general meeting of shareholders and decided on a paid-in capital increase (a company issuing additional shares to increase its capital) worth 100 million KRW (~80,966 USD) (20,000 shares) to a third party. This is because the scale of the business has expanded, and it would be difficult to carry out the business with the capital they had at the time.

Park Hyo Shin and 'A' filed a lawsuit in April last year, claiming that Glove Entertainment's decision to issue a paid-in capital increase to a third party was illegal. They claimed that the former CEO, 'B,' who is the largest shareholder, assigned new shares to his aides and defended his management rights by lowering the stakes of Park Hyo Shin and 'A' by increasing the number of total issued shares.

Additionally, Park Hyo Shin and 'A' added, "B (CEO) said it was a decision to raise operating funds of the company, but even if there is such a need, it must be confirmed in a timely manner about the difficulties to raise funds with a shareholder allocation method."

Glove Entertainment did not respond in any way to this, and the court ordered the issuance of the new shares to be invalidated.

Previously, Park Hyo Shin updated his fans by sharing, "I never imagined that I would not be able to promote since 2019. I wasn't able to receive any payment for my music proceeds and contract from Glove."

In May of last year, Park Hyo Shin set up his own agency and has been active since.