The CEO of an entertainment company embroiled in a case concerning unpaid appearance fees to broadcasters Lee Kyung Kyu and Jang Do Yeon has expressed dissatisfaction with the appeal trial verdict and filed an appeal.

According to sources in the legal community on January 30 KST, the CEO, known as Mr. Ahn, submitted his appeal on the 18th of this month.

Previously, on January 12, the Criminal Agreement Division 11 of the Seoul Western District Court, presided over by Chief Judge Bae Seong Jung, had sentenced Mr. Ahn, who was indicted on charges of violating the Specific Economic Crimes Act (embezzlement), to a three-year prison term and four years of probation.

Mr. Ahn serves as the CEO of K Media, a video production company, and is accused of utilizing funds from K Stars, a wholly owned subsidiary engaged in the broadcast entertainment management business, to address the financial challenges facing the parent company.

During the investigation, it was revealed that a total of 14.1495 billion won had been transferred from the subsidiary to the parent company on 279 occasions from March 2016 to November 2020.

Mr. Ahn's defense during the trial maintained that "K Media and K Stars operated effectively as a single corporation, and the funds were transferred to address the management crises faced by both companies."

Furthermore, they emphasized, "Without the financial support provided by these funds, it would have been exceedingly difficult for both companies to ensure their survival. Therefore, it is problematic to characterize the fund transfers as embezzlement when they were intended for the benefit of both corporations."

It is worth noting that K Stars, an entertainment company that counts well-known celebrities like Lee Kyung Kyu, Yoo Se Yoon, Jang Dong Min, and Jang Do Yeon among its roster, allegedly failed to pay them hundreds of millions of won in appearance fees and eventually ceased operations in September 2021.