The former CEO of singer YoungTak's agency has been sentenced to eight months in prison for manipulating music charts.
According to News 1, the 5th Criminal Division of the Seoul Central District Court held a sentencing hearing on the 4th for 11 individuals, including Lee Jae Gyu, the former CEO of Milagro (Young Tak’s former agency), and Kim, a former entertainment agency CEO. They were charged with obstruction of business by computer interference due to their involvement in artificially inflating music rankings.
During the trial, the court sentenced Lee Jae Gyu to eight months in prison, ordering his immediate detention. Additionally, other brokers involved in the scheme received sentences ranging from one year of probation to up to one year and six months in prison.
The court ruled, "Chart manipulation is a serious act that distorts the fair distribution of music and misleads consumers with false information. It should be severely punished as it causes immense psychological frustration to aspiring artists working hard to debut as singers or actors."
Lee Jae Gyu and 10 other defendants were charged with fraudulently boosting rankings on major domestic music streaming sites while managing Young Tak’s former agency.
From December 2018 to December 2019, they used approximately 500 virtual PCs, bulk-purchased IP addresses and 1,627 illegally acquired pieces of personal information. With these tools, they artificially streamed 15 songs 1,727,985 times to manipulate the rankings. They also recruited brokers to request ranking manipulations and circumvented music site security systems that detect abnormal streaming patterns.
During the trial, Lee Jae Gyu admitted to the charges, stating, "I do not dispute the facts. I paid 30 million won to raise the music charts," but he argued that the Music Industry Promotion Act and business obstruction laws needed further review.
Similarly, Kim, the entertainment agency official on trial with Lee, confessed, "I admit all the charges," but added that he had legal arguments regarding the case. Other defendants admitted to varying degrees of involvement, while some denied all charges, claiming their actions were marketing strategies rather than ranking manipulation.
The prosecution identified 15 manipulated songs, including Young Tak's 'Why Are You There?', Nature's 'Oopsie' and KCM's 'Between Love and Friendship'.
In the final hearing, prosecutors sought a one-year prison sentence for Lee Jae Gyu, two years and six months for Kim, and one year and six months for Yoo.
Despite the controversy, singer Young Tak was found not guilty and stated, "I have already been investigated by authorities and cleared of any involvement in this matter."
The case marks one of the most significant crackdowns on music chart manipulation in Korea, with multiple individuals receiving prison sentences for their roles in distorting digital rankings.
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