Once again, singer Park Hyo Shin is embroiled in controversy, this time facing a lawsuit for fraud. 

According to SPOTV News on the 25th, Park Hyo Shin has been accused of violating the Specific Economic Crimes Aggravated Punishment Act (fraud) and obstruction of business by officials from his former agency.

On the 7th of this month, former representatives of Glove Entertainment, along with shareholders who hold stock in the company, filed a lawsuit against Park Hyo Shin at the Yongsan Police Station in Seoul. Glove Entertainment had allotted new shares to Park Hyo Shin and other shareholders through two paid capital increases in May 2016 and August 2018.

The plaintiffs claim that Park Hyo Shin misled them about the ownership of shares in the company, asserting that a "nominee trust agreement" existed when it actually did not. They allege that Park Hyo Shin deceived them by claiming that he had entrusted shares under their names, leading them to mistakenly believe he owned the shares. The lawsuit further alleges that, in March 2022, Park Hyo Shin exercised voting rights over these shares during a general shareholders meeting, appointing three individuals loyal to him as directors, and took control of the company. In August 2023, he allegedly used these same voting rights to dismiss the former CEO, A.

The plaintiffs argue that Park Hyo Shin's actions qualify as a "triangle fraud," a form of fraud in which the deceived party and the victim are different.

However, Park Hyo Shin's side has denied the accusations in an interview with the media, stating that while he is involved in a civil lawsuit over shares, he has not been sued for fraud.

This marks the fifth lawsuit Park Hyo Shin has faced. In 2006, his former agency, Nissy Entertainment, filed a lawsuit claiming Park Hyo Shin had illegally terminated his exclusive contract, demanding 1 billion KRW (approximately $750,000) in damages. Park Hyo Shin countersued, and the case was settled with a withdrawal of the lawsuit.

In 2008, Park Hyo Shin was embroiled in a legal dispute with his former agency, Nawon Entertainment (Interstage) agency, over a contract termination. Interstage sought 3 billion KRW (approximately $2.25 million) in damages, and while Park Hyo Shin denied the allegations, the court ruled in favor of Interstage.

In May 2014, Park Hyo Shin was accused of attempting to avoid compulsory enforcement by hiding, damaging, or falsely transferring assets. Initially, he was acquitted, but in 2016, the Supreme Court upheld his conviction.

Additionally, in 2019, a businessman filed a lawsuit against Park Hyo Shin, claiming that he had fraudulently taken over goods worth over 400 million KRW (approximately $300,000), including a car and a wristwatch.

Despite these legal challenges, Park Hyo Shin is set to perform in the 10th-anniversary production of the musical 'Phantom,' which is scheduled to open on the 31st of next month.

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