Hwang Jung-eum’s Embezzlement Controversy: Scandal or Misjudged Business Move?
The controversy erupted when it was revealed that actress Hwang Jung-eum used funds from her own company, Hunminjeongeum Entertainment, to invest in cryptocurrency.
Though the law defines the action as embezzlement, many observers argue the context complicates the narrative. The company was 100% owned by Hwang, meaning there were no external shareholders or affiliated celebrities involved, and all profits—and losses—were her own.
On May 15, Hwang addressed the issue with a formal apology via her agency, Y.ONE Entertainment.
“I’m deeply sorry for causing concern with this shameful matter,” she began. “The agency was created solely to support my own entertainment career. I was the only shareholder, and the revenue was exclusively from my personal activities.”
Hwang explained that she was advised by those around her in 2021 to invest in cryptocurrency as a way to expand her business. Though she admitted the decision was unwise, she emphasized that no third parties were harmed:
“I did suffer losses, but since the income came from my own work and there are no creditors beyond the bank holding collateral, I consider it fortunate that no one else was impacted.”
She further revealed that she has cut ties with the company, repaid a significant portion of the withdrawn funds as advances, and is in the process of selling personal real estate assets to cover the rest.
Despite taking responsibility, public criticism has continued—some of it veering into personal territory, including jabs at her car and spending habits. Critics argue this is excessive, especially considering that using personal corporations for tax and investment purposes is standard practice in Korea’s entertainment industry. Hunminjeongeum Entertainment was legally registered for both talent management and property leasing.
The controversy may also affect her professional projects. Her dating variety show, Because I’m Single, has completed filming, but producers are reportedly debating whether to re-edit episodes in light of the scandal.