Lee Seung-gi Wins Lawsuit Against Former Agency Over Unpaid Royalties, Ordered to Receive 580 Million KRW
Singer and actor Lee Seung-gi has emerged victorious in his legal battle with former agency Hook Entertainment, now renamed Green Snake Entertainment, over unpaid settlement fees, marking a significant moment in the fight for fair treatment in the Korean entertainment industry.
On June 4, the Seoul Central District Court’s Civil Agreement Division 20 ruled in favor of Lee Seung-gi in the lawsuit filed by Green Snake Entertainment, which had sought confirmation that Lee was still in debt to the agency by approximately 900 million KRW (~ 630,000 USD.)
The court ruled that, “Green Snake Entertainment must pay Lee Seung-gi 581,377,421 KRW plus delayed interest,” and dismissed all remaining claims from Green Snake regarding additional fees and counterclaims.
Additionally, the court decided that both parties would bear 50% of legal costs.
Background: The Fight for Royalties
This ruling is the culmination of a long-running battle that began in November 2022, when Lee Seung-gi first publicly accused Hook Entertainment of failing to pay him any music royalties over the course of his 18-year career under the company. He sent a certified letter demanding a proper settlement of unpaid earnings.
In December 2022, Hook responded by transferring 5.4 billion KRW to Lee in unpaid royalties and interest. Lee, known for his philanthropic work, donated 5 billion KRW (after legal fees) to charity.
However, Hook Entertainment later reversed course and filed a lawsuit, claiming that it had overpaid Lee by 900 million KRW in advertising revenue. They initially asserted that Lee owed them nothing but later changed their position.
Lee’s legal team countered with newly discovered records indicating that the unpaid royalties actually totaled 9.6 billion KRW, meaning that the company still owed him an additional 3 billion KRW.
Lee Seung-gi’s Emotional Court Testimony
During the second hearing, Lee Seung-gi appeared in court and read a heartfelt statement that captured both public and media attention.
“We were together from my teens to my 30s. If they had honestly disclosed the existence of music royalties and settled them properly, this situation wouldn’t have happened,” he stated. He continued, “How could an entertainer of my seniority, someone known to the public, go 20 years without knowing such basic rights?”
He also referenced abusive remarks from Hook CEO Kwon Jin-young, saying, “CEO Kwon once told me, ‘I could pick anyone off the street and make them more successful than you.’ He reacted with extreme displeasure any time money came up, whether it was performance fees or contracts, and painted me as someone greedy.”
Lee noted that he only learned about the existence of his royalty rights in 2021, underscoring the depth of the agency’s deception, “I feel deeply betrayed by the company and CEO Kwon Jin-young, who deceived me for so long. I hope no other young entertainers suffer the same unfair treatment.”
Revealing Internal Conversations: The Kim Young-ran Act Mentioned
During the third hearing, a recorded conversation between Lee and Director A of Hook was presented to the court. In the conversation, dated August 8, 2022, Director A said, “Seung-gi, songs like ‘Will You Marry Me’ and ‘Return’ did well. But looking at the old contracts, your early albums and remakes were in the red. The contracts were based on those losses.”
Director A also claimed that, “Back then, marketing costs were high, entertaining journalists, etc.” Lee reacted with visible shock, “Isn’t that illegal under the Kim Young-ran Act?”
Director B, who was responsible for PR, later contradicted A’s statement by clarifying that no bribes were paid to journalists, adding further confusion to Hook’s internal accounts.
Final Words and Industry Reform
In his closing statement, Lee Seung-gi declared, “For 18 years, I never received proper settlements for concerts, album sales, or TV appearances. It’s frustrating beyond words.”
He criticized the agency’s reactive settlement, “Only after I demanded payment did Hook attempt to settle. Why should I have to beg for what’s rightfully mine?”
Lee also took the opportunity to address the larger issues in the entertainment industry, “Many young entertainers still face unfair treatment. Thankfully, the ‘Lee Seung-gi Prevention Act’ has been introduced, but this isn’t just about Hook, many agencies keep separate accounting books. I hope the court ensures no young artists suffer like I did.”
A Landmark Victory
This court ruling does more than vindicate Lee Seung-gi. It also sets a precedent for accountability and transparency in South Korea’s entertainment sector, particularly in agency-artist relationships. As one of the most respected figures in K-entertainment, Lee’s victory has been lauded by fans and industry insiders alike as a turning point in artist rights advocacy.
The case has shed light on long-standing issues of exploitation and unethical financial practices, and with the court officially siding with Lee, the ruling is expected to inspire more entertainers to speak out against injustice and pursue rightful compensation.