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Home Celebrity

Polaris Entertainment: CEO Arrested For Fraud; Office Temporarily Shut Down

by Adrina
March 13, 2015
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The past few months have been nothing but a series of unfortunate events for Polaris Entertainment,

It was announced today that the Ilkwang Group-owned company has been temporarily shut down after being raided by the Korean government and IRS. The president of the group, President Lee Gyu Tae was subsequently arrested and is currently under investigation for fraud.

Polaris Entertainment CEO

Ilkwang Group is one of the largest corporations that is involved in government contracts for South Korea. The corporation owns multiple companies including Polaris Entertainment, an entertainment company that manages K-Pop artistes. It is also known for manufacturing training simulation programs for the Korean military, airforce, and navy.

However, the company is currently being accused of overcharging the military for their services, specifically the “EWTS” programme. The programme is typically used for pilots to aid them in getting used to frequency disturbances so that the chance of the survival during wartime is higher.

The Korean government and IRS raided 10 locations including Ilkwang Group’s headquarters, subsidiary offices, and the president’s home. The officials confiscated all sensitive documents and hard drives that might contain proofs that Ilkwang Group ripped off the Korean government with its “ridiculous” charging free. All personnel has been asked to leave the building as the company has been shut down temporarily.

Polaris Entertainment
Source

President Lee is the same executive that was involved in a lawsuit filed by former Polaris Entertainment artiste Clara (real name: Lee Sung-min).  The actress-singer accused him of sexual harassment as she felt uncomfortable with his inappropriate text messages and actions. When Polaris Entertainment filed a lawsuit against her for running activities under her company Koreana Clara, Clara countered back by filing another lawsuit against the company, requesting her contract to be nullified

Polaris Entertainment manages Ladies’ Code, Kim Bum-soo, rapper Iron, and more. Rapper Iron, who recently lent his voice in SHINee’s Jonghyun’s solo album, was supposed to make his debut under Polaris Entertainment next week, but the case has now put his debut on hold.

Rapper Iron
Source: AKP

No further details have been announced yet, but more to come as the story unfolds.

(Source: Moonrok / Featured image)

ClaraClara Polaris EntertainmentLadies CodePolaris EntertainmentPolaris Entertainment CEOPolaris Entertainment LawsuitPolaris Entertainment StatementRapper Iron
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