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'The former CEO does not have standing': Court dismisses agency's suit against singer-actor Park Yoo-chun

Published: 06 Jul. 2025, 14:19

Singer and actor Park Yoo-chun [NEWS1]

A court recently dismissed a 480 million won ($352,000) lawsuit filed by the former head of a talent agency against Park Yoo-chun, in which the executive said the 39-year-old singer and actor had breached a contractual agreement.

On June 26, the Uijeongbu District Court allowed for the dismissal of a lawsuit filed by the former CEO of Park’s previous management agency, who had demanded the entertainer pay the amount stipulated by the contract.

A dismissal occurs when a court finds that a lawsuit does not meet legal requirements or is improperly filed, and thus makes no judgment on the substance of the case.

The agency head brought the suit in January of last year, accusing Park of failing to engage in any entertainment activities after signing a management contract with the company. The agency head demanded 200 million won in penalties for breach of contract and the return of an additional 280 million won that had been provided as an advance payment for contract fees, living expenses, taxes, phone bills and legal costs. They also argued that because the agency was a one-person corporation, it was entitled to personally seek repayment.

The court wrote in its order that the contract between Park and the agency included a clause requiring disputes to be resolved through arbitration by the Korean Commercial Arbitration Board and dismissed the case on the grounds that it violated that arbitration agreement.

“The existence of the arbitration clause is not disputed by either party,” the court added. “The claims for penalties and the return of funds are directly related to the execution of the contract and must be resolved through arbitration, not litigation.”

The court also noted that while the agency has ceased operations, it has not undergone liquidation or dissolution procedures and still maintains its legal corporate status.

“Accordingly, the former CEO does not have standing to personally claim the funds from Park,” the court added.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HAN YOUNG-HYE [[email protected]]