Polaris Entertainment ordered by courts to pay compensation in case related to LOONA The courts sided with Donuts in the case against Polaris Entertainment regarding an unreturned deposit lease deposit.
According to reports, the Seoul Central District Court ruled that Polaris Entertainment and its CEO Lee Jong Myung had to pay Donuts 360 Million won (approximately $34,700) for the deposit as well as additional compensation for delays.
Polaris Entertainment and Donuts teamed up in 2017 to start their girl group project, LOONA. The agency received 400 million won (approximately 338,500) as a deposit to rent a space. Donuts filed suit after Polaris Entertainment returned only 40 million won (approximately 33,000,850) and failed to return the remaining 360 million won.
Donuts stated that they had invested 3.5 billion won (approximately 2.96 million) to guarantee LOONA’s appearance on the “My Live” broadcast. This is run by their company. The agency did not return the deposit and they did not keep their promise regarding LOONA’s appearance. LOONA only appeared on “My Live” and they did not keep their promise to other members. We have therefore filed a lawsuit to recover our investment and are now preparing for separate criminal charges.
Polaris Entertainment stated that the “contract of the leasing deposit” and related lawsuit had not been received by their agency. They also explained that the “suit against this matter” is ongoing and will determine the court’s outcome.
Polaris Entertainment’s Appeal in Compensation Case Dismissed by Court + LOONA’s Comeback Plans Not Affected
LOONA’s parent company Polaris Entertainment filed an appeal against Donuts, a global IT company. Donuts, Blockberry Creative’s second largest shareholder, had previously invested 3.5 billion won (approximately 2,964,500) into Polaris Entertainment. However, the agency failed to fulfill the investment contract. The court ruled that Polaris Entertainment had to return all of its investment. The entertainment company appealed.
The case was transferred to the High Court in February. However, the appeal was rejected because neither party was present at the hearing.
According to the court statement of September 14, Seoul High Court upheld the Seoul High Court’s decision in the first trial concerning the appeal filed by Blockberry Creative, its parent company Polaris Entertainment. They stated that “LOONA’s representative failed more than two times to appear at the court dates for appeal trial. Therefore, we have ruled dismissal of the appeal.”
Entertainment company must return 3.5 Billion Won (approximately $2964,500) to investor Donuts. Polaris Entertainment was involved last year in a Donuts case regarding an unreturned lease deposit. The agency joined forces with Donuts in 2017 to start their LOONA girl group project. Polaris Entertainment received 400m won (approximately 338,500) as a deposit from Donuts to lease a space. Donuts filed suit after Entertainment returned only 40 million won (approximately 33,000,850), and didn’t return the remaining 360 million won.
The Seoul Central District Court ruled in October 2019 that Polaris and Lee Jong Myung, its CEO, must pay Donuts 360 millions won (approximately $34,700) for the lease deposit. Additional compensation was also required for delays.
Donuts will be able to claim LOONA rights in accordance to the investment contract to stop Blockberry’s transfer of the group to another agency.
Blockberry Creative’s source said that the company was doing everything possible to help LOONA’s return and activities. This is currently being done. We are moving forward without any problems.”
Breaking Polaris is raided and the CEO of Polaris Entertainment Arrested
Polaris Entertainment was raided by the Korean government, IRS and resulted in President Lee Gyu Tae, as well as other executives being taken into custody.
The Ilkwang Group, which is the parent company of Entertainment, was raided with 10 of their offices on the morning of March 11. The Korean government and IRS also searched the President’s residence. This executive was also involved in the scandal surrounding Clara, a singer and model.
Ilkwang Group, a manufacturing company, is involved in government contracts for South Korea. This includes the Korean military, airfare, and navy. Multiple subsidiaries of the company are also owned by Ilkwang Group, including Polaris Entertainment.
In order to establish a case against the company, it was revealed that the government had taken sensitive documents and hard drives. The military is being charged with a high price for the services of the company, particularly the “EWTS” program.
EWTS is an apparatus that helps pilots learn to cope with frequency disturbances during wartime. It also aids them in maximizing their chances of survival. There are rumors that Polaris Entertainment has been shut down, but no Korean media has reported this fact.