On November 17, Kakao Entertainment gave a statement in response to earlier reports which claimed that the Fair Trade Commission has launched an investigation surrounding the agency's controversial Facebook page 'Idol Issue'.
Previously, it was revealed that the Facebook page known as 'Idol Issue', known for spreading various content related to entertainment including controversial and unverified rumors, was run by Kakao Entertainment. Soon afterward, the agency received accusations of spreading false rumors about various competing agency idol groups in order to portray idol groups under their subsidiary companies in a better light.
On November 17, a representative of Kakao relayed, "While it's true that the Fair Trade Commission carried out an investigation at our company headquarters on November 16, we cannot disclose specific details regarding the reasons for the FTC investigation."
The rep continued, "The accusations that we spread false and controversial rumors are completely false."
Meanwhile, some time after news began spreading that the Facebook page 'Idol Issue' was run by Kakao, the page was closed. Kakao commented at the time, "We have confirmed that due to poor management by the agency in charge of overseeing the page, content which infringed on copyright laws were shared without permission. As soon as we learned of this fact, we took responsibility by closing the page."
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