Concert production company JG Star has issued an official statement refuting singer Lim Chang Jung’s claims regarding a ₩1 billion (~$689,000) unpaid performance fee dispute.
On March 19 KST, JG Star stated, “The ongoing dispute regarding Lim Chang Jung’s concert payments is not simply a matter of performance fees but a broader contractual issue. Despite Lim Chang Jung’s claim that he has made every effort to resolve the matter, the reality is quite different. After seeing his response denying the allegations, we have decided to pursue legal action.”
JG Star laid out the timeline of events leading to the dispute:
1. 2020-2021 National Tour Contract Violation
• JG Star signed a nationwide tour contract with Lim in March 2020 and paid him ₩1.48 billion (~$1 million) in advance.
• However, in November 2021, Lim violated COVID-19 protocols, contracted the virus, and the concerts were postponed.
• JG Star absorbed all financial losses, including venue cancellation fees and a one-year venue ban, to support Lim’s comeback.
• Lim verbally agreed to grant JG Star lifetime concert rights in exchange.
2. Unilateral Contract Termination for 2023 Concerts
• The postponed concerts were rescheduled for 2023, and JG Star had begun preparations.
• However, Lim suddenly terminated the agreement and attempted to hold concerts with a new investor, breaching his prior commitment.
3. Unfulfilled Payments for a Remake Album
• In 2022, Lim and JG Star signed a contract for a remake album ahead of his tour.
• JG Star invested ₩115 million (~$79,000), covering recording fees, arrangements, and licensing costs.
• Lim received an advance of ₩75 million (~$51,000), but the project was never completed.
4. Stock Manipulation Scandal’s Financial Fallout
• Following Lim’s involvement in a stock manipulation scandal in April 2023, his professional activities were significantly impacted.
• On May 13, 2023, JG Star and Lim reached a settlement agreement, outlining losses:
• Concert damages: ₩720 million
• Canceled venue fees: ₩77.8 million
• Unreleased album expenses: ₩75 million
• Public relations costs: ₩25 million
• Total loss compensation: ₩1.12 billion (~$772,000)
5. Property Collateral Dispute
• Lim transferred temporary ownership of his office building to JG Star as collateral.
• However, JG Star later discovered the building was heavily mortgaged, making it insufficient to cover the losses.
• Lim continued to use the building without paying rent, contradicting his claims of financial hardship.
6. Alleged Concealment of Earnings
• JG Star accused Lim of hiding financial resources:
• ₩2.1 billion (~$1.45 million) in music copyright sales
• ₩1.4 billion (~$0.96 million) in concert fees
• Total of ₩3.5 billion (~$2.4 million) in earnings
• Despite this, Lim allegedly failed to repay debts and ceased communication in late 2023.
Due to Lim Chang Jung’s alleged breach of contract and financial misconduct, JG Star announced they have initiated legal proceedings to secure compensation. The agency emphasized that they had supported Lim’s comeback despite losses but would now pursue full financial restitution through legal channels.
“Lim Chang Jung had the means to repay his debts but chose to avoid doing so. His recent statements distort the facts, and we will take all necessary legal measures to ensure fair compensation,” JG Star concluded.
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