Singer Lee Seung-gi and his former agency, Hook Entertainment, showed sharp differences in opinion at a public trial regarding their settlement dispute.

The first public trial for the lawsuit initiated by Hook against Lee Seung-gi to confirm the existence of debt took place on the 23rd, under the Civil Affairs 20 division of the Seoul Central District Court. Neither Hook's representative, Kwon Jin-young, nor Lee Seung-gi attended the trial on this day, with legal representatives from both sides making appearances on their behalf.

At the trial, Hook argued that they had over-settled too much in advertising revenue to Lee Seung-gi, and therefore they needed to recover the overpaid $9 million in advertising commission. According to the exclusive contract, it was agreed to deduct agency fees and distribute profits, but since 2015, Hook has not deducted agency fees in the process of profit distribution with Lee Seung-gi, leading to their stance on the need for a refund for the overpaid portion.

On the other hand, Lee Seung-gi's side argued that Hook had underpaid him by about $30 million in advertising commissions and related costs. Lee Seung-gi's representative stated, "The advertising agency commission dropped from 10% to 7%, but the agency hid this and continued to distribute profits after deducting 10%," adding, "Therefore, (Lee Seung-gi) has more to receive in settlements."

Meanwhile, Lee Seung-gi sent a certified document last year stating that Hook had concealed the fact that music royalties had been generated over the past 18 years and had not settled this. Alongside this, Lee Seung-gi filed a complaint against Hook's CEO Kwon Jin-young and the finance director for violation of the Aggravated Punishment of Specific Economic Crimes Act (embezzlement in office), and fraud.

As the controversy grew, Hook filed a lawsuit to confirm the existence of debt after paying Lee Seung-gi a total of $54 million. However, Hook later changed its position, arguing that it needed to recover the overpaid $9 million from Lee Seung-gi.

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