It has just been announced that the president of Ilkwang Group, the company that owns Polaris Entertainment, has been arrested and is currently under investigation for fraud.
On the morning of March 11, ten locations including Ilkwang Group’s headquarters, subsidiary offices, and Ilkwang Group President Lee Gyu Tae‘s home, were searched by the Korean government and IRS.
Ilkwang Group is a large corporation that manufactures training simulation programs for the Korean military, airforce, and navy. However, Ilkwang Group is also owns companies in multiple other businesses, including that of K-pop; Ilkwang Group owns Polaris Entertainment. President Lee Gyu Tae, is in fact the same Polaris Entertainment executive whom Korean celebrity Clara very publicly accused of sexual harrassment recently.
At the 10 locations investigated today, officials confiscated internal documents, accounting ledgers, and hard disks containing proof that Ilkwang Group has — in layman’s terms — ripped off the Korean government big time by over-charging them drastically for their weapons training and simulation products.
As a result, Polaris Entertainment has been temporarily shut down and all personnel has been asked to leave the building.
Meanwhile, President Lee Gyu Tae has been arrested and is currently being prosecuted for his financial crimes against the government.
Source: Donga Ilbo
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