Jannabi's Choi Jung Hoon And Agency Respond To Reports Of His Father's Fraud And Embezzlement

May 26, 2019

On May 24, SBS reported that businessman “Choi” is under investigation for fraud and embezzlement and suspected of providing tens of millions of won (approximately tens of thousands of dollars) in the form of entertainment to former Vice-minister of Ministry of Justice Kim Hak Eui. It was also revealed that the son of this businessman is a member of a popular band and is under suspicion of participating in the operation of the problematic company.

Three years ago, Mr. Choi established a real estate business and attained a development license in Yongin, Gyeonggi Province after just one year. However, his license was on the verge of being revoked after he was unable to pay certain fees, and he instead sold it for 100 billion won (approximately $84.3 million) to another businessman in the real estate industry named “A.” However, after “A” had paid the 17 billion won (approximately $1.4 million) fees that Mr. Choi did not, “A” realized that the terms he had initially agreed to were different from the true terms. Additionally, five months prior to their deal, the court approved an injunction prohibiting Mr. Choi from selling his business license, which he hid from “A.”

“A” recently sued Mr. Choi for fraud. Mr. Choi is also under suspicion of receiving the 15-billion-won (approximately $1.2 million) down payment through a check, instead of the company bank account, and pocketing the money. He is also facing lawsuits from the various investors who did not receive any money back, due to apparent lack of funds.

Both of Mr. Choi’s sons, one of whom is the vocalist of a popular band, are also under suspicion for intervening with the company’s management. There is evidence indicating that his sons voted at the general shareholders’ meeting of Mr. Choi’s business as the largest shareholders.

Mr. Choi has since explained that his children have nothing to do with the matter and that he only registered the stocks under their names. In regards to the 15 billion won (approximately $1.2 million) down payment that he was accused of taking, he stated that the co-CEO of his company, who recently passed away, had received the money. Mr. Choi lastly stated that he canceled his contract with “A” because “A” failed to fulfill the contract terms.

After being accused of being the band mentioned above, Jannabi and their agency Peponi Music have addressed the matter.

Recently, member Yoo Young Hyun left the band after admitting to reports of school violence, but Peponi Music has denied leader Choi Jung Hoon’s association with the aforementioned case.

On May 25, Peponi Music released a statement that reads as follows:

Hello. This is Peponi Music.

We are victims of news released by a certain broadcasting station yesterday. The topic of yesterday’s news is not true and has nothing to do with us, Peponi Music. We are not in association with the mentioned father or two sons and have not been investigated regarding this case. We are planning on taking legal action for the unconfirmed statements surfacing on various communities. Moving forward, we ask that you refrain from spreading groundless facts.

Although identities were anonymous when this news was revealed on SBS’s “News 8,” keywords such as Mr. Choi, two sons, and popular band led to the suspicion of Jannabi.

Choi Jung Hoon has also personally spoken about the issue, posting on Instagram the following statement:

Hello. This is Jannabi’s Choi Jung Hoon. I write this statement with a heavy heart.

First off, we would all like to take responsibility for Young Hyun’s school violence issue.

Since we have traveled such a long, breathless road looking only towards music, we were unable to take the time to look back. As the leader of Jannabi, I apologize once again on everyone’s behalf.

In addition, I want to share the truth regarding all the news surrounding me. For my fans who have related to my music and thought of it as a memory, I believe it is my duty to share the truth. Throughout my childhood and school days, I lived a wealthy life thanks to my father’s business.

However, in 2012, my father’s business failed, but he did not receive any financial assistance after that. 2012 is also the year Jannabi was formed. My father still dreamed of his business’s resurgence, so I allowed him to use my name to create a new company. He felt pressured to use his own, due to his poor credit score. This is the same reason that my brother and I have our names down as stockholders. I thought that I had to help my dad as his son. After confirming, the total price of my investment was only 15 million won (approximately $12,600).

I believe that those throwing my name around in the comments of articles that have nothing to do with me and those who have been providing these articles are the same people, or of the same community. They have taken my father’s hard-earned license and used his well-known son as bait to threaten. They have also made up stories to interrupt my father’s work, and while lawsuits against him have been made, he was cleared of the suspicions.

The father I know has always gone to work at an office and has never intentionally avoided conflict within his company. I feel unfortunate about reporter Go Jung Hyun who did not try to resolve things with my father and instead tried to tie my brother and myself into this.

My father also plans to make an official statement. In regards to Kim Hak Eui, whose name I do not even want to mention, the only thing I know is that they were close friends with my father since before I was born. I have never received any type of benefit because of him.

My father has always taught me not to run away and avoid my problems. I believe that my father will do the same. He promised me that he was face the consequences if he made mistakes and would reveal the truth about false news.

Lastly, I want to say that my brother and I do not have the strength to face such a big issue like this. As my fans and many others have seen through our stages, Jannabi and Peponi Music worked hard from the ground up. What kept my brother and I going was not my father’s money and resources, but his failures.

I am sorry and thankful for my mother who used the money our family had saved up in order to provide a basement studio and van for me. I created music and performed with a sincere heart, and my brother Choi Jung Joon has promoted my music more sincerely than anyone else. He has lived an upright and honest life.

I am scared to death that my sincerity, my music, and my performances will be seen in a hypocritical way. I beg for the people who are aware of the truth.

Please help me gain even a little bit of strength. I am so scared, tired, and in pain. I am sorry for causing concern.