Bae denies fraud claim

'PREPOSTEROUS': Koje claims Bae caused it to lose huge sums of money.


    Sep 26, 2014

    Bae denies fraud claim


    KOREAN actor Bae Yong Joon has denied allegations of fraud after he was sued by a health-food supplements firm.

    KeyEast, an entertainment company of which the actor is the majority shareholder, released a statement on Tuesday, denying the accusations.

    "Koje (the supplement firm) is using Bae's fame to make a social issue out of its preposterous claims," the statement read. "Every action will be taken to respond firmly to the false accusations."

    Koje signed a contract in 2009 to sell red ginseng in Japan on behalf of Gorilla Life Way, a restaurant business owned by Bae. However, the agreement broke down the following year.

    The South Korean food company argued that it gave Bae's company 2.2 billion won for the sales rights, but the money was not used to carry out market research as outlined in the contract.

    The company last year took the matter to court, filing a suit against Gorilla Life Way, but the court rejected the claim. Koje is suing Bae, claiming that the actor's deception caused it to lose huge sums of money.

    The prosecutors' office said no plan has been set to summon Bae for questioning.

    The actor starred in TV dramas such as Winter Sonata, which played a role in fuelling the Korean Wave across much of Asia.

    He is now one of the wealthiest stars in Korea, owning equity stakes in various businesses.