They explained, "According to the law firm Chamjin that took up Hwayobi's lawsuit, on the investment contract worth 1 billion KRW with her previous label, she never even heard about the joint guarantee, and the seal that was used on the contract was also a seal that was temporarily created by the previous label. They then made Hwayobi responsible for repaying the invested fees."

They added, "Hwayobi recently was made aware of the fact that her previous label faked her seal when making the investment contract in 2010. She filed the lawsuit after consultation with her attorneys and to prevent fraud."