Chairman Lee Kyu Tae (66) of Ilkwang Group, a large multifaceted conglomerate with many different businesses including supplying military equipment and entertainment such as Polaris, is under a lot of fire lately as not only is he the target of the public's interest with his recent scandal involving actress Clara, who claimed he had sexually humiliated her via KakaoTalk messages, but also he was arrested on March 11 on the suspicion of fraud at his home in Donam-dong, Seongbuk-gu, Seoul.
According to the Joint Investigation Department of Korea Defense Acquisition Program Corruption, Lee Kyu Tae is being charged with rebating and increasing the government budget by tens of billions of won (~ tens of millions of USD) by inflating the delivery payment and prices for the electronic warfare training equipment he mediated with the air force--some of which was revealed to have not been good quality.
On March 11, ten separate locations were raided. Documents, computer hard drives, and more were all confiscated for their investigation. Apparently, as a consequence, the Polaris offices seem to be closed, at least temporarily, and the website is inaccessible at the moment.
Even back in November, he was arrested and investigated by the government on the suspicions of corruption.
This is especially sad news for some fans who were looking forward to Polaris' rapper Iron who was slated to debut next week as they worry and wonder what will happen; not to mention, Polaris is the agency for Ladies' Code, whose remaining three members many fans were hoping to see in the music industry sometime again. With this news, there seem to be a lot of loose ends, raising curiosity about the future.