On June 26 at approximately 11 AM KST, the first appeal hearing between LM Entertainment and Kang Daniel took place at Seoul's Central District Court. 

Back on June 10, the court ruled that Kang Daniel indeed had valid reasons to request the nullification of his exclusive contract with LM Entertainment, based on LM's violation of certain clauses in the exclusive contract. LM Entertainment immediately chose to appeal the court's decision on June 13, extending the legal dispute. 

During this first appeal hearing on June 26, LM Entertainment's legal representative argued that they did not hand over the rights to a business partnership involving Kang to a different label, MMO Entertainment, as Kang Daniel's side argued during the initial trial. On the other hand, Kang Daniel's legal rep maintained their stance from the initial trial, claiming that to pass over even a portion of the rights to the partnership was a violation of Kang Daniel's exclusive contract; however, LM Entertainment not only passed over a portion of the rights, but most. 

LM Entertainment's legal rep additionally argued that this ongoing dispute has inflicted significant damage to the label's image, and even in the case that they win this court case, they are willing to work with Kang Daniel's new label Konnect Entertainment in order to continue their partnership. 

In response to this, Kang Daniel's legal representative stressed that LM Entertainment's intentions to seek a partnership with Konnect Entertainment was purely one-sided.

Meanwhile, Kang Daniel is currently preparing for his solo debut under his one-man agency, Konnect Entertainment. His new label is also discussing a music distribution partnership with Kakao M, indicating that Kang Daniel plans to return to his promotions soon.