Park Yoo Chun has emerged victorious in a legal dispute involving a claim of approximately USD 350,000 filed by his former agency head.
On July 6 (KST), legal documents revealed that the Uijeongbu District Court, Namyangju Branch, dismissed a lawsuit filed by the former CEO of Agency A, who had sued Park Yoo Chun for breach of contract and unpaid funds totaling around 480 million KRW (approximately USD 350,000).
The plaintiff, referred to as B, argued that Park Yoo Chun had failed to carry out any entertainment activities after signing a management contract with Agency A. B demanded 200 million KRW (approx. USD 145,000) in penalties for breach of contract and an additional 280 million KRW (approx. USD 205,000) to cover contract fees, living expenses, communication costs, taxes, and legal fees allegedly paid or loaned to Park Yoo Chun.
However, the court dismissed the case, citing a binding arbitration clause in the original contract. According to the judge, both parties had agreed to resolve any disputes through the Korean Commercial Arbitration Board (KCAB), and the case could not be heard in a civil court unless the arbitration clause was deemed invalid, inoperative, or impossible to fulfill.
“The existence of an arbitration agreement between Park and Agency A is not in dispute,” the court stated. “Since the plaintiff’s claims are directly tied to the contract, this lawsuit violates the arbitration agreement.”
The court also noted that although Agency A has officially closed, it has not undergone proper dissolution or liquidation procedures and therefore still legally exists as a corporate entity. As a result, the former CEO B does not have the legal standing to personally claim the penalty or compensation from Park Yoo Chun.
This marks yet another legal victory for Park Yoo Chun, who has been involved in multiple disputes with his former agencies in recent years.
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