A Seoul court has ruled that the former director of Omega X’s agency must pay 1.3 billion won ($884,000) to an investment firm. He was found responsible for the termination of the group’s exclusive contract. The court said trust between the members and the agency broke down because of his actions. These included assault, verbal abuse, sexual harassment, coercion, and threats.
The ruling came from the 46th Civil Affairs Department of the Seoul Central District Court. Presiding Judge Kim Hyung Cheol handled the case. The lawsuit was filed by the investment firm against the former CEO of SPIRE Entertainment, his wife, and other agency staff. The court sided with the investment firm. It was agreed that the contract money should be returned since his misconduct caused the termination.
Omega X debuted in June 2021, and the investment firm had signed a contract with SPIRE in March 2021. The contract gave him exclusive management over all of Omega X’s activities, including Japanese TV appearances and acting. The contract was for four years, and the firm paid 200 million yen, about 2 billion won (about $1.4m).
The problem began in November 2022. Omega X members went public with allegations of verbal abuse, being forced to attend drinking parties, and sexual harassment by a former agency director. They held a press conference, and SPIRE responded with its own press conference. A war of words followed, but most of the members’ claims were proven true.
Omega X later won a lawsuit to suspend the validity of their exclusive contract. They also received a judgment for damages and the former SPIRE Entertainment CEO was found guilty of assault in July 2023. Sexual harassment charges were forwarded to the prosecution.
In November 2022, the investment firm formally terminated the contract. They said the purpose of the contract could no longer be achieved because the members had withdrawn.
They also sent an email demanding the return of the unearned portion of the deposit, 130 million yen. According to the contract, if one party caused the termination, the deposit had to be returned.
Since the former CEO refused to return the deposit and the case went to court. During the trial, the investment firm said he committed assault, verbal abuse, sexual harassment, and threats. They argued that the contract ended because of his actions.
The court ruled against the disgraced ex-CEO. It said trust between the members and the agency was broken because of his behavior. The court added that the termination followed the contract rules. He must pay the unearned deposit, 1.3 billion won.
The court also said his abuse was frequent and serious. It often happened in front of the members. The court noted that when the news of his behavior came out, he threatened to cancel all of the members’ return flights and suggested he might take his own life. The court concluded that he should be held liable for damages.
The ruling is not final as the former Omega X CEO is appealing, and the second trial will be held at the Seoul High Court.
Meanwhile, Omega X now manages activities under IPQ after mutually terminating the contract with SPIRE Entertainment in May 2023.
