The agencies of actresses Son Dambi and Jung Ryeowon have denied any involvement in a fraud scandal. On August 28, H Entertainment issued a statement clarifying reports that the actresses had got gifts from a man charged on racketeering charges.

Mr. Kim recently claimed to be a wealthy man from Guryongpo, a town in Pohang, North Gyeongsang Province, who had inherited 100 billion won ($86 million). He led a flashy lifestyle, flaunting an array of costly cars and boats, as well as luxurious pool villas and pensions.

He was arrested in April on charges of fraud, joint intimidation, and joint blackmail. Between June 2018 and January 2021, he is accused of embezzling large advance investments that he purported were for a squid sales business. He swindled his victims, who included the brother of a retired National Assembly member, a well-known newspaper columnist, and a private professor in Seoul, of 11.6 billion won ($10 million). The former National Assembly member's brother is said to have been conned out of 8.6 billion won ($7.4 million).

Mr. Kim is also accused of petitioning various influential figures by gifting them seafood, luxury items, golf clubs, cars, and other items. In addition to Mr. Kim, eight other people have been imprisoned on suspicion of violating the Anti-Graft Act.

According to media reports, Son Dambi's manager was hired as a company employee by Mr. Kim in 2019, and as a result of this connection, Mr. Kim gifted the actress with an expensive car, as well as luxury clothing and purses. It was also claimed that Mr. Kim and Son Dambi had a connection and that Mr. Kim had paid the 50 million won (approximately $43,000) that Son Dambi owed Jung Ryeowon.

When introducing him to Jung Ryeowon, Son Dambi was said to have given him a car. According to reports, Mr. Kim and Son Dambi's connection ended after this was revealed, and she decided to return the expensive gifts he had given her.

According to their agency, H Entertainment, Jung Ryeowon and Son Dambi have suffered serious damage as a result of the spread and reproduction of false reports, and the agency will take action to protect their artists from harm and make sure that people face civil and criminal penalties for spreading false reports and malicious comments online.