Melon Suspected Of Embezzlement While Kakao M Claims They Are Unaware Of Details
South Korean music streaming service Melon is currently under investigations for embezzling millions of dollars in royalties.
According to various reports, there have been suspicions of Melon embezzling royalties from copyright holders through a shell company known as LS Music, reportedly established some time between 2009 to 2011.
The prosecution recently conducted a search on Melon’s headquarters located in Samsung on May 27th.
Kakao M, the current owner of Melon, has released an official statement admitting that there was indeed a search conducted by the prosecution, but have stated that they are unaware of the details regarding the investigation. Kakao M has stated that because they acquired Melon in 2016, and the investigations are looking into matters that happened before that period, they did not have any other statements to make regarding the current situation.
Stay tuned for updates!