Article: JC Group's bankruptcy...entertainment company Fantagio's bull run
Source: Yonhap News
China Real Estate Development company, JC Group, is facing bankruptcy. JC Group is a major shareholder of Fantagio, an entertainment label in Korea.
According to the South China Morning Post (SCMP) based in Hong Kong on the 10th, JC Group executives have been arrested by Chinese officials for illegal funding and fraud and the company itself is in bankruptcy crisis. Many of the executives including the current president are currently being investigated. Analysts say that illegal fundraising charges in China can amount to a maximum of life imprisonment which will be dangerous for the company.
Earlier, JC Group's Korea branch 'Gold Finance Culture' became the largest shareholder in October 2016 acquiring a 30% stake in Fantagio, a label that's home to artists like Seo Kang Joon, Cha Eun Woo, Ong Sungwoo, idol groups Astro and Weki Meki. Since then, JC Group has dismissed it's founder Na Byeong-joon and filled the board with Chinese CEO's.
At the time, when JC Group became the largest shareholder, some of it's artists like Kang Eun-na terminated their contracts out of concern of lack of expertise in the company. But Kang had to return back to Fantagio due to an unfavorable arbitration ruling against her. But it seems like a month later, the company is now facing bankruptcy.
Many are raising concerns about the future of Fantagio artists including idol groups Astro and Weki Meki who are still active.