As reported by Korean media outlet TV Report, Polaris Entertainment has been raided by police and its parent company Ilkwang Group shut down by Korean authorities and is being investigated for fraud.
The president of Polaris Entertainment Lee Gyu Tae has been arrested and his home searched by the Korean government and IRS. This is the same executive who has recently been embroiled in controversy following artist Clara filing a sexual harassment lawsuit against the company.
As Koreaboo reports, “Ilkwang Group is a manufacturing company that is involved in government contracts for South Korea, including the Korean military, airfare and navy. The company also owns multiple subsidiaries involved in all sides of business, such as Polaris Entertainment.” Under the fraud charges, the company in being further investigated for the embezzlement of funds.
Rumours are emerging that Polaris Entertainment (Ladies' Code, Clara, Iron) was also shutdown, however, this is yet to be confirmed.
In 2014, Polaris Entertainment tragically suffered the loss of two Ladies' Code members EunB & RiSe who lost their lives in a car accident. After their hiatus, the three surviving members were said to be preparing for a comeback.
Polaris Entertainment’s new rookie artist Iron, who featured on Show Me The Money 3 and topped Korean music charts in September 2014 with his song, "Poison" planned to debut next week and his future now remains uncertain.