KEAST major shareholder and actor Bae Yong-joon was sued by a health supplement maker on fraud charges.
Gorilla Life Way, a company in which the Korean star holds 95 per cent of shares, allegedly appropriated 2.5 billion won ($2.4 million) from the supplement maker while processing an exclusive deal to export the Korean red ginseng product to Japan.
But KEAST issued an official statement alleging that the supplement maker was "maliciously bringing down Bae's reputation as a top star to spread their claim."
"We will not remain silent about such deed, and will take a stern legal action, including suing them for false accusation charges," the statement added.
The health supplement maker filed the case at the Northern Seoul Prosecutors' Office on Sept. 19.