MADTOWN Plagued by Misfortune as GNI Entertainment’s CEO Is Charged With Fraud

MADTOWN, a seven-member idol group that debuted in 2014, recently moved from their mother company to GNI Entertainment. While some were wary of the change, many fans had hopes that GNI would promote the boy group more effectively than their previous label. Unfortunately, GNI has already proven that wishful thinking to be in vain after the CEO was reportedly charged with 32 counts of fraud and other similar crimes. His case is currently undergoing investigation.

In December 2016, news quietly broke that MADTOWN planned to transition from their original label, J.Tune Camp, to GNI Entertainment. Prior to the shift, the group’s fanbase had seen a boost due in part to the athletic Jota’s newfound popularity on shows like “Cool Kiz on the Block” and “Law of the Jungle.” He later had a cameo on the drama “Weightlifting Fairy Kim Bok Joo” and paired with model Kim Jin Kyung for “We Got Married,” which only furthered his name recognition. The group as a whole also scored modeling contracts, and the attention being shown to them left fans somewhat confident that MADTOWN would start seeing success on a larger scale.

madtown-byc-jota-and-ho
Jota and H.O for BYC.

Now, about a month after MADTOWN’s new contracts had been finalized, GNI’s CEO has been caught in a fraud scandal involving the misuse of monetary investments. E Daily released an article on Feb. 22 concerning the details of CEO Seong Cheol Ho’s charges, and the outlook appears grim. It may be a case of bad timing, but GNI’s official website is also currently down.

MADPEOPLE, members of MADTOWN’s fandom, have understandably shown concern for the group’s future after these unsettling events. On a Feb. 13 V Live broadcast, Daewon teased that the group was working on new music and fans wouldn’t have to wait long. With Seong Cheol Ho’s alleged fraud, however, it seems likely that any comeback that may have been on the horizon will be postponed.

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