Singer Kang Daniel signed with a newly-established agency called Artistic Round Alliance (ARA) after shutting down his self-established agency Konnect Entertainment last month due to embezzlement by a major shareholder.

"Kang Daniel had been offered contracts by major global labels and agencies after his contract ended with Konnect Entertainment, but he chose to keep his loyalty to the staff he had been working with," ARA said in a press release.

"We promise to provide him with our fullest support so that he can focus on his activities as an artist and communicate with fans."

Earlier this year, Kang reported a majority shareholder of Konnect Entertainment for allegedly forging his signature to sign a 10 billion won ($7.2 million) advance music distribution contract without Kang’s knowledge and withdrawing at least 2 billion won from the company's account through overseas remittances and business income processing methods without any proper approval from the CEO, board resolutions or shareholder meetings, according to Kang.

The agency began closing down while Kang pursued legal action against the major shareholder. The agency was founded by Kang in June 2019 and managed artists like Chancellor, Yuju of girl group GFriend and the dance crew We Dem Boyz.

Kang debuted in 2017 after winning first place on Mnet’s hit K-pop audition show “Produce 101." He and 10 other finalists formed the project boy band Wanna One, which disbanded in early 2019.

Kang established Konnect Entertainment and debuted as a solo artist in July of the same year, releasing songs like “Touchin’” (2019), “2U” (2020) and “Paranoia” (2021).

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]