Milagro Entertainment's CEO, Young Tak, has acknowledged to sajaegi (the manipulation of music charts and streaming counts by an artist's agency).

After investigating him for sajaegi, the Seoul Metropolitan Police Agency referred Milagro Entertainment CEO Lee Jae Gyu to the prosecution with a request for indictment on November 1.

CEO Lee Jae Gyu was accused with paying a marketing A 30 million won (about $25,370) to promote the popularity and profit through streaming of Young Tak's 2018 song "Why Are You Coming Out From There." A had been brought to the CEO as someone who could alter music streaming stats. However, when the song's rating did not improve significantly, CEO Lee Jae Gyu requested a refund and got 15 million won (about $12,680) from A.

While the authorities were discreetly investigating sajaegi incidents in response to a media story in February 2020, they got a voice recording of B, to whom CEO Lee Jae Gyu had transferred management authority, confessing to an investor that they had planned to influence Young Tak's song's chart rating.

On November 4, Young Tak's agency's CEO Lee Jae Gyu issued a statement apologizing for the situation and clarifying that Young Tak was not aware of the sajaegi. Read the following statement:

Hello, this is Lee Jae Gyu, CEO of Milagro Entertainment. First and foremost, I would want to express my heartfelt regret for generating such concern and anxiety with such an awful experience.

I have admitted to all counts in this case, and I am profoundly pondering on and regretting [my acts]. I have engaged in the inquiry faithfully and given all of the facts.

In 2019, I discovered a way for streaming music, and in my eagerness to share an unknown singer's song with as many people as possible, I lost my reason and did something I should not have done. Whatever the cause, I am profoundly reflective on making a mistake as the CEO of an agency and am painfully remorseful.

Furthermore, it was my discretionary choice to do so, and at the time, the singer couldn't become involved in any of the company's operations other than elements linked to their music and planned events, therefore he hadn't been notified about this.

I am deeply sorry for doing a harm to an artist who has received recognition for his skills through an audition program after years of being a no-name.

I truly apologize to the artist, who has suffered as a result of my wrongdoing, as well as to the Milagro personnel and fans who have supported the singer.