Prosecutors have launched an investigation into accusations of embezzlement made against K-pop sensation Rain, according to officials on Wednesday. The Seoul Central Prosecutors' Office confirmed the investigation department has started looking into a lawsuit filed last week by a fabric manufacturing company which has charged Rain and other officials of his agency with embezzlement and dereliction. Yesterday, seven shareholders of Rain's entertainment firm J.Tune Entertainment, including the singer and actor himself, was belatedly known to have been sued by the fabric firm. The fabric company claimed that it suffered financial losses from J.Tune Creative, a fashion affiliate of J.Tune Entertainment set up in 2008, which Rain is also the main model of. The plaintiff said it invested two billion won in the fashion firm but Rain and other shareholders of J.Tune Creative embezzled their money by falsely registering the company's stock assets worth 2.5 billion won and claiming Rain's modeling fees worth 2 billion. J.Tune has refrained from releasing an official response, saying they are in the process of determining the facts behind the case. Rain, whose real name is Jung Ji-hoon, is considered one of the most successful Korean stars in the entertainment business. He has lead a popular singing career throughout Asia and has expanded his acting career into Hollywood, appearing in action film "Speed Racer" and martial arts picture "Ninja Assassin" last year.

Asian pop star Rain, along with seven others, were sued by a businessman for alleged embezzlement amounting to 2 billion won, the amount which he invested in J. Tune Creative, a clothing line, in 2008. The businessman claimed that the accounts were manipulated that led to the company to post losses. J. Tune Entertainment, Rain’s entertainment company, denied that the star was involved in managing J. Tune Creative, saying that he was only a model of the company. In 2008, J. Tune Entertainment announced that it was establishing J. Tune Creative as an affiliate that became the vehicle in launching Rain’s “Six to Five” fashion line. The fashion line was launched in a star-studded event in Seoul, South Korea in December 2008. The label was intended to be launched in Asia, Europe and North America. Rain is fighting back and is threatening to file a defamation case against the businessman for dragging his name into the mess. The new case is threatening to sidetrack Rain’s comeback to the K-pop scene as the popstar is currently busy promoting his new album, “Back to the Basic”, on various Korean TV shows. Last year, Rain and JYP Entertainment, the star’s former agency, were ordered by a Hawaii court to pay Click Entertainment a total of $8.1 million in connection with a cancelled concert at Aloha Stadium in 2007. Rain and JYPE were found guilty of fraud and breach of contract by the court for cancelling the concert. Rain settled the case with the concert promoter in June last year after the verdict was announced.