Prosecutors cleared the chief of Sidus HQ, a major entertainment agency, of replicating a cell phone of top actress Jeon Ji-hyun, 27, to track her phone calls and text messages.
Sidus was investigated for alleged hiring an expert to access phone records and messages of the actress in late November 2007, shortly before her contract with the company was to expire.
Sidus CEO Chung Hoon-tak and two other executives were under investigation for eavesdropping on Jeon, who signed with Sidus while still in high school more than 10 years ago. The outside expert, who was hired to help copy and rig Jeon's handset, was given a one-year jail sentence last month.
``There was a lack evidence that he colluded with those who actually participated in replicating Jeon's phone,'' an official of the prosecution office said.
However, the two other executives were indicted without physical detention on charges of doing so.
The controversy surrounding her management company raised not only ethical questions about invasion of privacy but the agency's excessive control over emerging celebrities through unfair, long-term contracts. However, Jeon renewed her contract with Sidus HQ last month, citing strong ``trust and loyalty'' with the agency.