Actress Clara has been cleared of allegations of blackmailing Lee Gyu-tae, chairman of her former agency Polaris Entertainment, prosecutors revealed Wednesday.

In clearing her, the prosecution said her actions were not criminal and indicted Lee for threatening the 29-year-old actress. 

Lee and Clara have been embroiled in a convoluted legal battle ,with each accusing the other of blackmail.

In her suit, Clara claimed that she asked for her contract to be terminated due to Lee sexually harassing her.

According to Clara, Lee said that he needed to know everything about her down to her menstrual cycle.
 

In response, Clara messaged Lee saying that she would report him to the police unless her contract is terminated.

While Lee claimed that Clara was threatening him, the prosecution deemed that such words were not criminal and the she had no malicious intent.

“The claim that (Clara) felt sexually degraded cannot be seen as being exaggerated or malicious. The statement that (Clara) would go to the police is not outside the socially acceptable boundaries,” a prosecution official told the local media.

While investigating the complaint against Clara, the prosecution uncovered that Lee had made threats against the actress.

According to the prosecution, Lee demanded that Clara sever ties with her manager and made threats implying physical violence.

“It may be scary to hear but (I) could cut your neck in a moment. (I) could make you disabled, anything is possible,” Lee allegedly said to Clara on Aug. 22 last year.

He is also said to have emphasized his connection to the authorities citing his experience in the police force and the national spy agency. The prosecution also revealed that Lee claimed that he could monitor Clara’s messages, and that the actress was at one point unable to leave her home for the fear of being watched by Lee.

In an unrelated case, Lee has been indicted in connection to corruption within the defense industry.

By Choi Hee-suk (cheesuk@heraldcorp.com)