KG Crown and JYP Entertainment have officially parted ways, concluding months of conflict and a contract dispute. The announcement, made on August 8, 2025, confirms KG's departure from VCHA, the multinational girl group formed through the "A2K" (America2Korea) audition program.

The dispute between KG and JYP Entertainment began last year when KG alleged mistreatment and expressed her desire to leave the group. She filed a lawsuit to terminate her contract with JYP Entertainment, citing subpar working conditions and staff-related issues. KG claimed that these conditions led to very little pay and that she wanted to explore a different path focused on songwriting and production. In December 2024, KG voiced her concerns on Instagram, pointing to working conditions that allegedly led a member to attempt suicide and an environment that encouraged eating disorders and self-harm. She clarified that she wasn't blaming individuals but felt the issues were deeply rooted in the K-pop industry.

JYP Entertainment initially denied KG's claims, with JYP America expressing regret over her decision to make public statements that they considered "false and exaggerated". The company stated that KG's actions had caused significant harm to the other VCHA members and JYP USA, who were diligently working on their upcoming album and projects.

However, recent reports indicate that both parties have reached a mutual agreement to end their contract. KG announced the resolution on her Instagram, stating, "JYP America and KG Crown have mutually agreed to part ways as she concludes her journey with VCHA. Both parties sincerely wish each other all the best in their future endeavors. Thank you". It is currently unknown whether KG dropped the lawsuit or if they settled outside of court. It's also unclear if JYP Entertainment will pursue further action regarding her contractual obligations.

The resolution followed a mediation session held at the California Superior Court, where many of JYP's arguments were reportedly accepted. KG then agreed to withdraw her lawsuit, and JYP did not object to the settlement.

Following KG's departure and a previous announcement regarding Kaylee's departure due to health issues, the remaining members of VCHA – Lexi, Camila, Kendall, and Savanna – will continue promoting under the new group name, GIRLSET. JYP Entertainment announced the rebranding of VCHA to GIRLSET on August 7, just a day before confirming KG's exit.