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| yna@yna.co.kr 2023-08-29 09:32:57
K-pop industry prepares war against poaching amid Fifty Fifty controversy
SEOUL, Aug. 29 (Yonhap) -- K-pop industry has embarked on discussions to establish measures to fight rival agencies’ star-poaching schemes amid disputes over a hit girl group’s exclusive contract, music industry sources said on Tuesday.
In the wake of the recent court ruling in favor of Fifty Fifty’s agency Attrakt, K-pop agencies joined hands to take down what is known as “tampering,” or other agencies’ pre-contractual approach to their artists during exclusive contract period, they said.
The move comes a day after the Seoul Central District Court denied the request Fifty Fifty filed on June 19, claiming Attrakt failed to fulfill its contractual obligations, such as providing financial documents and caring for their health.
Last week, key entertainment production organizations, including the Korean Management Association, the Korea Entertainment Management Association, and the Korea Producers Association, met with Yu In-chon, the presidential special adviser for culture and sports, do address the matter.
These organizations will hold follow-up discussions this week to mull sanctions to prevent such practices.
They have argued that the provisions of the standardized exclusive contract, established 14 years ago for performing artists, have the potential to be misused in the so-called 'poaching' of entertainers.
The current standardized exclusive contract, recommended by the government, is based on terms created by the Fair Trade Commission in 2009. Although the culture ministry made some improvements to the terms in 2018, the content remained largely unchanged. Industry insiders point out that this standardized contract fails to reflect the changed dynamics between artists and agencies in the rapidly growing K-pop industry.
As emerging groups, like Fifty Fifty, achieve success within their first 1-2 years, the power dynamics between rookie artists and entertainment agencies have shifted from the past.
A source related to Korean Management Association said, "The current standardized contract was designed to protect entertainers from receiving unfair treatment from companies in the past. However, it does not align with the present entertainment environment, with most clauses specifying the obligations of the agency. This structure makes it easy for entertainers or external agencies to exploit it to break existing exclusive contracts."
Misused clauses range from the provision of financial data by agencies to general cost-sharing obligations, the source added. One common scenario involves demanding contract termination, claiming the agency failed to provide complete financial data.
Due to the vague criteria about how detailed the cost and revenue information should be in financial reports, it can be maliciously used as grounds for contract termination, the source said.
Another industry insider pointed out that some contracts stipulate that agencies are fully responsible for costs incurred during a trainee's pre-debut period. Such stipulation has been exploited by terminating contracts much later, citing this expense issue, the source claimed.
Other industry sources emphasized the need for the standardized contract to incorporate the responsibilities and obligations of both agencies and artists.
To prevent tampering, these organizations called for implementing mandatory grace periods for artists who have experienced exclusive contract disputes before entering contracts with other agencies.
They also proposed introducing a system similar to the “FA (free agency) system,” commonly seen in professional sports, where artists could move with proper compensation and agencies would receive compensation when artists transfer.
A source related to Korean Management Association stated, "Rather than breaking exclusive contracts through legal disputes and transferring to other companies, there is a need to establish a system where, if an artist fulfills certain obligations, they can enter free contracts. We should also discuss the possibility of introducing an FA system where the original agency is compensated when transfers occur."
With the heightened societal interest surrounding the “Fifty Fifty controversy,” the government is also considering related countermeasures.
Culture Minister Park Bo-gyun on Friday said during a parliamentary plenary session, "We are closely observing the situation from the perspective of fairness and are working on developing countermeasures."
Apart from the legal realm, Fifty Fifty's hit song “Cupid” continues to succeed on the Billboard Hot 100 chart, maintaining its success for 22 consecutive weeks. K-pop critics attributes the song's success to its inherent popularity, rather than relying solely on fandom, as it continues to perform well despite internal issues or public sentiment.
Music critic Jeong Min-jae noted, "'Cupid' achieved its reverse popularity (“yeokjuhaeng”) on the charts based on the general public's actual enjoyment rather than just fan support. Since the initial response was due to the song's appeal, it has maintained its success regardless of internal group controversies."
jwc@yna.co.kr
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