K-Pop Industry Calls For Strict Observance of Exclusive Contracts

K-POP / 연합뉴스 / 2025-02-27 13:53:22
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▲ Choi Kang-ho, secretary-general of the Korea Music Content Association, delivers the keynote speech at the

 

SEOUL, Feb. 27 (Yonhap) -- Five major organizations representing the South Korean music industry have urged the government to implement balanced measures regarding tampering—the controversial practice of preemptively contacting artists before their contracts expire.

 

These industry associations—including the Korea Management Federation, Korea Entertainment Producers Association, Korea Music Label Industry Association, Korea Music Copyright Association, and Korea Music Content Association—held a press conference on Thursday in Seoul, calling for fair protection of music producers' rights.

 

Choi Kwang-ho, Secretary-General of the Korea Music Content Association, emphasized the importance of upholding exclusive contracts and respecting legal rulings in disputes.

 

"The foundation of Korea’s pop music industry is the exclusive contract between agencies and artists," Choi stated. "However, some unethical agencies, music producers, and major financial backers persuade artists to break these agreements. Fans encouraging artists to leave their agencies and the government’s increasingly regulatory stance further weaken the position of entertainment companies."

 

He stressed, "Disputing parties must endure the judicial process. No one can unilaterally terminate an exclusive contract before a court ruling. Once the court makes its decision, all parties must respect the outcome. We urge the government and National Assembly to establish fair and balanced regulations."

 

▲ Choi Kang-ho, secretary-general of the Korea Music Content Association, delivers the keynote speech at the "press conference for fair rights protection in the music industry" held at JW Marriott Hotel in Seocho-gu, Seoul, on February 27, 2025. (Yonhap)

 

One case introduced at the conference involved an independent agency that invested in an unknown singer. After gaining recognition through a TV program, the artist received offers from another agency, including financial incentives and career opportunities.

 

Choi warned, "Tampering and contract violations are not isolated incidents but are spreading like an epidemic from major to independent agencies." He further noted, "Since the late 2010s, Korea’s music industry has expanded into a global market. It is time to revise the standard exclusive contract to ensure the industry's long-term sustainability."

 

Industry professionals at the conference stressed the significant financial risks agencies take in debuting new artists, calling for concrete measures to prevent tampering.

 

▲ Participants chant slogans at the "press conference for fair rights protection in the music industry" held at JW Marriott Hotel in Seocho-gu, Seoul, on February 27, 2025. From left: Kim Chang-hwan, president of the Korea Music Content Association; Choi Kyung-sik, president of the Korea Music Copyright Association; Im Baek-woon, president of the Korea Entertainment Producers Association; Park Kang-won, director of the Korea Music Label Industry Association; and Lee Myung-gil, director of the Korea Management Federation. (Yonhap)

 

Choi Jae-woo, CEO of F&F Entertainment, which manages the girl group Eunice, explained, "Even small and mid-sized agencies invest at least 10 billion to 100 billion won in pre-debut marketing and album production. We want to create and promote K-pop in a fair and unbiased environment."

 

Lee Nam-kyung, director of the Korea Management Federation, pointed out that while the entertainment landscape has evolved into a more collaborative relationship between artists and agencies, the current standard exclusive contract still places most obligations and responsibilities on the agencies. He proposed establishing a formal mediation period in contract disputes.

 

Kim Myung-soo, an executive of the Korea Entertainment Producers Association, added, "Developing new artists requires tens of billions of won per project. Considering that over 90 percent of the market consists of small and medium-sized agencies, the financial risks for producers are immense."

 

He suggested legal measures such as prohibiting competing activities during the remaining contract period, ensuring that tampering attempts become futile and protecting the industry’s stability.

(C) Yonhap News Agency. All Rights Reserved

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