SM Entertainment goes under investigation for unfair contract terms officially!

[RaSHeLo]

Korea’s Fair Trade Commission (KFTC) has announced that they are currently investigating all celebrities bound to SM Entertainment regarding unfair contract terms, suggesting that “a second TVXQ scandal” like event may occur.

According to One Nation’s Jo Moon Hwan, it was revealed that KFTC is investigating cases of unfair contract terms in SME idols such as TVXQ (including Junsu, Changmin and Jaejoong who are currently in legal disputes with their management company), SNSD, Super Junior, etc. for a total of 53 SME celebrities.

Jo Moon Hwan stated that the question and answer document received from KFTC specified investigations for all SME affiliated individuals for reasons related to a delay in taking care of TVXQ’s legal case. KFTC expressed,

“Through this event all celebrities in SME will undergo investigations to see if their contract terms go against the law of established fair contract terms, which is why TVXQ’s legal dispute is being delayed.”

Additionally, the commission said regarding TVXQ’s case, “All related documents will be carefully reviewed and considered for an appropriate outcome,” not revealing at what point the case would be over.

As you readers know, SM Entertainment has recently experienced many difficult trials as three members in TVXQ and Super Junior’s Hankyung underwent legal battles for problematic contract terms such as its 13 year length and unfair distribution of album sale profits.

Signing unfair contract terms with its employees is not only SME’s problem. Last December, KFTC requested 407 large agencies to address unfair contract conditions and undergo investigations. However, one month after this request was issued (until January) only 11 agencies reported their conditions and decided to take prompt corrective action measures, giving a huge shock to KFTC.

From April to May, YG Entertainment and Star Entertainment were also investigated along with 20 other companies. The results?

19 companies with 230 celebrities were found with contracts made up of various unfair conditions. These conditions were not about appearance limits but rather about the celebrity’s individual affairs such as telling agencies their current location and not being able to leave.

This investigation will concentrate on protecting weak celebrities who are powerless to request their affiliated large agencies for protection rights that they deserve.

Cr: SSTV + Allkpop + kpoprants

[Guest Natsune619]

This is really good... I've always been slightly annoyed whenever I bought a album/single, cos SO LITTLE of the money goes to the artists themselves

I really really hope things change soon so that the artists can recieve more humane contracts. They don't deserve this.

Btw is YG being investigated!? I thought they were one of the only semi-nice companies... I guess not then

[Guest blueberries8213]

^ I think they're playing it safe, so they're investigating most of the companies, regardless of rumors of fair contracts. Which is really good, in my opinion.

[Guest f0reveralways]

From April to May, YG Entertainment and Star Entertainment were also investigated along with 20 other companies. The results?

19 companies with 230 celebrities were found with contracts made up of various unfair conditions. These conditions were not about appearance limits but rather about the celebrity’s individual affairs such as telling agencies their current location and not being able to leave.

Btw is YG being investigated!? I thought they were one of the only semi-nice companies... I guess not then

YG + Star + 20 other companies = 22 companies

19 companies were found with "unfair" conditions.

That means 3 are found with "fair" conditions. That leaves a possibility for YG to be one of those 3

Besides, the term "unfair" is vague and open to interpretation. What may seem "unfair" to one person may seem "fair" to another.

[cassiopeia1001]

oh tsch, about time finally.

i guess they would check EVERYBODY just to come clean. once and for all.

[Guest JWonNie]

YG + Star + 20 other companies = 22 companies

19 companies were found with "unfair" conditions.

That means 3 are found with "fair" conditions. That leaves a possibility for YG to be one of those 3

Besides, the term "unfair" is vague and open to interpretation. What may seem "unfair" to one person may seem "fair" to another.

I read somewhere that YG had a "slave contract,"

but according to rumors, they fixed it this year...

so not sure if they are... but yea :]

your one & only

-jwon

[tissuepaper]

FINALLY!!!!! DBSK FTWWWW

[Guest haemin13]

good that they're investigating this. hopefully they also work on giving the celebrities their fair share of their personal lives. well,at least a bit of it.

[Guest _escape.reality*]

oh yes. about time they did something about this !

these artists who work their butt off deserves a fair share of the money they earn.

[Guest -hokage-]

they need to have like 7 year contracts and then RENEW them. 13 yrs omg LOL

and i heard other rules like "no serious datign allowed"

anyways i agree they need ot distribute the profit of album selling more fairly.

Korean celebrities work there bums off and seriously when they start at such a young age 16 or whatever.. and they only get 3-4 hrs of sleep thats hard.... imagine doing that for 13 yrs.

[Guest evilgary]

finally SM gets it deserved retribution. they are treating singers as their slave and giving them their rightful earnings

[jaefan]

im really curious what will happen to the agencies when they are found to have unfair contracts. But it's not like they don't know SME's contract has some really bad terms for the artists(in terms of the artists' profits) since they saw some documents from the TVXQ's case, didn't they?

[Guest wahiiida]

yes. i so like this very much.

much consideration has to be done to this case, to all SM artist.

hoping that justice will appear!

and hoping for the best future for all SM artist.

hey! they are human toooo. they need to be treated fairlyyyy.

love all sm artist.

[Guest `prince]

FINALLY!!!

thank you JunSu, JaeJoong, YooChun, & HanKeng

I've been waiting for something like this to happen since I heard about that whole thing with H.O.T.

NEARLY FIFTEEN YEARS ALREADY FTW.

congratulations, aspiring artists in Korean market can breathe a little easier now

[Guest riehae]

i don't know how this will end...

but for me, as long as they love what they do...

and still enjoys it... desire for it...

it's not a problem...

they will be ok...

one way or the other...

[Guest you&me.]

i feel so bad for hankyung. i wonder how things are with him now

[Guest charan]

"Wait and See

Hopefully next time when that "change"

Artist can say for the public when they not have "air contract"

and can show their true feeling when the company treat them "unfair"

[AsianL0ve]

great.

justice to all

[Guest <3goesDOKIDOKI]

i feel bad for artists with crappy contract terms

but at the same time they should've looked over their contract more carefully before signing it

there's always going to be a cost for money and fame

[Guest lovesong3208]

*throws confetti into the air*

FINALLY

my goodness. they delayed this long enough! now why couldn't they do this right when the TVXQ

fiasco started up?