They warned that tampering threatens the trust within the sector and highlighted investment instability.
The court ruling is expected to significantly impact the competitive landscape of the K-Pop industry.
[TV Daily Reporter Kim Ji-hyun] The Korea Music Content Association (MCA) has expressed concern over the court's ruling that validated Min Hee-jin's exercise of her put options. On February 20, MCA released a statement emphasizing the importance of trust and investment in the K-Pop industry, which operates on a model where agencies bear substantial risk and upfront costs in the uncertain early stages, sharing the eventual returns based on signed agreements.
MCA raised doubts regarding the coexistence of shareholders' duties outlined in corporate law with the act of 'tampering,' questioning if such actions undermine the underlying trust necessary for the industry to thrive. They cautioned that if leading figures in agencies utilize unfair means to siphon successful artists from established firms, it jeopardizes the stability of the entire industry.
The court ruled in favor of Min Hee-jin in her lawsuit against HYBE, mandating that the company pay her approximately 25.5 billion KRW. Subsequently, HYBE announced plans to review the ruling for possible appeal.
This case extends beyond the conflict between Min Hee-jin and HYBE, having significant implications for the entire K-Pop industry. At early stages where success is not guaranteed, agencies must take on considerable risks and investments, and the disruption of this trust can lead to catastrophic results. MCA's concerns further highlight the industry's instability.
'Tampering' poses a critical threat that transcends mere contractual disputes, jeopardizing the foundational trust in K-Pop. If such actions persist, they risk undermining the relationships that allow new artists and smaller agencies to thrive, creating a larger ripple effect across the industry.
The success of K-Pop hinges on trust and investment between artists and agencies. Thus, many are watching closely to see how this ruling could affect future investments and the competitive landscape of the K-Pop industry.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TVDaily
