SM Entertainment ordered to revised all their artists contracts
December 25, 2010 2 Comments
I’m sure all of you knew about this issue especially DBSK (Tohoshinki/TVXQ) was also been involved in this issue. SM Entertainment was ordered by the FTC (Fair Trade Commission) to revise their unfair contracts to all of their artists.
SM Entertainment is a talent agency, producer and publisher which was founded by Mr. Lee Soo-man. The initials “SM” was initially came from the founder Soo-Man but was now taken for the initials of “Star Museum”. SM Entertainment’s artist lists includes some of South Korea’s Top Rating Music Groups like Shinhwa, f(x), Super Junior, Girls Generation (SNSD), SHINee, BoA, and TVXQ (DBSK).
July 2009, three of DBSK members namely Hero, Mickey and Xiah submitted a complaint about the so-called “Thirteen Year Contract” by SM Entertainment to the Seoul Central District Court. The news spread like wild fire and made SM Entertainment’s stock price dropped to over 10%.
The Seoul Central District Court favored the three DBSK members over SM Entertainment and claimed that the contract was unfair and the members were left out of proper profit distribution.
“We issued SM Entertainment a warning to voluntarily correct the unfair exclusive contracts that their artists, as well as trainees, are bound to. SM is to reduce all contract lengths by three years,” FTC said in a statement.