"In exclusive contracts, the agency is referred to as the 'dominant' party. But is it time to discuss whether they truly hold that position?"

On September 14, the Korea Music Label Industry Association (KMLIA) held a seminar at the MPMG building in Mapo-gu, Seoul, titled 'Seminar for the Advancement of the 2023 Popular Music Industry.' The event facilitated open discussions on contract disputes between small and medium-sized agencies and musicians, as well as support programs and policies for them.

The main agenda of the seminar was to examine any systemic issues related to the recent exclusive contract dispute between the group FIFTY FIFTY and their agency, Attrakt, especially concerning allegations of tampering, and to propose alternatives. The most urgent request from industry professionals was the need to revise the standard exclusive contract.

Yoon Dong-hwan, Chairman of KMLIA, stated, "The current standard exclusive contract was created 15 years ago. It needs to be updated to reflect the current situation." He added, "We need to strengthen government-level protection and support so that small and medium-sized agencies can operate their businesses safely. Many believe that amendments to the Promotion of Popular Culture and Arts Act are necessary to protect these agencies, especially in light of the tampering issues revealed during contract disputes."

Associations related to the popular music industry, including the Korea Management Association, Korea Entertainment Producers Association, and Korea Entertainment Management Association, unanimously agreed that tampering issues have existed in the entertainment industry for a long time and have come to the forefront due to the FIFTY FIFTY situation. Recently, controversies surrounding tampering have arisen with artists like EXO-CBX, former LOONA member Chuu, and actor Lee Jung-hyun.

Furthermore, in the indie scene, such incidents are even more frequent, often happening blatantly. The problem is that smaller agencies, due to limited financial resources, cannot resort to lawsuits and end up losing their artists. The original agency inevitably faces significant losses.

A, a label representative who once produced a song for an idol group, said, "Major production companies are systemically well-organized, but many small labels are not. Trust with the artist is our top priority. Even with a solid contract, if trust is broken, disputes arise." A added, "Recently, entertainment companies are transitioning to an agency concept because the binding power of contracts has diminished. If a contract breaks, the risks increase, so they operate more like agencies."

B, a producer currently in a legal dispute regarding a contract with an affiliated artist, questioned the clear distinction of 'dominant' and 'subordinate' parties in the standard exclusive contract. B pointed out, "Even if a temporary injunction is issued, the artist often signs an exclusive contract with another agency and continues activities. This is also the case with B."

Industry insiders point out this as a structural limitation of the standard exclusive contract. Regarding this, attorney Nam Sang-chul from Law Firm Ji Hyang said, "Whether an injunction is granted or not, if there's contact with another company during the process, it should be considered a breach of the exclusive contract." He added, "If the exclusive contract is terminated, previous actions might be deemed legal, but if the contract remains valid, there's a high likelihood of issues."

Various music-related associations collectively expressed concerns about laws and systemic issues that aren't industry-specific. They emphasized the need for a collaborative solution-seeking approach involving the National Assembly, government, and related agencies. The first step, they believe, should be revising the standard exclusive contract. However, resolving systemic issues isn't the end. Chairman Yoon stated, "I believe that conflicts between artists and agencies can't be completely prevented by laws or regulations. For the industry to grow, trust between the two parties needs to be established. Only when a relationship built on a solid system and mutual trust is formed can Korea's cultural industry truly captivate the world."

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