‘KARA’ DISPUTE ENTERS ROUND 2—MASTERMIND BEHIND MEMBERS’ DEPARTURE IDENTIFIED

[ 1/25/2011 ]

【서울=뉴시스】이재훈 기자 = The forces behind the dispute involving the group ‘KARA’ have been revealed. The Korea Entertainment Producers’ Association(Chairman Ahn Jung-dae), an organization of record producers, announced on the 25th, “We have secured a list of the forces involved in KARA’s notification of termination of their exclusive contracts.” The association also released text messages sent to a KARA member by J, the head of a management company and one of the individuals previously identified as being behind the dispute. The messages stated, “Capable managers and vehicles are all ready,” and “Call anytime if something urgent comes up or you need anything.” The messages also stated, “Team Manager O will oversee the entire lawsuit, planning and marketing, and internal operations, while Director O and Department Head O will be responsible for all promotional activities.” They continued, “In addition to the three existing field managers who will handle practical duties, we plan to recruit two more experienced managers.” The association said, “KARA’s agency, DSP Media, has requested mediation from our association to resolve this dispute amicably.” It predicted that “this situation will have a considerable impact on the new Korean Wave market.” It added, “In connection with the recent KARA dispute, we requested information from Universal Music, the group’s local partner in Japan, regarding Japanese vocal performance royalties and the applicable distribution rate.” The association announced, “We received the results on the 25th.” According to the association’s findings, the distribution rate DSP pays KARA is 1.6~1.8%. The association explained that this exceeds Japan’s customary vocal performance royalty rate of 0.5~1% for new artists. The association pointed out, “Recent reckless statements by an organization with an unclear identity are only increasing confusion within the industry.” It continued, “That organization has even begun representing the positions of some KARA members and their parents. The fact that it appears to understand every detail surrounding this dispute raises suspicions that it may also be directly or indirectly connected to the KARA situation.” It stated, “We believe both KARA and DSP are victims. The division between KARA and its agency would be a major loss to the country and the cultural industry, so the association will actively participate in resolving this matter.” It emphasized, “In the future, anyone who approaches or entices entertainers under exclusive contracts for improper purposes or disrupts the industry will face strong action, including civil and criminal legal proceedings and expulsion from the entertainment industry.” The association’s announcement brought the rumored existence of outside forces sharply into public view. The dispute has now entered a new phase. Meanwhile, the meeting held that day between DSP Media and Han Seung-yeon(23), Jung Nicole(20), and Kang Ji-young(17), who had notified the management company of their intention to terminate their exclusive contracts, ended without progress. DSP stated that it was working with Han Seung-yeon and the other two members to find an amicable solution. The company said it had received their proposed terms and demands and was continuing discussions. Although detailed information could not be disclosed, DSP said its belief that all five KARA members should remain together had not changed. Han Seung-yeon and the other two members are reportedly demanding changes to the management team and a shorter contract period as conditions for returning to DSP. However, both sides have avoided commenting on these matters. On the 19th, Han Seung-yeon and the other two KARA members notified DSP through Landmark Law Firm that they were terminating their exclusive contracts, claiming that the agency had exploited them solely as a means of making money.