[TRANS] 091104 Unlawful Contract Controversy SM Ent, Will They Change Their Stance?

Representative Kim Young Min read his statement

At the press conference, SM representative Kim Young Min stated, "If the law or the government sets new standards for exclusive contracts, we will actively follow these."


"If the law sets new standards for exclusive contracts, then we will actively follow these standards."
SM Entertainment, which is caught in an unlawful contract controversy with one of its celebrities,is garnering attention for saying that as long as the law sets or a public organization authenticates the standards for exclusive contracts, the agency would be actively willing to follow such standards.

At the press conference at the 63 Building in Seoul on the 2nd, SM representative Kim Young Min stated, "We would like the political offices related to this industry such as the Ministry of Culture, Sports and Tourism, the Fair Trade Committee, and National Assembly to come together to create new standards for exclusive contracts that will be set by the law or have public organizations authenticate the standards so that these standards are accepted by the law." He also stated, "(If the standards are made in such a way,) SM is actively willing to follow these standards."

Kim continued on by promising that, "If these new standards are accepted by the law, SM will change all of its contracts with its artistes to adhere to the new standards."

Kim also said, "Unless there are contract standards that protect the people involved by law from the time the contract is made until the contract is terminated, and unless such standards are followed, the confusion that is happening currently will only repeat itself."

"If they don't want their words to be empty words, they must secure their sincerity... Follow the recommendations from the Fair Trade Committee first."

But organizations and the public are split over what SM has said. Professor Lee Dong Yeon of the Korean National University of Arts stated, "For SM's declaration to not become empty words, they must prove their sincerity." Professor Lee also stated, "If we go by SM's theory, the current recommendations set by the Fair Trade Committee can be ignored as they do not have legal forced upon others, and SM would follow the news standards if they are legally forced upon the agency. This statement makes one suspicious of the agency's sincerity." Professor Lee also said, "If SM really has the thought of doing what they said they would, then they should adhere to the recommendations of the Fair Trade Committee first and then follow any new standards that are set by the law."


"There is a need to work on respecting the rights of celebrities as well as an effort by the agency to change."


SM Entertainment's President Kim Young Min stated at the press conference held on the 2nd that, "SM has changed clauses regarding compensation and contract period three times in 2002, 2007 and 2008 with the corrective actions and recommendations of the Fair Trade Committee," and "It is absurd to say that such a contract that has been fixed numerous times is called a 'human rights violating,' 'slave contract' and 'antisocial contract'."

However there is retaliation to his statement that says, "If a contract that has been changed three times is in such a state, one can surmise just how bad the original contract was."

After the press conference, one fan said, "Although the root cause of this dispute is the unlawful contract and unfair treatment of the group, SM keeps attempting to draw people's attention away from the root cause," and "I want to ask them if they themselves think that the current contract is really fair and just."

Representative Kim Myung Shin of the Culture Yeon University stated, "There is a need to work on respecting the rights of celebrities as well as an effort by the agency to change," and "The agency itself must work to move our entertainment industry away from the perpendicular relationship it is in."

Representative Kim also said, "A large agency such as SM has the responsibility to set an example as it greatly contributes to mass culture in Korea," and "I hope they show us a mature side that sincerely thinks over this situation and accepts their responsibility to further the development of the Koran entertainment industry."

She also said, "I hope this dispute does not stop as an argument between a large agency and its celebrity, but moves on to be a stepping stone towards a better management system that protects the rights of celebrities, creates fair contracts and has transparent income division."

There are voices that say that in order for these wants to become reality, both the agency and the celebrity must come to a compromise that suits both sides.

Professor Lee stated, "In the view of the agency, it must stop seeing its celebrities as mere tools or products and must engage in a parallel and equal relationship. The celebrity must move away from thinking of personal profit and must think about improving the cultural content of the nation."


Source: [oh my news+DNBN]
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[TRANS] Unfair contract dispute, SM has changed its stand?

SM Entertainment CEO’s Kim Young Min, who is involved in the ‘unfair contract’ dispute with his artistes, has recently announced a new contract policy, and that it will be put into action once it gets approved by the related authorities.

SM Entertainment representative, Kim Young Min, who attended the press conference which was held on the 2nd of November 2009 at 63 Tower, has expressed, “We would collect all comments from music and entertainment industries, related government departments, cultural and tourism board, fair trade departments, educational circles and legislative bodies, based on the law to adjudicate a new contract policy. After the approval from the respective authorities, we would then put it into action. Then follow it (new contract policy) enthusiastically.”

Kim agreed, “If we are able to come out with a new exclusive contract policy based on the law, SM would like to re-contract with all current artistes based on it.”

Kim also expressed, “Under the new exclusive contract, the moment it’s signed it would be protected till the contract ended, if not the current situation would repeat over and over again in the future.”

“In order to prove that what have just I said is nothing but the truth, we would first like to take the advice from the impartial committee,” he said.

But, everyone was not able to fully believe this announcement by SM Entertainment. Professor Lee from Korea Art University stated, “If SM do not wish to have what they have just said to turned into nothing, then they should assure them.” He continued, “Based on what SM have said, they do not wish to fully take on the advice from the impartial committee, but to forcefully come out with a new contract policy, which was questionable (their announcement).”

Professor Lee ended, “If SM was really sincere about this, they should work on the new contract based on the advice and not vice versa, and then to get it approved by the representative authorities.”

Source: OhmyNews + OhMicky
Translation: sshutingg @ OneTVXQ.com
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[NEWS] Money war (20): Probe finds entertainers frequently in bum deals

After three of the five members of the Korean pop band Dong Bang Shin Gi, a k a TVXQ, took legal action against the group’s management agency, S.M. Entertainment, on July 31, claiming an unfair contract, officials began examining how other top groups are being managed.



What they’ve found was sometimes startling. Yuna, a member of a band called Girls’ Generation that is under the same agency, is in a 13-year contract similar to the ones claimed by the three TVXQ complainants.

A member of Super Junior, a 13-member pop band managed by S.M., cannot leave the company for between five and 13 years.

“Even though I want to transfer to another management agency, it is not easy because of the long contract period and a large penalty I would have to pay,” the member said during a phone interview with the daily newspaper Ilgan Sports. “Since each member receives 1/13 of total profit earned from the band’s record sales, individual income is not that high.”



Members of the Wonder Girls, a five-member girl band under JYP Entertainment, have signed an exclusive 7-year contract.

Members of pop groups Big Bang and SS501 are locked into 5-year contracts by YG Entertainment and DSP Entertainment, respectively.

During its investigation into 20 management companies starting in April, the Fair Trade Commission has found unfair contract clauses for 230 entertainers managed by 19 agencies.

Included in such clauses are ones mandating that entertainers have to report their whereabouts to the manager at all times, contractors are not allowed to get any job in the entertainment industry after terminating contracts and contractors cannot retire without authorization from the manager.

Following the investigation, large agencies have completed either renewing or revising contracts and small and medium companies are in the process of doing so. So far, most legal disputes have been between agencies and actors and actresses rather than singers. “The reason why controversies over unfair contracts among singers have not surfaced is that within Korean pop music, there still exists a custom of running the business by verbal agreement rather than strict contract clauses,” said an executive official from an agency who asked not to be named. “Many new singers think that it is hard to become a star if they file complaints against their companies. I believe there are a lot of entertainers suffering from unfair contracts.”

The official also said that members of idol pop bands are mostly teenagers when they sign contracts and have to serve two to three year apprenticeships. They have no choice but to accept unfair contracts because they will not have a chance to debut if they fail to satisfy managers during their training period.

Many experts say disputes between agencies and entertainers occur because agencies try to make up for initial investment costs they expend in promoting idol groups. Also, some budding stars fail to make it despite the investment, leaving the agencies holding the bag. Agencies complained that it is difficult to run the company when contracts are revised after an entertainer becomes popular because of various investment costs.

Others see things differently. “If Korean management agencies keep on taking the lion’s share of profits earned by their entertainers, more legal disputes like TVXQ are bound to happen,” said Lim Jin-mo, a music critic.

Experts say the only way to limit onerous contracts is to adopt new rules and regulations. Along with these steps, some suggest that the patriarchal system that lets agencies treat their entertainers as chattel needs to be modernized.

As conflicts related to unfair contracts have flared in recent years, the Fair Trade Commission began a contract-by-contract probe into the issue and has requested revisions. Some improvements have been enacted. And the commission introduced a system of using “standard contracts” for entertainers last month and strongly recommended that the entertainment industry to use it.

However, there are exceptions in the revised contracts letting an agency sign long-term contracts for special reasons, such as a long period of overseas activity. Korea Entertainment Producers’ Association has come out against the new system, saying that it does not reflect the reality of Korean pop music.

Perhaps the Achilles’ heel of the proposed contract is that it is merely a recommendation that has no enforcement teeth. Japanese fans of TVXQ and many experts there deride Korean entertainment management. They said it is impossible to sign a contract that lasts for more than 10 years in Japan.

But there are differences in the entertainment culture of the two countries. In Japan, where the scale the entertainment industry is much larger than in Korea, a few big agencies are firmly in control of the industry. New entertainers renew their contracts every two or three years and get paid monthly. In the United States, one entertainer is sometimes managed by two separate companies, a management agency which supports overall activities, and an agent overseeing an entertainer’s products and contracts.

“The entertainment industries in the United States and Japan have developed after going through a lot of trial and error. It is impossible and not right for Korea to immediately follow their example,” said Hong Sung-kee, president of Korea Entertainment Law Society.

Some say culture is more important than changes in written rules and laws. In a culture that refers to an agency as an entertainer’s benefactor while treating a singer as a betrayer when he or she complains, it is difficult to develop a reasonable contract. “Even though more Korean entertainers are becoming popular on the global stage, the system of managing them has not changed,” said Lee Dong-yeon, professor of Korean Traditional Arts at Korea National University of Arts.

“A new management system and culture have to be developed so that new entertainers can also get legal advice when signing contracts,” he said.

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[INFO] Comparison of Idol Groups' Contracts

Company
SM Entertainment
Singer/group name|Year of debut|# years contract lasts
TVXQ|2004|13
Super Junior|2005|5~13
SNSD|2007|5~13
SHINee|2008|6~13


Company
JYP Entertainment
Singer/group name|Year of debut|# years contract lasts
Wonder Girls|2007|7
2PM|2008|7
2AM|2008|7


Company
YG Entertainment
Singer/group name|Year of debut|# years contract lasts
1TYM|1998|no contract
Big Bang|2006|5
2NE1|2009|5


Company
DSP Entertainment
Singer/group name|Year of debut|# years contract lasts
SS501|2005|5
KARA|2007|7


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