The Korean League of Singers revealed, on the 5th, that this instance showed structural problems with both SM Entertainment and DBSK members.
The secretary-general of the league went on air on radio program, "Open World Today, Lee Suk Woo" and stated that "if this situation is not solved properly, similar situations will happen repeatedly. Contract periods, earning divisions, and other unfair contract conditions must be corrected."
Lim Sang Hyun lawyer, the official lawyer for the 3 members, revealed that each member received 200,000,000 Won for their work. On the contrary, SM responded that they paid the members 11 billion won.
On this, secretary general Kim stated, "if SM did,in fact, pay 11 billion won to the members, it is still necessary to consider if it was a rational payment, if the distribution was right, and if it is an acceptable amount of payment compared to the profits made by the company. SM and DBSK is just one case; the current earning distribution structure makes it possible for the ratio of earnings to be 100 to 0 for the artist. (100 company: 0 artist). Whether it is setting minimum or maximum earning distributions, there needs to be a separate regulation for the future." The three members asserted that their contract with SM is 13 years but in reality, is a contract for life, but SM refuted that the contract complies with the recommendations for a standard contract, which was presented by the Fair Trade Commission in July.
Secretary General Kim added, "if contract periods exceed 10 years, this period is applicable to their entire musical career. In April, it was judged that the contract period can be a clause to void contract because it severely restricts an artist's moral influence as well as economic freedom. Secretary General Kim added that if a group as popular as DBSK are in such situations, the reality for nameless celebrities and trainees must be investigated. Further, he stated that this situation will have influence on mainstream music industry for the first half of the year and this opportunity should be used to examine the way the music industry functions.
In order to avoid relapse of the situation, he stated as a solution, "first of all, the ideal contract released by Fair Trade Commissions must be upheld by the music industry. The league of singers is considering plans which includes a center to aid for accusing companies for harm done or even developing a specific subordinate contract which will be attached to the official contract.
Article credits:asianfanatics
