According to reports by the Union News, KARA's Nicole, Seungyeon, and Jiyoung are currently discussing soliciting arbitration from the Korea Entertainment Producers' Association (KEPA). An industry representative, and also an associate of the three girls, 'J', stated, "The parents of the three have expressed a desire to discuss matters with DSP Media. They're also considering to request mediation from the KEPA." 'J' has been making headlines as the close friend of Nicole's mother, and for also allegedly being the figure behind the entertainment company that offered KARA new contracts under his own agency and to pay for their contract termination penalties. 'J', who expressed that he knew about the rumors, answered, "I was targeted to be the one offering contracts from behind, but that's ridiculous. It's true that I'm helping them, but it's under a completely different understanding. I lived in the same apartment as Nicole in the U.S. and have been close with the members' parents for a while. I listened to their concerns and gave advice from a third party perspective. I don't even want to get into the rumor about me supposedly investing $4 million USD into an agency to take in KARA." He also revealed that he met with the parents yesterday and that he has been watching over the entire ordeal right alongside them. The problem is not money, he claimed, but a matter of broken trust and the problems that arose after the CEO's wife took his place after his hospitalization. 'J' continued, "The remaining years left in each of the members' contracts are different. If the original CEO was present, then we wouldn't think twice about re-contracting under DSP, but DSP has blocked the girls from visiting the CEO in the hospital and withdrew information regarding his health. If they hadn't done that, the girls would have at least stuck by their contract out of loyalty to the CEO. The company instead tried to hide things and never once showed proper balance statements and contract documents. DSP wanted to 'make at least one more member return so that they can continue promotions with a new member addition' and have been continuously attempting to meet with Seungyeon and Jiyoung's parents in an attempt to persuade them with higher income distributions. They do not realize that this is an issue of broken trust." He added, "The three parents are not thinking at all about whether they'll be returning to the company, or whether they'll be looking for another company. They just believe that they want KARA as five. The parents will be negotiating with the company. Because of foolish speculations like 'the parents are doing it for the money', and further misunderstandings with the company, I, too, told them to negotiate." On the other hand, representatives of DSP Media revealed to TV Report on January 22nd, "We have evidence proving that 'J' tried to win over the parents of KARA and that he is one of the figures behind this controversy. It isn't physical evidence, but we definitely have it." Source: TV Report, Khan News