46

6

News
Posted by EunhaYi Wednesday, June 12, 2024

EXO-CBX comment on the Fair Trade Commission opening an official investigation into Kakao Entertainment

AKP STAFF

In relation to the official investigation by the Fair Trade Commission of Kakao Entertainment, an affiliate of SM Entertainment, EXO-CBX made a statement saying, "SM has been abusing and charging discriminatory music distribution fees, which was an issue in the previous press conference. It has been proven that SM Entertainment’s behavior is the essence of this situation.”

On June 10, the Fair Trade Commission began an on-site investigation into Kakao Entertainment, which is suspected of discriminatorily charging music distribution fees. This is a measure taken in response to Big Planet Made's report to the Fair Trade Commission early this year, requesting an investigation into the circumstances in which Kakao Entertainment discriminately charges distribution fees between agencies belonging to its affiliates and subsidiaries and other agencies.

This coincides with the transcript of SM Entertainment's CAO Lee Seong Soo released by EXO-CBX, who held a press conference on the same day. In this transcript, this CAO proposes, “We will allow a 5.5% music commission rate to be applied through Kakao Entertainment.” Big Planet Made is said to have already submitted the relevant information to the Fair Trade Commission.

EXO-CBX's side stated, "This is something that casts doubt on Kakao Entertainment's claim that 'Whether or not it is a Kakao affiliate is not a consideration at all for calculating distribution commission rates. At the same time, it appears that SM is providing evidence proving Kakao Entertainment's inappropriate practices." 

EXO-CBX's side emphasized that the 'essence' of the press conference held on June 10 was to correct the problem of unfair music distribution fees and to raise awareness of SM Entertainment's abuse of this behavior to pressure Chen, Baekhyun, and Xiumin to renew their contracts.

EXO-CBX's side stated, "After reviewing our report and evidence, the Fair Trade Commission initiated a formal investigation and began an on-site investigation on June 10, showing that the act in question is a problem that cannot be ignored," and added, "SM Entertainment is engaging in such discriminatory distribution. The act of using fees as a tool to renew artists’ contracts was clearly revealed through the evidence released at the press conference, but SM Entertainment is trying to divert the public’s attention by misleading the true nature of the problem.”

In addition, EXO-CBX said, "We plan to actively cooperate by submitting the relevant evidence we have so that the faults in this situation can be clearly identified through the Fair Trade Commission," adding, "The Fair Trade Commission's judgment will objectively reveal the nature of this situation.


SEE ALSO: T-ara's Jiyeon and Hwang Jae Gyun reach a settlement for divorce

  1. Baekhyun
  2. Chen
  3. Xiumin
  4. EXO-CBX
10 12,695 Share 88% Upvoted
 
brckhmptn
brckhmptn495 pts Wednesday, June 12, 2024 1
Wednesday, June 12, 2024

"[...]but SM Entertainment is trying to divert the public’s attention by misleading the true nature of the problem.”

and I hope people can pick this up and remember so that they're not easily fooled by that evil ass company.

20 (+25 / -5)
Share

1 more reply

 
TKTrue
TKTrue1,281 pts Wednesday, June 12, 2024 5
Wednesday, June 12, 2024

This has always existed 🙄 Its not a new problem SM is nasty and HYBE has become its twin sibling. For a company to take 10% of your profit for 10 years bc you left after 2 like the former EXO members is good example of slavery bc EXO paid off their debut costs just with Growl. I wonder if Jessica Jung who also left SM after renewing with SM and SNSD was forced into this slave contract for 10 years

4 (+11 / -7)
Share

5 more replies

SHOW ALL COMMENTS

allkpop in your Inbox

THE TOP 10 STORIES DELIVERED DAILY
Lee Da Hae
BTS, V, Min Hee Jin
Han Seo Hee
Jiyeon
Lee Si Young
aespa, Lee Soo Man
Buzz
Suzy
aespa, ATEEZ, G-Dragon, Jennie, Rosé, Jin, DAY6, NCT Dream, QWER, Seventeen, TXT
KATSEYE, RIIZE, Seunghan
BTS, V, Park Hyo Shin
BTS, V, Min Hee Jin
Red Velvet, Irene
KATSEYE, RIIZE, Seunghan
Suzy
New Message

SEND