Political spotlight on unfair practices in K-pop industry: ‘album bulk-buying’ and merchandise issues.

Concerns about unfair practices in the K-pop industry, such as ‘album bulk-buying’ and questionable merchandise transactions, were raised during a National Assembly audit on October 7th KST. Representatives from major K-pop agencies SM, YG, and JYP Entertainment were present, as issues related to album bulk-buying and the need for fans to purchase multiple copies of CDs to attend fan sign events or obtain desired photocards were discussed.

Im Oh Kyung, a lawmaker from the Democratic Party, questioned the industry on these practices. SM Entertainment’s CEO, Jang Cheol Hyun, responded, “We sell albums through agreements with distribution companies, and I will return to the company to verify if there are any concerns as mentioned by the lawmaker.” He added, “As K-pop has grown significantly, we feel a great sense of responsibility and will work to find ways to have a positive influence on K-pop fans, including the younger generation.” JYP CEO Jung Wook also commented, “Fan sign events are typically overseen by retailers, and if there are any issues, we will look into them closely.”

Choi Jun Won, the CEO of Weverse Company, acknowledged concerns about the environmental impact of producing large amounts of plastic CDs. He stated, “Our platform is making efforts to address this by offering ‘Weverse Albums,’ where music can be downloaded via QR codes without the need for physical CDs. Other agencies are also working in this direction to have a positive environmental impact.”

Minister of Culture, Sports, and Tourism Yoo In Chon commented on ‘album bulk-buying,’ saying, “We are operating a reporting center through the Korea Creative Content Agency. If issues arise with record companies, we can request data submissions and even refer cases for investigation.”

Additionally, Democratic Party lawmaker Kang Yoo Jung pointed out unfair practices regarding refund policies for idol merchandise, showing a purchased clothing item. Choi Jun Won responded by saying, “During the Fair Trade Commission’s investigation, we actively accepted recommendations for improvement.”

‘Album bulk-buying’ refers to the practice where intermediate sellers are required to purchase a certain amount of albums to boost sales figures. To clear this stock, fan sign events are held, requiring artists to attend and causing physical strain, while fans are often compelled to repeatedly buy albums to participate.

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