The Korea Music Content Association (KMCA) has expressed concerns regarding the first trial verdict involving HYBE and former ADOR CEO Min Hee-jin.
On the 20th, the KMCA stated, "The association is deeply concerned about the first trial verdict between HYBE and former CEO Min Hee-jin, as we are an organization dedicated to the development and promotion of the K-pop industry." They further elaborated, "The K-entertainment industry has grown based on mutual trust between capital investors and contributors. Talent cannot flourish without investment, and investment is meaningless without contribution."
The association pointed out that the judgment basis for 'breakdown of trust' mentioned in the verdict significantly deviates from industry standards. KMCA emphasized, "The overly narrow view of the essential and fundamental element of trust breakdown, and the excessively high standard set for judgment, raises concerns that actions perceived as tampering (inducing a third party to leave during an exclusive contract period) in the industry might be interpreted as legitimate business activities or actions without substantial responsibility."
The association explained that in the K-pop ecosystem, which operates on trust, if a subsidiary's CEO or key executives use unfair means to leak successful artists' intellectual property (IP) externally or attempt independence, it could undermine the stability of the industry's governance structure. KMCA added, "In the K-pop industry, if a subsidiary's CEO or key executives use unfair methods to extract successful artist IPs and seek independence with a new company, it could severely impact the overall industry's governance stability and investment predictability."
Finally, the association stressed that this issue is not limited to the music industry alone. KMCA concluded, "This issue is not just a problem for the K-pop industry. In all content and intellectual property (IP)-based industries that operate on contracts, determining the extent to which conflicts of interest and trust destruction by key personnel are tolerated is a matter that dictates the norms of the entire market. We strongly urge consideration of the impact this case will have not only on the K-pop industry but on all IP industries in future legal proceedings, including appeals."
Reported by Min-kyung Lee, Ten Asia 2min_ror@tenasia.co.kr