'Fifty Fifty Controversy' Dugiverse "Label deal in progress? False facts"

Dugiverse revealed the contents of a conversation with 55 Fifty's agency, Attract CEO Jeon Hong-joon, about the label deal.

On the 12th, Dugiverse said, "CEO Jeon Hong-joon of Attract has approved the label deal proposed by Warner Music Korea in advance and received frequent reports on the progress."

Previously, CEO Jeon Hong-joon disclosed to the media a transcript that would serve as evidence for the suspicion that it contained circumstances that Dougibus tried to transfer 50 Fifty to Warner Music Korea. Regarding this, Dugiverse said, "Looking at the previous situation of the transcript released by CEO Jeon Hong-joon, CEO Jeon Hong-joon asked Dugibus CEO Ahn Seong-il about attracting investment from overseas, and while CEO Ahn Seong-il was looking for a way, Warner Music Korea and the label The proposal for the deal was conveyed to CEO Jeon Hong-joon, followed by a conversation between Warner Music Korea and CEO Jeon Hong-joon.”

Dugibus revealed the contents of the conversation between CEO Ahn Seong-il and CEO Jeon Hong-joon. Regarding this, "On December 19, 2022, CEO Jeon Hong-joon inquired about attracting investments such as advance payments from the United States to solve the lack of funds, and Dougiverse asked for an investment from the US side from February 22, 2023 to 2023 We talked about the label deal steadily until March 2023, and discussed the label system with Warner Music Global and Warner Music Korea on April 10, 2023." "However, on April 22, 2023, CEO Jeon Hong-joon hoped for an advance distribution investment and direct listing method rather than a label deal, so Dugiverse eventually said that it was the CEO's choice and did not discuss it further." In addition, "CEO Hong-Jun Jeon received a 'label deal through a direct distributor' from Dugiverse CEO Ahn Seong-il. The label deal is a structure in which artists belong to a global direct distributor as a label and use the direct distributor's financial power and infrastructure to achieve coexistence. As a global direct distributor There are Warner Music Korea, Universal Music Korea, Sony Music Korea, etc." and "There is 'Advanced Distribution Investment' as a way for an artist's agency to utilize the funds of a distributor. The agency can use this fund relatively freely, but it is clearly We have a duty to pay,” he explained.

Dugiverse said, "CEO Ahn Seong-il suffered from extreme stress and pain during the production of the Fifty Fifty album. CEO Jeon Hong-joon did not put the advance payment received from the distributor Interpark into the production cost on time, and the funds were not executed on time, so the production cost was not paid to the partner. It is because of the overdue and late payment, and in the end, the debut was delayed." "Considering the reality of girl group album production, where numerous partners (broadcasting, marketing team, overseas PR, platform company, stylist, hair makeup, choreography team, etc.) must collaborate organically, the uncertainty of the production cost is inevitably a great risk. In addition, in a situation where it is not easy to secure excellent personnel due to the attract structure, I thought that collaboration with a direct distribution company label was a way to facilitate overseas work.”

Dugiverse said, "For efficient album production, artist activities, and stable growth of Attract, Dugiverse proposed to CEO Jeon Hong-joon and delivered the approved label deal to Warner Music Korea." The expression 'out' refers to equity acquisition investment, and it is a kind of label deal. CEO Ahn Seong-il emphasized that those who used the expression label deal never used the word buyout." He also appealed, "CEO Hong-joon Jeon has continuously asked Ahn Seong-il to mediate the investment attraction, so the label deal was not sudden."

The Dugibus side said, "Dugibus was faithful to the role of a bridge that connects and helps in the middle." "Unlike the early days when we discussed overseas investment or label deals for stable operation, after the success of the Fifty Fifty Cupid album in April 2023, CEO Jeon Hong-joon changed his stance and rejected the label deal, only focusing on the advanced distribution investment method." After that, Warner Music Korea also turned to pre-paid distribution investment and discussed with CEO Jeon Hong-joon."

The Dugiverse side said, "It is false to disclose the transcript with Warner Music Korea on July 3 and say that we have not heard anything about the label deal. claimed. He continued, "Advanced distribution investment and label deals are not something CEO Seong-il Ahn can decide, but only the agency Attract, which is the party to the contract, can decide." "I can't understand the part where '' is being driven into the impure power behind it," he said.

◆ Full text of Dugibus official statement

The truth behind the Fifty Fifty Controversy (1)

Attempt to steal a member? nonsense
Disclosure of the before and after situation of CEO Jeon Hong-joon's transcript
Efforts to attract investment turned into an impure background force...

Attract CEO Jeon Hong-joon approved the label deal that Dugiverse was offered by Warner Music Korea in advance and was frequently briefed on the progress.

Looking at the previous situation of the transcript released by CEO Jeon Hong-joon, CEO Jeon Hong-joon inquired about Dougibus CEO Ahn Seong-il about attracting investment from overseas, and while CEO Ahn Seong-il was looking for a way, he was offered a label deal with Warner Music Korea. was delivered to CEO Jeon Hong-joon, followed by a conversation between Warner Music Korea and CEO Jeon Hong-joon.

This is the KakaoTalk contents of the actual conversation.

On December 19, 2022, CEO Jeon Hong-joon inquired about attracting investments such as advance payments from the United States to solve the insufficient funding problem, and Dugiverse proposed a plan from February 22, 2023 to March 2023 as a way to solve attract's financial problem. Until April 10, 2023, we discussed the label system with Warner Music Global and Warner Music Korea.

However, on April 22, 2023, CEO Jeon Hong-joon hoped for an advance distribution investment and direct listing method rather than a label deal, so Dugiverse said that it was the CEO's choice in the end and did not discuss it any further.

CEO Jeon Hong-joon received a 'label deal through a direct distribution company' from Dugiverse's CEO Ahn Seong-il. The label deal is a structure in which an artist belongs to a label of a global direct distribution company and uses the direct distribution company's financial power and infrastructure to achieve coexistence. Global direct distributors include Warner Music Korea, Universal Music Korea, and Sony Music Korea.

On the other hand, there is 'advanced distribution investment' as a way for the artist's agency to utilize the distribution company's funds. The agency can use this fund relatively freely, but it has a clear obligation to repay.

CEO Ahn Seong-il suffered from extreme stress and pain during the production of the Fifty Fifty album. This is because CEO Jeon Hong-joon did not put the advance payment received from the distributor Interpark into the production cost on time, and the funds were not executed at the promised time, so the production cost payment to the partner company was overdue/in arrears, and eventually the debut was delayed. In light of the girl group's album production reality, where numerous partners (broadcasting, marketing team, overseas PR, platform company, stylist, hair makeup, choreography team, etc.) must collaborate organically, the uncertainty of the production cost is inevitably a big risk. In addition, in a situation where it is not easy to secure excellent personnel due to the attract structure, collaboration with direct distribution labels was thought to be a way to facilitate overseas work.

For efficient album production, artist activities, and stable growth of Attract, Dugiverse proposed to CEO Jeon Hong-joon and delivered the approved label deal to Warner Music Korea (the expression 'buyout' in CEO Jeon Hong-joon's transcript is a share). It refers to acquisition investment, and it is a kind of label deal. CEO Ahn Seong-il used the expression label deal, but he never used the word buyout). The deal with the label was not sudden as CEO Jeon Hong-joon had continuously asked CEO Seong-il Ahn to mediate the investment attraction.

Dugibus was faithful to the role of a bridge that connects and helps in the middle. Unlike the early days when we discussed overseas investment or label deals for stable operation, after the success of the Fifty Fifty Cupid album in April 2023, CEO Jeon Hong-joon changed his stance and refused label deals, sticking to the advanced distribution investment method. . After that, Warner Music Korea also turned to investment in prepaid distribution and discussed with CEO Jeon Hong-joon.

On July 3, when the recording was released with Warner Music Korea, the statement that he had not heard anything about the label deal is false, and the claim that CEO Ahn Seong-il proceeded alone without the approval of CEO Jeon Hong-joon is also false.

Pre-order distribution investment or label deal is not something CEO Seong-il Ahn can decide, but only the agency Attract, which is the party to the contract, can decide.

It is incomprehensible that CEO Ahn Seong-il and Dugiverse, who proposed a good environment for CEO Jeon Hong-joon, the agency, and the artists, are being accused of being behind the scenes.

Reporter Kim Ji-won, Ten Asia bella@tenasia.co.kr