EXO shakes, Fifty Fifty creaks… K-pop stained with agency disputes and crimes

In the first half of this year, a series of disputes broke out between singers and agencies in the K-pop industry. As K-pop gained global popularity and the industry grew, the problem of 'settlement' between singers and their agencies kept coming to the surface. It is true that singers should receive a fair price for their activities, but seeing the group reeling due to a dispute with their agency, the hearts of many fans were nervous.

◆ Money is a problem... EXO's Chenbaeksi and 5ftfifty are in dispute with their agency

Last month, Chen, Baekhyun, and Xiumin notified their agency SM Entertainment ('SM') of the termination of their exclusive contracts. Subsequently, SM filed a complaint with the Fair Trade Commission (hereinafter referred to as the Fair Trade Commission). They claimed that the relationship of trust was broken because SM forced them to enter into unfair slavery contracts for decades and even the payment process was not transparent. It must have been negative news for EXO, who was preparing for a comeback.

In particular, the focus was on 'request for copies of settlement data and settlement grounds'. The law firm, Lin, requested a copy from SM, but informed that it was not disclosed. What should be noted is that they requested the disclosure of settlement details for all EXO activities, not details of the period after the renewal of the contract.

Here, SM claimed that a third force was working together with Chen Baek-shi and was muddying the water. The places designated as the third force were rapper MC Mong and Big Planet Maid Entertainment. Of course, they all took the position of 'unfounded'.

Currently, this conflict has been superficially resolved. This is because EXO's comeback is less than a month away. However, it is divided into fans who support Chenbaeksi's position and fans who are concerned about EXO's overall activities. It is an active volcano that can explode at any time. SM and Chenbaeksi's risky companionship continues.

Fifty Fifty also filed an application for a temporary injunction to terminate the exclusive contract against the agency Attract. Fifty Fifty is a group that entered the US Billboard chart with the song 'Cupid'. For that reason, it is also called the miracle of small and medium-sized idols.

The cause of the problems between them and the agency was ultimately money. The members are claiming that the agency broke trust in the settlement process. In addition, there are suspicions that the member's health problems made it difficult to promote, and that he coercively demanded that the activity be enforced.

Attract attributed the cause of this situation to the outside. Attract said in a statement, "We are confirming that there are external forces approaching Fifty Fifty and enticing them to violate the exclusive contract with us."

The external forces mentioned are 'The Givers', headed by producer Ahn Seong-il. Seongil Ahn, CEO of The Givers, signed a service contract with Attract and produced Fifty Fifty's debut project. CEO Ahn Seong-il is the creator of 'Cupid'.

The Givers said, "Attract mentioned 'external forces' intervention, but we have not intervened in any way." "We will take strong legal action in the future."

The situation is still unresolved. If the contract is not properly executed according to Fifty Fifty's position, it is a problem with the agency, Attract. Conversely, if tempering is true, The Givers and Fifty Fifty cannot avoid criticism.

◆ 8 trillion won in stock prices only... Lim Chang-jung at the center of the worst 'SG stock price manipulation' scandal in history

Meanwhile, in the first half of the year, a singer representing the music industry collapsed. Suspicion of stock price manipulation triggered by the collapse of SG Securities' orders. Singer Lim Chang-jung is involved in a case involving political and business figures and celebrities, centering around Deok-yeon Ra, the CEO of an investment consulting company.

Lim Chang-jung is in the position of 'not knowing' all the suspicions. Even if it was not his intention, Lim Chang-jung was used as a 'face madam' by the stock price manipulation gang. Lim Chang-jung accompanied the parties to parties and business sites, and even referred to CEO Ra as a 'religion' in front of investors. Lim Chang-jeong's position is that it was a misunderstanding that occurred in the process of believing in the word that he was investing in the agency and trying to look good.

This week's stock price crash is only for 8 stocks that crashed: Daou Data, Harim Holdings, Daol Investment & Securities, Daesung Holdings, Sunkwang, Samchully, Seoul Gas, and Sebang. At that time, the market capitalization evaporated by 8.2 trillion won. Regarding this, Lim Chang-jung explained, "In all of this process, I invested my money in them and suffered great losses, but I did not attract other investors or engage in any business activities related to stocks."

The Seoul Southern District Prosecutor's Office currently prosecuted Ra Deok-yeon on charges of manipulating market prices under the Capital Markets Act, and also seized and searched his office. However, investigative agencies, including the prosecution, did not book Lim Chang-jung as a suspect. It seems that the investigative agency also acknowledges Lim Chang-jung's claim that he is a victim.

◆ Acquisition of SM, Hive pushed by Kakao… The battle of the giant dinosaurs that made an 'empty cart'

The takeover battle between entertainment companies attracted great attention from the entertainment industry as well as the investment industry. It is evaluated that it was the biggest event in the first half at the industrial level. It was a fight between Lee Seong-soo and Tak Young-jun, co-CEOs with Kakao on their backs, and Lee Soo-man, the first chairman with Hive.

Kakao and Hive's battle to acquire SM, which drew industry attention, ended with Kakao's victory. First, Hive called for 120,000 won as a Kakao public offer. In particular, Chairman Bang Shi-hyeok toured Yeouido, Seoul, and met institutional investors and voting advisors who owned shares in SM and appealed for them to take Hive's side.

The bullet had more cocoa. Kakao was promised an investment of 1.2 trillion won from Saudi Arabia's sovereign wealth fund and received the first payment of 897.5 billion won. As a result, the tender offer was raised to 150,000 won.

There was also an internal opposition from SM before the overheated takeover. In the end, it is because of the perception that it is a rebellion to reap the influence of the chairman. In this situation, the news came that Hive and Kakao had reached a grand agreement. With Kakao taking the management rights and Hive cooperating with the platform, the SM management dispute ended.

◆ Ravi Nafla, I hoped, but I was right... Re-igniting the entertainment world'history of avoiding military service'

In the first half of this year, the crime problem of K-pop stars also surfaced. Drunk driving was still the same, but the issue of avoiding military service resurfaced. Rapper Ravina Nafla committed the crime for personal comfort.

Ravi is suspected of being exempted from military service by submitting false epilepsy to the Military Manpower Administration through brokers Moo Gu and Mo Kim.

In 2012, Ravi was judged to have a body grade 3 due to bronchial asthma. Later, in 2019, he received a grade 4 through a re-physical examination. In March 2021, immediately after meeting Mr. Koo, he attempted a class 5 exemption for false epilepsy. During this process, Ravi acted by delaying fainting and falsely reporting to 911.

Nafla is also suspected of conspiring with the broker Gu to be judged 'unfit for service'. It was revealed that Nafla never went to work for 141 days out of 1 year and 9 months of his mandatory military service. However, attendance records such as attendance records and work status were manipulated. Later, in the first trial in April, the prosecution requested two years and two years and six months in prison for Ravi and Nafla, respectively.

In particular, in the case of Ravi, the possibility of re-service came to the fore. This is because even if you complete your supplementary service, you will have to serve again unless you are sentenced to more than 1 year and 6 months in prison. An official from the Military Manpower Administration said, "If the preferential military service or corruption is found to be true, punishment will be carried out according to the examination of each military unit."

Reporter Yoon Jun-ho, Ten Asia delo410@tenasia.co.kr