Further details regarding KARA’s decision to terminate their exclusive contracts with DSP Media have been revealed through TV Report, Park Gyuri’s mother, and representatives of DSP Media.
TV Report claimed that industry representatives were aware of the issues surrounding KARA and their agency since December 2010. Representatives of DSP Media and Park Gyuri allege that the reason for the four members’ terminations was “eventually because of money.”
According to another industry representative, KARA brought in a total of $18 million USD in income from their Japanese promotions, but as of December 2010, the group was only paid $3,000 USD per person.
The members were also only paid for album sales for August and September of 2010, excluding CF and event appearances. The girls are said to have been paid in a greater amount for their activities aside from album and digital sales, which are all going to be paid without problems. The reason the girls are paid less for their album sales is said to be because of specific clauses in DSP’s contract with their Japanese distribution company.
Income made from the girls’ Japanese albums are calculated three months after its initial release, and 85% of the profits go to the distribution company, leaving DSP with the remaining 15%. The representative mentioned that the numbers are similar for any Korean artist advancing into the Japanese market.
Especially with DSP Media’s CEO, Lee Hoyeon, currently hospitalized, all artists under the agency were ordered to be kept under tight control. Around this time, another entertainment agency approached KARA and offered them to join their agency. The agency went as far as to offer to pay the penalties the girls would have to deal with for breaching their contracts should they take the offer.
The representative was said to have met with one of the members’ mothers and present a contract with fairer terms and a promotion plan that would instantly earn KARA enough fame to rival that of SNSD’s popularity.
The representative first met with Gyuri’s mother, but discussions did not run smoothly. In an interview with TV Report, her mother stated, “I could not betray DSP, who worked their hardest in creating who KARA is now. I have no problems with the contracts, and I trust DSP.”
Representatives of DSP further added, “There were mothers that brought up problems, so we made sure to make all related documents as transparent as possible to them. We used accountants that they chose, but in the end, they could not trust even that.”
Another representative also revealed that DSP Media met with KARA’s mothers on January 18th and almost reached a compromise to reform the income distribution regarding their Japanese albums. The next day, KARA’s lawyers from Trademark announced their contract terminations.
Is there a possibility for them to reach a compromise? The industry is already speculating them to be the ’second TVXQ‘ due to the complex underlying issues.
“There are definitely various problems with both parties, but the ultimate issue is the competition in trying to scout KARA, and money. The reality of these disputes with TVXQ and KARA is quite disappointing,” said one representative.
DSP Media has reasoned that they have no option left but to take legal action, predicting yet another legal battle in the industry.
Source: SPN, TV Report via Nate
Credit: Allkpop
Shared by: JYJ3
Little bit more info about Kara drama
DSP Media releases official statement, Goo Hara cancels contract termination
JYJ3 
“the second tvxq“ .. girls edition..
for same reasons..
“The reality of these disputes with TVXQ and KARA is quite disappointing” Is this like a bad comment or am i reading it wrong.
yeah, it sounds bad, but nvm, whatever they said, we’ll stand by the three forever.
You’re reading it right. But it is a comment of an industry representative so it would be trying to cast them in a bad light.
We don’t know yet if the charge of another company being involved is true. If it is, it will be unfortunate, unless they go in with an agency contract (like JYJ have with C-JeS) and not the standard management contract.
thnxx for explaining Eliza~ =))
They can’t really sign with another management company since their contracts with DSP are still running. It’s not terminated yet so I guess the best way would be for them to enter in an agency contract.
The fact that majority of the members of two different idol groups have filed for contract termination is a sign that there is something wrong with the contracts. And you can’t always use the defense that it was all about money.
@anon They can’t sign with another management company until this is over, but the article said (taking into account who is saying it) that the other company offered to buy they out. Why would they do that unless they wanted KARA to sign a similar contract?
This is my worry. That it won’t end up being about the contract, but about the money. Which I see as a perfectly valid reason because DSP didn’t do their job in Japan (Bullshit 85% is standard!). BUT JYJ’s PR is that the management contracts are fundamentally flawed. KARA might not end up helping them as much as we hope.
But it’s early…hours. Let’s see what shakes out in the next few days.
I was starting to think the exact same thing. As nice as it sounds (the other company’s willingness to buy them out) it sounds too easy. Like you were saying to me it may seem like they are walking out of one mess into another. I think they need to put more thought into this. Give it more thought or something~ It costs alot of monet to terminate those contracts. If a company is willing to pay it off just to have you, they need to think about what that company is willing to do to regain that money they lost. Idk y but I’m hoping these girls have enough since not to go to SM, but…who knows. That whole thing about making them bigger than SNSD isn’t something that can be guaranteed and it all seemed like a bunch of sweet talk to me…just made me think of SM.
if you are, then count me in..the reality that it’s all about money? we don’t know the details of KARA’s case but we certainly know that for JYJ, it’s not about money
girls be strong and keep fighting!
Shame what’s happening in the Korean Pop Industry. For some reason I have this feeling this issue with Kara and their company will be solved before JYJ. I hope that doesn’t happen.
that would be sad, but i’m not sure about Korea system, because in the US, you can use similar previous case to help determine the judgement, so if KARA wins their case first, then there is a higher chance for JYJ as well…
man i guess, Sm is not the only one that are sucks at management. No wonder, in Korea, there are either ppl who are extremely rich or ppl who are extremely poor…..wait, I thought KARA is more famous than SNSD? anyway, in term of appearances, I think KARA looks better. Good luck KARA, you have made the right decision
KARA is more famous than SNSD in Japan but in Korea their not tht popular.
Oh i see, well Japan has a bigger market but in term of loyalty, i think korean fans is better, look at how tough the Kcassies r fighting fo JYJ, and i am strongly admire them for that.
I think JYJ fans are the exception to most rules. ^^
Korean media and anties try to frame this issue like “four members isolated the leader and betrayed the company.” Some even say “Jaejoong is tied to this issue because he is close to one of the member.” People do not see the core of the problem.
역시~~~In the area of historical and philosophical myopia, Koreans NEVER disappoint =_=;;
Makes me wonder why I’m still stubbornly proud to be Korean =_=
like i said they just skip the serious matter at hand sigh~~~this kind of thing not happen in Koreans but the rest of the world. People like spicy stuff rather the more important boring issue at hand. in this case, speculation over the core of lawsuit itself.
“eventually because of money.”
Is this the default reason of all companies being sued?
Try harder, DSP and SM.
KARA and JYJ fighting!
i dx understand people are taken aback with the money issue with being the reason of the lawsuit. i wont blame the artist if they file the lawsuit because of money. Oh come on, we work to earn the money. they singers and entertainers. that’s their work, they should get pain for what they’re worth. its not a freaking charity to the company. i dx get some people’s logic.
*paid* not pain +.+ sorry typing while mad will abuse train of thoughts
Agree. If they are working their butts (LOL no pun intended) off, they would at least want to be paid for what it’s worth!
why this article sounds that KARA and JYJ did is dissapointing?
More like they blame their decision,
and why gyu ri’s mother statement so familiar,
and I hate when some antis start bash jaejoong just because they are close,
unless they have strong proof, other wise jaejoong should sue them for defamatory
Our baby will not sue them because he’s too nice.
Can fans sue on his behalf? ;p
yeah i agre with Shadow. Our JJ is kind hearted in nature & wud not do things like this.
coz they dont really like people that speak up…
Kamilias Fighting!!!!!!!!!!!!!
I heard K-Kamilias are starting to go to DC and chat and connect with JYJ fans there since this came out…anyone else seeing the two fandoms standing together in the future?
woahh WHAT a sight tht wud be. Just thinking about it gives me goosebumps!
and there’s some nutcases actually start calling them greedy and the moms a drama queens….i mean sigh im exhausted how they just skip through the whole low income distribution? Like seriously they got just like +/-USD3000 for Japan activities…I earn more than that….
and i actually kind of having a flashback…when and where is that??
lol i know that is like .0008333% of how much they make…these company are way too greedy
yup someone calculate, it was less than 0.001%
Makes me wonder if the parents of those who stay get any benefit out of being cowardly staying put?
They are brainwashed already!!!
Gosh~ aliens are running Korean entertainment scene!!!!
I still do not understand the logic behind being greedy when you where never paid the amount you deserved in the first place.
Do these ppl understand what GREED means?
These girls got 3k…3 FREAKING k out of 18 mil THE FUCK?
HOW IS THAT GREEDY TO LEAVE BECAUSE THEY’RE NOT GETTING WHAT THEY DESERVE!
TELL ME NEWS REPORTERS, TELL ME INDUSTRY INSIDERS HOW THE HELL IS IT BEING GREEDY.
They always want to throw the ‘they left for money’ like it’s a ‘bad’ thing when it’s not. It’s not greedy to demand what you deserved in the first place.
to be greedy it to get all that is deserving of you and then to ask for MORE. To HOG, that’s what SM and big business do, they HOG, they’re the greedy ones.
And then they have the nerve to say it’s disappointing. HOW BACKWARDS.
I’m pissed excuse the caps guys.
The fan bases need to join together. They’re trying to destroy anyone who attempts to make TRUTH the authority.
MTE! you work you get paid. Not perform you get fired. Thatz my motto thought.
Excellent point. Thank you! I think I was starting to get a little brainwashed by the opposing rhetoric.
***CLAPS***** you deserve a round of applause for this. This is what fucking needs to get said. I’d be pissed as hell if I made $18 Million USD and only had $3000 to show for it. And I don’t know any person that woundn’t~
Totally agree.
Korea Music Industry or I should say K-Entertainment Industry MUST CHANGE their LOGIC and CORE SYSTEM.
I really don’t understand why Korea Government gives their fully support in this industry and makes well-know worldwide but not consider this as a problem?
I wonder what K-Ent industry would be like 10 years from now. Moving Forward or Backward????????
JYJ filed the lawsuit because of those freaking Slave Contract and yes it’s about money they DESERVE to get paid too. What’s wrong with that? This isn’t considered as a GREEDY to me, but they are human being they just need what they deserve to have. They work, they want to get paid. Simple as that!!!!
For Kara, I don’t have much to say about these girls, it’s not that I don’t like them. It’s just because I know just their Group Name but not their face and their own name or let say I’m not their fan. So, If the reason for them suing their company is reasonable so I wish the best for all of you. Fighting!
it’s common sense that if you don’t pay your workers the right amount, they won’t be happy… even if that worker is the nicest person in the world, they would leave.
everyone has problems… anybody can sympathize but they still need to be paid their dues.
however you put it, it’s swindling or short-changing
DSP AND WHOEVER’S MOTHER IS USING THE EXACT SAME TONE THAT SM AND YUNHO’S FATHER USED
“THEY LEFT FOR MONEY, THEY LEFT FOR MONEY”
WTFFFFFF TRYING TO BRAINWASH THAT WHOEVER DARES TO FILE A LAWSUIT IS BECAUSE OF MONEY????
people seem to forget that the GREEDY DOGS here are the companies themselves. They’ve earned huge cash from their golden egg but they aren’t satisfied. they wanna squeeze every single cash left out of their artists. GREEDY DOGSSSSSSSSSSSSSS
I feel like ranting again. So much I want to say.
Our world is backwards. Why is it those who work the hardest get paid the least? I would LOVE to see Soo Man attempt DBSK’s dance moves and singing strength. Gone head mr. SOO MAN. WORK.
CEO’s they sit behind a desk all day making phone calls and laughing at youtube videos (personal reference don’t mind me). And they get millons and billons of dollars. King huh…while the faces of the music industry, the artist. The people who put forth actual work (like energy work) are the ones who don’t receive much when it’s their labor, their gifts, that causes everyone above them even receive all that money. Acts like a monarchy.
The world is such a backwards place yo. It is what it is but sometimes I wish it wasn’t this way. I wish that a celeb can make a fortune on their own terms.
Celebrities work hard man and it kind of makes me sad because they do it for the fans (and income duh) but the main incentive is income (duh! that’s how you survive) so when that’s not right nothings right (that’s why I don’t get the greed argument). I hear stories of celebs rarely getting sleep (having to use drugs to keep themselves up because without the rejuvenation of sleep they’re demented) going to bed at 4 in the morning, interview this, dance that, sing this, promote that, eat this, drink that, don’t talk to that person, arrive here, no breaks, don’t sleep you have a plane to catch, jet lag. Why can’t it be on the celeb’s terms. It’s their talent, face, and image being sold. When it’s on the celebs terms in how they want to make their income in the music industry, I feel more better being a fan because I know my support will benefit them directly. It’s why I cringe when celebs join major labels because I know they will not get all they deserve and these major labels make it bad for independent artists with the claim ‘you won’t make it without being ‘official’.
Grr…we need to make it to where being a ‘independent’ artist is cool. They don’t have to depend on the high quality and wide distribution of a major label.
i will love to se lee soo man dancing too baloon and mirrotic by dbsk..
and sing bolero , love in the ice, why did i fall in love with you.. and other high pitched songs of tvxq…
** wonder what the outfcome will be..
*** dancing monkey/ baboon… singing like a parrot…
but i do not want seeing a geezer dance or sing LOL Im picky….I will puke blood to death. owh the mental image of it. Delete-empty recycle bin ~~~~
9mm –> it’ll still be hidden somewhere in your “system”.
Try hard reformat!! Lol^^
lol….ha ha ha your comment is so hilarious.
Ugh, if I see him singing and dancing to those songs,I would feel like I’m in a circus. lol
@shadow….u just have to make me having a flashback urgh~~~~
This industry is so unhealthy. These contracts and working conditions are inhumane and this article makes me sick. The way it is written to make it seem like the girls are at fault? DSP and SM and other like-minded companies must think the general public are really gullible and dumb.
These stars are not machines and cannot possibly put up with such schedules with no compensation. $3,000?. That is such a pitiful amount of money and considering the work load and schedule they have to keep up with it’s shocking.
I now worry about these poor girls and how they will handle the stress of the up coming months. JYJ have had it so hard and continue to battle the industry on a daily basis. I don’t know if these girls are as strong as our boys and they don’t have anywhere near the international fanbase that DBSK5/JYJ have.
I will try and support these brave girls as best as I can.
As much as really want this Kara incident to help JYJ, i don’t think it helps JYJ case in anyway.
Have you all heard, seems like Hara has decided to stay with DSP. so its deja vu 3:2 all over again.
But this problem is different from JYJ’s case, because, it seems to be fundamentally about money alone to me. I don’t know whether it’s true, but DSP stated that
“ncome made from the girls’ Japanese albums are calculated three months after its initial release, and 85% of the profits go to the distribution company, leaving DSP with the remaining 15%.”
I just hope the Kara girls know what they are doing.
And for JYJ case, it’s so clear that the fundamental problem is that the contract should not even exist in this 21s century.
Somehow I’m afraid one by one, the remaining 3 Kara girl will decide to stay with DSP too
Yeah, especially with Hara’s last minute change of mind. It’s just gonna be harder for the remaining 3 to go on with their stance. But the difference between Kara and TVXQ is that DSP really needs them right now as the company does not have another group that can match with their popularity. I hope that even if the remaining 3 decide to stay with DSP, at least there will be come change concerning the contracts.
after getting an award for her stint on Invinsible Youth, I think Hara has the most to lose.. I hope this doesn’t turn as ugly as what’s happened to JYJ’s lawsuit though
so KARA just whine?
It is so sad but most of the people see this issue is a money problem. Yes, money is a problem for God’s sake! but not the ONLY problem.
As an employee I am also living this, working too much but gaining less. They should get the money what they truly deserve it is really an important thing. They should work for themselves not for a greedy company.
This system is wrong and if they don’t want to be a part of it you can not blame them.
dont even anybody start to say the same shits like: “they gain their popularity with SM, they are idols, if they don’t want to be idols why do they chose SM in the first place etc.” do they have another choice? You can not know what will happen before you don’t live. they were young. they changed their minds, they live troubles, they saw something that they don’t like…so do they have to stay forever with this company and ruin the rest of their lifes?
I am happy for these girls they changed their minds before it is too late. I wish JYJ would do this years before. Once I learn more things about the system and SM like companies, I don’t ever want JYJ to work with them without a fair contract.
Even in this KARA issue they find a way to accuse JYJ. Grow up people and learn more about this issue first. Money is needed yes but they keep losing much more money while they are dealing with this lawsuit and the other troubles so how can someone see the money as a main reason?
Well, I don’t know, I think the reason for Kara’s lawsuit was different with JYJ, I just hope that JYJ wouldn’t be suffereing from all of this. But at least, it would attract the others’s attention about what happen in South Korea
SO KAra case is not like JYJ, they’re wrong if they think they can win be JYJ .
JYJ have great talent, they can make a good group even with just 3 members,for KAra, I’m not bashing anyone but they dont have that true talent, their MV with MR is not good.
And with the JApan contract, their company only have 15% , so of course they can not have much.
There’s no hope for them. I think they ‘ll come back to the company.
Eh…I would just say that the case with KARA is just different from that of JYJ. I do think that for the three girls to go against the whole system like JYJ is just too tough for them, considering their overall national/overseas popularity or others. But KARA is something DSP can’t afford to lose, unlike SM (even though TVXQ is also like the most popular, SJ/Girl Generations are not too far away from them). DSP has already lost SS501. I really hope that this thing gives DSP a real kick and makes DSP to revise a better contract for KARA girls.
P.S. I’ve heard that some fans are bashing JYJ and JYJ fans for like taking the lead! WTH!!!!
those fans should really close their biasness for a while and sit and think == would those fans really like to see their idol underpaid? over work? do those fans truly care and love their idols enough to able to see them not being singers again? well it’s up to THOSE fans to decide whether they love their idols truely or not cause right now it seems kara girls need them the most and they turn blind eye just to bash our boys when their girls are in difficulty == i seriously doubt those ppl are true fans
they are leaving for money
WTH thats stupid werent those the same reasons JYJ supposedly left it pisses me off because of the assumption if those girls had REALY left for money then they would of stayed i mean those girls are HUGE in japan and they are even predicted to win lots of awards like i had said with the boys situation i think the media should butt out they are going to make it worse and the 4 girls are all ready getting antis but i hope those 4 girls gain their happiness cuz i saw all the work that was being piled on them and their happens to be a 16 year old girl in the group and that is too much for a young girl like her to handle. girls at that age should have plenty of rest as well but i didnt see anything that mentioned any days off. im happy to know that JYJ fans are giving their support to kamilias and thw girls. i wonder if they will be blocked in korea now?
Korea entertainments line r seriously a joke….3000usd?????….i can easily earn more than them anytime by my odd jobs…my goodness….now i am wondering how much each Super Junior can earn….what a shame!…fighting JYJ..fighting KARA!..U guys deserve more!!!