[NEWS] TV Report uncovers details on the story behind KARA’s contracts

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.

[NEWS] 4 KARA’s members filed to terminate their contract with DSP

Reports of KARA splitting from their agency, DSP Media Entertainment, has sent shockwaves throughout the music industry. The members of KARA, excluding leader Gyuri, reasoned that they had lost their confidence in their relationship with DSP Media Entertainment, and that it could never be regained again.

Landmark, KARA’s lawyers, reported on January 19th:

“Despite KARA receiving much love from their activities in both Korea and Japan, the members have experienced inexplicable pain that brought them to this decision. They’ve held it in for a long time, but in order to protect their rights and their future, the members have decided to part ways from their company.

KARA has tried their absolute best in compromising with their company prior to their decision, but their agency used their power in forcing the members to fulfill schedules that they did not want, and continuously added activities on top of a loaded schedule without prior consent or discussion. The psychological damages that the members were forced to endure cannot be explained in words, and their efforts have gone to waste. Their misery is severe, and they can no longer remain under such a company, which is why they decided to declare their withdrawal.

Trust is the most important aspect of a relationship between an agency and its artist, but the agency has been using KARA as a way to make money. A variety of issues that have not been stated are still present. The agency has decided the majority of the girls’ celebrity activities without any sort of discussion or meeting, and has rejected requests asking for explanations or for proper documents. Their relationship has been destroyed to the point that it could never be restored again.