The Fair Trade Commission (FTC) has turned its attention to the entertainment industry, following its investigation into unfair subcontracting practices in the gaming industry.
The FTC has launched a comprehensive on-site investigation to determine whether the “Big 5” entertainment companies [HYBE, SM, YG JYP] have engaged in unfair contracts during the album and merchandise production processes. FTC Chairman Han Ki-jeong has expressed the determination to uproot unfair practices in the content industry for the sustainable development of the Hallyu wave.
According to industry sources on the 4th, the FTC’s New Industry Subcontracting Investigation Team conducted on-site inspections at the headquarters of YG Entertainment in Mapo-gu, Seoul, and HYBE in Yongsan-gu. The FTC is also planning on-site investigations of SM Entertainment, Kakao Entertainment, and JYP Entertainment next week. The goal is to thoroughly examine unfair subcontracting practices within the domestic entertainment companies’ operations.
In particular, the FTC is expected to scrutinize unfair contract practices related to album and merchandise production as well as performances. The main areas of focus include verbal agreements in outsourcing processes, unfair special clauses, and delayed payment of subcontracting fees.
Its important to note this is not related to kpop idols contracts with their companies.
Chairman Han also stated, “Although the content industry, including dramas and films, is receiving increasing attention as a core value-added industry in our economy, there are many unfair practices in the content sector. We plan to focus on monitoring verbal agreements, unfair special clauses, and delayed payment of subcontracting fees, especially in the outsourcing process.”
Source: (A)
