After VIVIZ’s Agency’s Accusations, Kakao Denied Mistreating Small Companies In Setting Music Fees

Kakao Entertainment said in an official statement on March 25th, “We have been negotiating with a number of domestic and foreign partners for many years to sign album and content distribution contracts according to strict and objective standards, and we once again clarify that we have not provided any unfair benefits to certain partners.”

“The distribution commission rate applied when signing album and content contracts with partners is determined in consultation with the other party in consideration of various conditions such as whether to invest in advance payments provided to the other party, contract period, offset rate, and valuation of the distribution target title,” it said.

The entertainment giant added, “Being whether or not a Kakao affiliate is not a standard for calculating the distribution commission rate at all. We ask for your understanding that we cannot give you the details of all contracts, except the contracting parties, due to confidentiality obligations, and disclosing them violates the contract as well.”

Previously, Big Planet Made, VIVIZ’s agency, reported to the Fair Trade Commission in January of Kakao Entertainment’s imposition of discriminatory distribution fees between its affiliates and non-affiliate partners.

The company said, “We will submit additional data that we will secure to the Fair Trade Commission in the future and sincerely respond to the investigation to reveal the truth, while making every effort to ensure that good small and medium-sized agencies are not harmed by Kakao Entertainment’s discriminatory distribution fees and selective contract changes.”