FIFTY FIFTY faces crisis of paying damage compensation of up to 50 billion won after losing contract lawsuit

The court reportedly rejected FIFTY FIFTY’s contract termination injunction and ruled in favor of their agency Attrakt.

On August 28th, the Seoul Central District Court’s Civil Conciliation Division 50 rejected the injunction for an exclusive contract termination filed by FIFTY FIFTY members against their own agency Attrakt. In this legal battle, the court eventually ruled in favor of Attrakt. 

As their injunction has been turned down, FIFTY FIFTY is now facing another challenge. There is a high possibility that Attrakt will claim billions of won in compensation for damage from the members.

On the 29th, Sports Kyunghyang revealed that Attrakt can claim up to 51.1 billion won in damage compensation from FIFTY FIFTY. The damages that Attrakt could claim can be inferred according to the standard exclusive contract for popular culture and performing artists.

Although the exact revenue from FIFTY FIFTY’s music sales is not disclosed, the known revenue based on the sales of “Cupid” already ranges from billions to as much as tens of billions won.

Supposing the FIFTY FIFTY has generated 4.5 billion won since their debut, the amount of damage compensation Attrakt could claim from the members would be as much as 23.6 billion won for an average idol contract of 7 years. If the revenue is assumed to be 10 billion won, the amount of compensation could increase to 51.1 billion won.

It is known that Attrakt invested around 8 billion won in FIFTY FIFTY’s debut project. Combining this investment with the potential damage compensation, the agency could claim up to tens of billions of won.

Earlier, a lawyer also estimated the amount of compensation FIFTY FIFTY might have to pay if they lost the lawsuit through a video on his YouTube channel. He emphasized, “The compensation would be very high, and the possibility of reduction is low. The members might have to bear a large amount of damage compensation of up to hundreds of billions of won”.

Source: Insight