Group FIFTY FIFTY filed a lawsuit against their agency Attrakt, taking issue with their exclusive contracts due to issues such as settlement.
The temperature difference of public opinion on the two sides is sharply divided.
FIFTY FIFTY seems to be having a hard time getting rid of the stigma “betraying idols” amid controversy.
Sports Seoul exclusively reported on July 10th that the reason for the lawsuit filed by FIFTY FIFTY against their agency Attrakt is expected to become meaningless.
According to the report, Interpark, which signed an advance payment contract with StarCrew Ent, expressed their view that “the investment contract is not an investment amount for FIFTY FIFTY and the members are not obligated to repay it“.
Earlier, FIFTY FIFTY raised the question about the 9-billion-won advance payment distribution contract between Attrakt’s CEO Jeon Hong Joon and the private company StarCrew Ent, which was made with the investment from Interpark Music, after the first hearing regarding FIFTY FIFTY’s injunction application for the suspension of exclusive contracts with Attrakt held at the Seoul Central District Court in Seocho-gu, Seoul on July 5th.
At that time, FIFTY FIFTY’s lawyer claimed that 6 billion won out of 9 billion won was used for FIFTY FIFTY’s album investment, and the revenue from album and music sales was paid to StarCrew Ent. They questioned, “Why did CEO Jeon sign a contract with an unrelated company? In normal, it should have been a 9-billion-won advance payment distribution contract between Interpark and Attrakt. StarCrew Ent is responsible for the debt, but it is FIFTY FIFTY who is repaying it.“
However, this is a common misunderstanding among those who do not know the process of advanced investment contracts in the entertainment industry.
An official from Interpark Music explained, “The reason that we signed an advance payment contract at that time was mainly due to the successful activities of Ha Sung Woon, who used to be an artist under StarCrew Ent, as well as Jeon Hong Joon’s capabilities, abilities and driving force. Interpark Music had confirmed that StarCrew Ent had the intention to produce a girl group. Back then, the team name ‘FIFTY FIFTY’ was still undecided, and The Givers’ CEO Ahn Sung Il had not joined the project yet.”
Advance payment contracts for music and album production are one of the ways small and medium-sized planning agencies secure funds for artist production. It is considered the most common method, where funds are received in advance for investment in production costs after music labels promise to release music and albums. The advance payment and artist settlements are not related.
The official said, “We know that some of the 9 billion won invested in StarCrew Ent was used for FIFTY FIFTY. Since the debut of FIFTY FIFTY was approaching at that time, StarCrew Ent established a new company called Attrakt. We also considered transferring the existing contract from StarCrew Ent to Attrakt, but the full amount of 9 billion won investment is not solely for FIFTY FIFTY. It is an investment amount for other artists, including Ha Sung Woon, so the transfer to Attrakt was delayed.”
The official stated, “FIFTY FIFTY’s lawyer’s argument that Interpark should have signed the advance payment contract with Attrakt does not make sense at all. The members claimed that they earned 0 income from album and music sales from December last year to April this year. However, the release of ‘Cupid’ in February gained more attention overseas, making it difficult to receive settlements immediately separate from the advance payments.“
FIFTY FIFTY, which debuted in November last year and enjoyed global popularity, emerged as a “miracle of small and medium-sized companies”, but the conflict has deepened with members filing a lawsuit against their agency.
Source: Insight
