[Y이슈][Y초점] Lee Seung-gi vs Hook, what will be the breakup procedure? “It usually takes more than a year”

Singer Lee Seung-gi has served notice of the termination of his exclusive deal with his agency Hook Entertainment, which has recently been in conflict over liquidation of profits. Did the two sides split?

Considering the numerous instances in the past where management and artists have split due to conflicts, it’s regrettable that it’s not over until it’s over. There are still many steps to go before the two sides fall apart.

Park Seong-woo, an entertainment lawyer who has dealt with numerous disputes between managers and artists, said, “It depends on the case, but usually it can take more than a year.”

When an artist announces that they want to terminate their contract, the agency’s response is the first priority. Depending on whether the agency recognizes and accepts the reason for the termination of the exclusivity contract claimed by the artist, the procedure differs significantly.

It is best if both parties have come to a mutual agreement. Avoiding a lengthy lawsuit and terminating the exclusivity agreement through an agreement. The breakup between Hyuna and Cube Entertainment is a prime example. However, other than that, actually in the Korean entertainment industry, it is extremely rare for both parties to part ways by mutual agreement after one party has given notice of termination of the exclusivity agreement.

In fact, it’s hard to find a case where an agency that has received a cancellation from an artist admits that they have violated the law or the contract. Attorney Park Seong-woo said, “For the exclusive contract to be terminated, there must be a legal or contractual reason for the termination, and in most cases, both parties argue over whether or not there is a reason for the termination.” resolution”. it must be rare,” he said.

What happens if the agency accepts the artist’s request and admits the reason for the termination of the exclusive contract? However, the exclusivity agreement is not terminated immediately. Attorney Park said, “Unless the termination of contract is recognized or the breach of contract is not very serious, it is unlikely that the contract will be terminated immediately.” However, the fact that the agency has admitted to breach of contract is highly likely to work against the company in future lawsuits.

Even if there are grounds for exclusive contract termination, i.e. breaches of contract recognized by both parties, there is still a chance to resolve the conflict. In most exclusive contracts, it is stipulated that the correction of contractual breaches is required, and if the correction is not made within 14 days from the date of the request for correction, the contract may be canceled or terminated. In this regard, the lawyer Park added: “Even if there is a breach of contract, it means that the wrong can be remedied if it is corrected within the time limit.”

Even if it is corrected, this does not mean that the contract can be continued unconditionally. Circumstances also vary depending on the severity of the breach of contract. “If the breach of contract seriously harms the relationship of trust, stated the lawyer. Park, the recent trend in court adjudications is to recognize it as cause for termination separately from the contract clause relating to the request for correction.

As a result, it is a common reality that most artists who have had conflicts with their former agencies, such as Lai Kuan-lin, Kang Daniel, Park Yu-chun and JYJ Group, have initiated lengthy legal proceedings after being informed of the termination of their exclusive contracts. This is also why many industry insiders are predicting that a lawsuit will be filed between Lee Seung-gi and Hook Entertainment.

What will happen to the artist’s activities if he starts a full-fledged lawsuit? Attorney Park explained, “I usually refrain from individual activities during a lawsuit. This is because, depending on the outcome of the lawsuit, we may be liable for substantial damages.” She said, “This is especially true when the court decides to grant an interim injunction to ban entertainment activities or rejects an application for an injunction to suspend the validity of an exclusive contract.”

YTN star Oh Ji-won

* YTN star gets referrals related to celebrities and people in the entertainment industry.
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[저작권자(c) YTN 무단전재 및 재배포 금지]