FIFTY FIFTY's argument for the provisional injunction of the exclusive contract is expected to lose validity
AKP STAFF
www.insight.co.kr
The group FIFTY FIFTY has recently taken legal action against their agency, ATTRAKT, challenging their exclusive contract and citing concerns regarding settlement issues. The public opinion on this matter is divided, with differing views from both sides.
FIFTY FIFTY appears to be struggling to shake off the titles of being a 'backstabbing idol' or a 'betrayal idol' amid the ongoing controversy.
On July 10, Sports Seoul reported exclusively that the lawsuit filed by FIFTY FIFTY against ATTRAKT for a provisional injunction of the exclusive contract is expected to lose its significance as the members' arguments are losing validity.
According to the report, Interpark, which had signed an advance payment contract with Star Crew ENT, expressed that "the investment contract does not involve the FIFTY FIFTY members, and the members have no obligation to repay any debts."
In a previous court hearing on the injunction application to suspend the exclusive contract's validity, held at Seoul's Central District Court in Seocho-gu on July 5, ATTRAKT CEO Jun Hong Joon raised eyebrows. The CEO had signed a contract advancing a payment of 9 billion KRW from Interpark Music to Star Crew ENT, a private company, sparking curiosity.
The legal representative asserted that 6 billion KRW out of the 9 billion KRW total was invested in FIFTY FIFTY's album production, with the revenue from the music directed to Star Crew ENT. The lawyer added, "The contract was mistakenly made with the wrong company. It should have been with Star Crew ENT. They should bear the debt, not FIFTY FIFTY."
However, industry insiders have dismissed this argument as a common misconception among those unfamiliar with the intricacies of the advance investment contract process within the entertainment sector.
An official from Interpark Music clarified, "The rationale for the advance payment contract stemmed from Ha Sung Woon's success, a member of Star Crew ENT, and the experience, capability, and driving force provided by CEO Jun Hong Joon." At the time, FIFTY FIFTY had not yet established its team name, and Ahn Sung Il, CEO of The Givers, had not joined the project.
In short, advance contracts for sound recordings serve as a financial strategy often utilized by small to medium-sized agencies to offset production costs. The advance payment is allocated for the creation of the artist's records and to support the company's operating expenses, thus bearing no direct relation to the artist's settlement.
The official further clarified, "I understand that a portion of the 9 billion KRW invested in Star Crew ENT was used for FIFTY FIFTY. However, the entire amount is not solely for FIFTY FIFTY. It is an investment for Ha Sung Woon and other artists, and the transfer from ATTRAKT has been put on hold."
According to Interpark Music officials, the argument made by the members that "they had to sign an advance contract with ATTRAKT" is incorrect. Additionally, an official pointed out, "The members claimed that from December of last year to April of this year, they earned no revenue from music and albums. However, since their release 'Cupid' gained significant attention overseas, it is difficult to settle the accounts immediately, apart from the advance payment."
FIFTY FIFTY made their debut in November of last year and gained global popularity. They were initially celebrated as the 'miracle group of small-mid-sized company' However, the conflict has intensified, leading the members to file a lawsuit against their agency.
