Music

Korea Music Label Association Criticizes FIFTY FIFTY Controversy as Detrimental to the Domestic Music Industry

Sep 01, 2023 | by Nobelle Borines

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Yoon Donghwan, the chairman of the Korea Music Label Industry Association (hereafter referred to as the Association), has voiced his opinion on the recent controversy surrounding the girl group FIFTY FIFTY, calling it a "direct issue related to the pop music industry."

On September 1, during an interview on the YouTube channel YeontuYouTV, Chairman Yoon discussed the structure of the pop music industry in relation to the recent rejection of FIFTY FIFTY's request for a suspension of their exclusive contract with their agency, Attrakt. He highlighted several issues that the group raised during their application for the suspension.

Firstly, he mentioned the 8 billion won investment, referencing the advance payment structure for album and music streaming. Chairman Yoon explained, "The advance payment structure offsets the monthly revenue from albums and music streaming. For established stars with guaranteed revenue, it's essential to notify the artist of such investments. However, for newcomers, advance investments are nearly impossible."

He continued, "Receiving an 8 billion won advance suggests faith in CEO Jeon Hongjoon's capabilities and potential. Whether there's a mandatory need to notify the artist in such cases requires further discussion. If mishandled, it could lead to a contraction or even a decline in the music industry." He added, "Initially, there's always a loss. With repeated investments, losses, and profits, there will come a time when profits are made. Raising settlement issues shortly after debut is a misconception."

Regarding allegations of neglecting health management duties and insufficient support for activities, Chairman Yoon stated, "There's no objective standard, making the criteria ambiguous. If limited content is included in the standard contract, legal disputes can easily arise." He further noted, "If lawsuits become rampant, the effectiveness of exclusive contracts could weaken."

In conclusion, Chairman Yoon expressed, "It's regrettable since they were producing good content and achieving commendable results, which ultimately contributes to the advancement of K-pop and the pop music industry." He also raised concerns that this issue might tarnish K-pop's reputation and goodwill overseas, emphasizing, "Since it's a direct issue related to the pop music industry, it needs to be clearly addressed."