The Korea Fair Trade Commission (KFTC) is conducting an investigation into K-Pop management agencies. The focus of the investigation is to determine if these agencies have violated antitrust laws in their dealings with subcontractors. Violations may include verbal contracts instead of written ones, unfair contracts, or delayed payment.
The KFTC’s investigation was prompted by a report from the Korea Creative Content Agency (KOCCA). The report revealed that some K-Pop agencies were not fulfilling their financial obligations to subcontractors or providing written contracts. Additionally, the report highlighted the use of unfair contracts that granted excessive power to the agencies over their subcontractors.
The outcome of the KFTC’s investigation could have significant consequences for the K-Pop industry. If any agencies are found guilty of antitrust violations, they may face fines or be required to change their practices. As a result, K-Pop fans might experience increased costs as agencies transfer the burden of fines or practice changes to customers.
Although the investigation by the KFTC is still ongoing, its mere existence has already negatively impacted the stock prices of major K-Pop management agencies. Shares of HYBE, SM Entertainment, and YG Entertainment all experienced a decline on Wednesday following the news of the investigation.
It will be intriguing to observe how the KFTC’s investigation unfolds and what consequences it ultimately has for the K-Pop industry.
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