On July 24th, the Fair Trade Commission (hereafter FTC) revealed that they have ordered SM Entertainment and the orea Pop Culture and Arts Industry Coalition (hereafter KFPCAI), who have been obstructing JYJ’s broadcast activities, to cease their obstructive actions.
The FTC found that SM and the KFPCAI have worked together to request businesses’ in the industry to prohibit JYJ’s appearances on broadcast programming and musical distribution after JYJ, who were active as members of TVXQ, formed in October, 2010.
**The KFPCAI and SM collaborated in November, 2010, to send documents requesting that JYJ be prohibited from appearing on public broadcast and engaging in music distribution. Including the music distribution company Warner Music Korea, the documents were sent to 9 broadcast stations, 11 music distributions, and 5 online music service companies, making that 26 companies in total.**
The documents stated that JYJ “signed with another company (i.e.: having a double contract)” and other unconfirmed speculations that SM unilaterally relayed. SM one-sidedly warned in the documents that having JYJ appear on their broadcasts and helping JYJ distribute their music can bring about legal issues.
JYJ sold 300,000 copies of their first album and achieved great success, but after the KFPCAI sent the aforementioned documents, JYJ faced immense obstacles promoting as singers domestically, not being able to appear on music and variety programming and left out on music rankings for music shows.
Finding that SM and the KFPCAI obstructed the activities of JYJ, the FTC said that they have broken fair trade legislations and ordered SM and the KFPCAI to cease their actions.
The KFPCAI was ordered to relay this order to the 26 companies they pressured to prohibit JYJ as well as the 12 companies that comprise of the KFPCAI.
In July of 2009, JYJ’s three members, who were active as members of TVXQ, stated that their contract was unfair and requested to void the contract with SM Entertainment, commencing a long legal battle.
After numerous legal proceedings, the lawsuit ended with mediation being accepted by both sides in November, 2012.
A representative from the FTC stated, “The unfair agreement and actions of the entertainment companies proved to be a social problem, but regardless personal opinions of artists and demands of the public, entertainment companies have been dictatorial about management system. “ and “We anticipate that the happenings of this event will serve as a warning to similar unfair practices that may appear in the future.”
[NEWS] 130724 Fair Trade Commission issues a sanction against SM Entertainment and KFPCAI for interfering with JYJ’s activities
Like most Kpop fans know, for a while now, JYJ has not been able to promote freely in Korea due to their past issues with SM Entertainment. Broadcast stations and music distributors never offered a complete explanation as to why this is the case, but fans suspected all along that SM Entertainment was applying backdoor pressure.
The Fair Trade Commission or the FTC has been looking into the issue and has finally confirmed that the parties responsible for JYJ’s lack of broadcast activities are SM Entertainment and ’Korean Federation of Pop Culture and Art Industry (KFPCAI)’.
Having confirmed the two’s role in blocking JYJ’s activities, the FTC issued a sanction today (July 24th KST) ordering SM Entertainment as well as KFPCAI to stop interfering with the group’s activities.
According to the FTC, SM and KFPCAI issued out a statement asking broadcast and music insiders to restrict JYJ’s broadcast activities and appearances during the release of JYJ’s first album in 2010.
A FTC rep commented, “Despite JYJ’s high album sales, their activities as a singer was restricted in Korea, and had to promote through areas where SM’s influence was less like dramas, musicals, and advertisements.”
SM also asked Warner Music Korea, the distributor of JYJ’s 1st album in 2010, to stop the distribution of the group’s album.
KFPCAI also helped SM by issuing out statements to Warner Music Korea, as well as 3 major broadcast stations and 6 music and cable stations, and 11 album retailers and 5 online music service sites, requesting that they restrict JYJ’s broadcast appearances and music distribution.
In these statements, KFPCAI only included SM’s side of the story and warned that the broadcast stations and music sites would be becoming implicated in the legal problems of JYJ and also pushing Hallyu and pop culture a step back, if they did not restrict JYJ’s activities.
FTC commented, “SM, one of the big 3 agencies, and KFPCAI, which is composed of various organizations involved in the entertainment industry, applied incredible pressure on companies and as a result, JYJ experienced cancellations of music and variety programs, change in music ranking, and cancellations of documentaries and theater screenings.”
The FTC has found SM and KFPCAI in violation of several policies and has ordered a sanction as well as corrective measures so that JYJ’s activities will not be further restricted due to their past legal issues with SM Entertainment.
As part of the corrective measure, the KFPCAI will have to issue a statement to the 12 organizations and companies that make up the KFPCAI as well as 26 companies, including broadcast stations and music distribution sites, regarding the sanction they have been issued by the FTC.
A FTC rep commented, “This is a case in which we prohibited large-scale agencies from using their influence to pressure businesses to interfere in the promotional activities of celebrities whom they are in a dispute with.”
With this sanction in place, hopefully we will soon see JYJ freely promote on various music and variety programs!
[NEWS] 130724 Fair Trade Commission Orders SM Ent. to Stop Interfering With JYJ′s Promotions
The Fair Trade Commission (FTC) ordered SM Entertainment to let up on its pressure on JYJ.
The FTC stated on July 24, “We told SM and the Korea Pop Culture and Arts Industry Coalition to stop interfering with others′ business activities, and ordered them to notify related institutes, such as broadcasting companies, of this fact.”
According to an investigation by the FTC, SM and the Coalition had sent an official notice in October 2010, after the JYJ members left TVXQ (DBSK), to 26 broadcasting companies and album distributors, asking them to refrain from casting JYJ or from distributing their music.
The FTC judged that considering the influence of SM and the Coalition in the industry, this notice would have pressured those who received it, and interfered with JYJ′s promotions as a singer.
On this, JYJ′s agency C-JeS Entertainment commented, “We thank the FTC for its decision. This fight started in 2009 and had since made us feel like we′ve been walking a desert with no end, but today′s announcement made us feel that things were becoming better, and we felt we had been supported.”
“We hope this notice will help [us] promote fairly before the public, and also open new doors for our juniors,” it finished.
SM Entertainment, on the other hand, said about the decision, “We′re sorry such a decision was made because we′ve never interfered [with JYJ′s promotions]. SM is considering taking legal measures on the decision.”
Park Yoo Chun, Kim Junsu and Kim Jae Joong left SM and its former group TVXQ after lodging a lawsuit against the agency. The three have been performing as JYJ.
[NEWS] 130724 FTC orders S.M. to correct wrongdoings against JYJ
The dispute between S.M. Entertainment and K-pop idol group JYJ has come to an end as Korea’s antitrust agency ordered S.M. Entertainment to correct and undo its wrongdoings against the three-member boy band.
The Fair Trade Commission said Wednesday that it sanctioned S.M., one of the top three talent agencies in Korea, for its attempts to block JYJ from appearing on music television shows and distributing their albums over the years.
S.M., in collusion with the Union of Korean Pop Culture and Arts Industry, a collective federation of artists promoting Korean culture and arts at home and abroad, has abused its power as a dominant entertainment agency by relentlessly hindering JYJ’s expansion since the boy group broke off its relationship with S.M. in 2009, according to the FTC.
S.M., which counts artists such as Girls’ Generation and Super Junior on its books, made a net profit of 37.1 billion won ($33 million) in 2012. It holds a share of more than 30 percent in the music album market, and is one of the key members of the UKPCA, the FTC noted.
The conflict between S.M. and JYJ began three years ago when the three idol members, who were part of S.M.’s five-member boy band Dong Bang Shin Ki formed in 2003, accused their former agency of carrying out an unfair contract.
Three members of DBSK then officially broke away from S.M. and formed their own group called JYJ with C-Jes Entertainment.
But the two sides continued to battle, filing injunctions against one another. JYJ asked the court to suspend and annul its former contract with S.M., while S.M. tried to stop distribution of JYJ’s first album via Warner Music through a court order.
The UKPCA also sent official letters to 26 TV stations and music wholesalers asking them not to promote JYJ, making it harder for the group to appear on music and variety shows.
C-Jes welcomed the FTC’s decision, saying that it hopes from now on that JYJ as well as future artists can “fairly” perform and appear before the public without the influence of big market players.
Source: The Korea Herald
[NEWS] 130724 Fair Trade Commission orders SM Entertainment and KFPCIA to stop interfering with JYJ’s activities
By Korea Star Daily | KpopFighting.com
The Fair Trade Commission (FTC) has issued an order today, demanding that SM Entertainment and the Korean Pop Culture and Arts Industry Coalition (KPCAIC) to stop interfering with JYJ’s activities. With regards to that, the JYJ members have expressed their thanks to FTC in the aftermath.
JYJ said through their agency, C-JES Entertainment, “We thank the FTC for their decision. We have been fighting arduously since 2009, and it felt like we were walking in a desert with no end in sight. But we felt that things have been changing for the better, and we have gained a lot of strength from it. With this order from FTC, we hope that we can perform on fair stages and go about our activities in a better environment. We also hope that this helps to open the doors for our juniors.”
JYJ also expressed, “After this ray of light, we will continue to march forward towards this light, and work even harder to repay everyone for their support all this while.”
Through investigations done by FTC, they found out that in the period when JYJ released their first album, SM Entertainment and KPCAIC had sent notices to 26 broadcasting companies and album distributors, asking them refrain from using JYJ members in their programs or from distributing their music. They claimed that the continued presence of JYJ would result in the decline of Korean culture and cause harm to the growing popularity of the Korean Wave. In the aftermath, JYJ found much difficulty in doing activities within South Korea and decided to move their focus to overseas, and this contributed to JYJ’s diminishing presence in their home country.
By: Kwak Hyun Soo