Korea Management Federation (KMF) Releases Official Statement Welcoming Ruling in Favor of the Plaintiff

KMF assessed this ruling as an important decision that reaffirmed the stability of the exclusive contract system, which forms the foundation of the K-pop industry. The federation has consistently pointed out that this situation could potentially shake the very foundation of the entire K-pop industry, which is based on trust between artists and production companies, and has expressed serious concerns about the collapse of contractual order and trust within the industry.

Accordingly, KMF has actively responded from the early stages of the dispute by issuing official statements and calling for the industry’s self-regulatory efforts, emphasizing “protection that guarantees the reliability of contracts” based on the standard exclusive contract, and working toward a swift resolution of the situation and maintenance of industry order.

As an extension of these efforts, KMF highly commended the first instance court’s ruling recognizing the validity of the contract as a reasonable decision to protect the fairness of the industry, and expressed expectations that it will serve as an important milestone for the sustainable development of K-pop.

KMF Chairman Yoo Jae-woong stated, “We respect and welcome the court’s wise judgment today,” adding, “As the industry has expressed many concerns and actively responded in light of this situation, we hope this ruling will serve as an opportunity to solidify the industry’s practices based on the standard exclusive contract and the trust in contracts.”

Chairman Yoo added, “KMF will continue to do its best to foster a healthy industry ecosystem and create an environment where the rights and interests of both artists and production companies are mutually respected.”