This news is not new, as we even reported in February on theJapanese media criticizing Korean singers for their lawsuits and supposed greed for money. Around the same time, KARA went through a roughly 100 day-long dispute with DSP Media when they wanted to cancel their contract over the way they were being treated but in the end dropped the lawsuit.
While the K-pop industry is a large part of Korea's economy, having racked up $30 million in sales in 2009 and most likely having doubled that in the last year, one of the biggest problems between artists and their management is their "slave contracts." Many fans are familiar with DBSK's case two years ago, when the members filed a lawsuit and claimed that their 13-year contract was "too long, too restrictive, and gave them almost none of the profits from their success."
As a result of the case, the Fair Trade Commission created a "model contract" for DBSK and other groups to ensure that they would receive better deals from their management companies. This was an essential step in helping the artists, as according to entertainment Im Sanghyuk, "there hasn't been much of a culture of hard negotiation in Asia, especially if you're new to the industry."
However, this has not proven to be a fix-all because Rainbow's parents were reportedly "'heartbroken' at how little they were getting paid." While the K-pop industry definitely generates a lot of revenue, after all the costs are paid, even DSP Media admits that not much is left for the artists themselves.
As is true not only in Korea but worldwide, CD sales have decreased and online music sales are not nearly enough to provide sufficient profit and cover production costs. According to head of DFSB Kollective Bernie Cho, overseas markets, concerts, and advertising are more profitable than music sales, but the industry is difficult to keep up and will not stay afloat forever.
What do you think about this commentary on the not so glamorous aspects of the K-pop industry?
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