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Fair Trade Commission corrects 6 unjust terms in trainee contracts from SM, JYP, YG, Cube, & more

By beansss   Tuesday, March 7, 2017   151,910   10,587   206



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According to a report by the Fair Trade Commission (FTC) on March 7, a total of 6 unjust terms within trainee contracts used by large-scale entertainment companies has been corrected. 

The entertainment labels whose trainee contracts were involved are SM Entertainment, YG Entertainment, JYP Entertainment, Cube Entertainment, Loen Entertainment, FNC Entertainment, Jellyfish Entertainment, and DSP Entertainment, a total of 8 major companies. 

Trainee contracts, signed between labels and potential debut candidates, or trainees, exist so that labels can legally carry out the process of educating and caring for their trainees. Terms which have been corrected by the FTC recently include:

1. Request of excessive compensation for damages/pressuring trainees to pay compensation fees once they leave the company. (compensations fees amounting to 2-3 times the expenses spent toward trainees will now be changed to only the exact expenses spent.)

2. Fees or penalties applied after the termination of a trainee contract, i.e. a fee owed for signing with another label within 3 years after leaving. (Both will be eliminated; labels will only be able to carry out negotiations to renew or terminate contracts.)

3. Rights of the company to terminate a trainee contract at any time. (Companies will now have to suspend the contract for a given period of time, during which unsatisfactory issues may be resolved. If issues remain unresolved, companies may terminate a contract at the end of the suspended period.)

4. Claiming arbitrary reasons to terminate a trainee contract, such as due to defamation of the company name or investment losses. (They will be prohibited.)

SEE ALSO: Your Golden Opportunity to Attend Korea University Awaits This Winter!

The FTC commented that these changes will "strengthen the rights of trainees" and "bring about a change to the trainee-to-entertainment label contract culture." 

Tip: B

  1. misc.

oldkingpop Sunday, March 12, 2017

Should have changed long ago.  Now all your seniors have ran away and cant help the company already.  You kpop bosses only know how to make the problem a serious of opportunity for you to pocket more money.  Dun forget you are not the only pop music in the whole world,  if you carry on to abuse your kpop employees we can put a stop to support your videos and start watching others youtube/E13jVMczRJg

jinssam Tuesday, March 7, 2017

lol so basically all the big companies are getting slammed. Good, it's about time they were forced to change their contract policies, lord

Tomochi jinssam Wednesday, March 8, 2017

I have a feeling it's even worst for smaller companies

Whoooo Tuesday, March 7, 2017

Yes finally taking action!!

amy_amiable Tuesday, March 7, 2017

👏🏻👏🏻👏🏻 glad they woke up

i_belong_to_yg Tuesday, March 7, 2017

Thank you SME for inspiring most of these wonderful changes!!

nnamia i_belong_to_yg Tuesday, March 7, 2017

HHAHHA i love the shade thrown!

i_belong_to_yg nnamia Tuesday, March 7, 2017

shishh... just between us! :)

hyukki Tuesday, March 7, 2017

#1 sounds like an extortion to me. I can't believe they were allowed in this day and age.  I think they should be able to "sell" the contract to each other. You know like professional athletes? That way artists aren't financially pressured.

chanyeolisbae867 Tuesday, March 7, 2017

Fair Trade Commission saved people again.

3percenter Tuesday, March 7, 2017

About time the kpop slave contracts got a bit less oppressive and exploitative. About time the assholes in suit kpop management companies stopped placing their risk margins onto these poor kids instead of on to their useless selves. No other industry puts the burden of risk on employees instead of management. Management gets paid the big bucks because they are supposed to bear the burdens of their own fucking decisions. There is still far to go in bringing kpop contracts up to civilized standards, but this is a good start.

Julian5 Tuesday, March 7, 2017

They need to do something abt shitty sm banning JYJ from Tv broadcast first... this whole industry is corrupted. South korea is fully corrupted.. what a low pathetic country

lye54 Julian5 Tuesday, March 7, 2017

Korea is a fast-growing country. Technology is the best in Korea however people haven't caught up yet. It's gonna take time before Korea changes completely. You have to give them time.

Julian5 lye54 Tuesday, March 7, 2017

I know bt their tech or whatever doesnt matter to me.. I value a country by its people.. & what s happening with JYJ is beyond cruelty!! May sm rot in hell

jaeprincess Tuesday, March 7, 2017

Just for TRAINEE CONTRACTS only ? How about those who have debuted already, for their idols?

peladocarlos jaeprincess Tuesday, March 7, 2017

Actually, most of them are still under their trainee contracts when they get to debut. Contracts are made to last an specific lapse of time and many artists have to wait for them to expire before being able to move into another agency, in order to avoid the penalties for leaving the company.

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