Kakao Entertainment cleared of discriminatory music distribution fee allegations

On July 4 KST, the Korea Fair Trade Commission (FTC) ruled Kakao Entertainment not guilty of discriminatory music distribution fee allegations.

Previously in January of 2024, entertainment agency Big Planet Made filed a report against Kakao Entertainment, claiming that the music distributor charged discriminatory music distribution fees. According to Big Planet Made, Kakao demanded distribution fees in the 20% range to most entertainment companies while only charging 5~6% for subsidiaries like SM Entertainment. 

While Kakao Entertainment strongly denied Big Planet Made's accusations, the Fair Trade Commission set out to investigate the report by collecting evidence at the Kakao Entertainment headquarters.

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