Structure of an Exclusive Management Agreement for a K-Pop Artist (Standard Form Contract)

Posted by Joseph Hwang Joseph Hwang 5/26/2024

Structure of an Exclusive Management Agreement for a K-Pop Artist (Standard Form Contract) - Part 1.

Joseph Hwang

* Attention: This article is based on the latest version of the "Standard Form of Exclusive Contract for Musicians (hereinafter referred to as "SFEC", Notice No. 2024-0021, Ministry of Culture, Sports and Tourism of the Republic of Korea, amended on June 3, 2024)."

1. Purpose of the Agreement (SFEC, Article 1.)

The SFEC defines the purpose of the contract as follows: "This Agreement is hereby based on the premise that the Promoter (Company) and the Singer (Artist) actively cooperate for each other's mutual benefit and development, and aims to promote mutual benefits by allowing the Singer to develop his/her talents and qualities through his/her best efforts, as well as to cherish his/her honor and reputation as a pop culture artist, and the Promoter to faithfully provide management services to maximize the Singer's talents and qualities and to maximize on behalf of the Singer's interests therein".

The entertainment industry, South Korea, the Korean government and the court, prior to the establishment and announcement of SFEC, had tended to center their weight on the rights and interests of the artists against the management companies. Because, as entertainers, some of the artists who want to debut to the public through the media are juveniles. The juvenile artists must be protected and prevented from criminal issues such as sexual harassment, exploitation, overdue payment of profit sharing, etc. and the media press has accused the social irregularities of exposing the structural dangers in this industry. So this situation related to the public opinion to improve, and it drove the pressure to establish the SFEC or to act on any other legislation of the Congress.

As a result, the SFEC and the "Popular Culture and Arts Industry Development Act" were established and implemented.

But the SFEC is not only for artists. It's also for the entertainment companies. Since the Korean government was more concerned about protecting the rights and interests of the artists than the entertainment companies when the SFEC was first established, after a while some of the artists began to try to TAMPER beyond their management companies. TAMPERING is the act of the artist who is under contract with the management company secretly contacting other companies for the purpose of transfer even under the exclusive artist contract. It's a certain condition of breach of contract.

Therefore, the Korean government has continuously revised and amended the Supplement of Equivalence between Artists and Companies. The SFEC is applicable to all contract parties due to the written "Purpose of the Agreement", Article 1.

* Standard contract analysis continues in the series.

** References and quotations:

https://thediplomat.com/2022/12/the-dark-side-of-k-pop/

https://koreaexpose.com/k-pop-korean-music-musicians-labor-abuse/

Series Articles

Overview

https://www.musicbusiness.co.kr/2024/05/structure-of-exclusive-management.html

Part 1.

https://www.musicbusiness.co.kr/2024/05/structure-of-exclusive-management_26.html

Part 2.

https://www.musicbusiness.co.kr/2024/06/structure-of-exclusive-management.html

Part 3.