Talent firms told to fix unfair deals

Celebrity wannabes and new stars have been kept on a tight leash by some of Korea’s biggest talent agencies, which require them to report in on their location at any given time or even reveal who they intend to date.

The nation’s antitrust watchdog has ordered the companies to correct such contract terms and other unfair practices.

The Fair Trade Commission said yesterday it recently investigated the contracts signed between 10 major agencies, including JYP Entertainment and SM Entertainment, and 354 clients including singers and actors.

The watchdog ordered the agencies to correct or remove unfair terms in the contracts with 204 of the 354, whose names the FTC refused to reveal.

In a statement, the FTC cited “excessive infringement on privacy” among the unfair terms.

For example, JYP Entertainment, which now manages K-pop girl group Wonder Girls and once had top star Rain on its roster, requires entertainers to “consult in advance with the agency regarding changes in their private life, such as school activities, nationality, military service, dating and economic activities, and to follow the agency’s direction.” The FTC did not reveal which performers had these terms on their contracts.

Olive9, the agency handling the actors Choi Ji-woo and Shin Hyun-joon; Wellmade Star M, which manages actors Jang Dong-gun and Ha Ji-won; and Phantom Entertainment, who have contracts with singer Yoon Jong-shin and announcer Kim Sung-ju, require some entertainers to report where they currently are at any time. The FTC ordered the agencies to abolish these terms.

Another unfair provision requires entertainers to participate in events sponsored by the agencies or their Internet broadcasting arms, the FTC said. In particular, SM Entertainment, known for creating many K-pop idols including boy group Dongbangsingi and female singer BoA; and Mnet Media, to which the singer Lee Hyori is signed, require some entertainers to appear for free in their Internet broadcasts any time the agencies ask them to. The FTC ordered this kind of clause to be changed.

“Many young or new entertainers fall victim to unfair contracts with agencies, and there are some entertainers who are under such contracts for 10 years,” said Kim Sang-jun, head of the FTC’s market watch team.

“We will fine the agencies that do not follow our orders.”

By Moon So-young Staff Reporter [symoon@joongang.co.kr]