But Ohhhhhhh what a mess this whole thing has become, The leader of Kara claiming she didn't know anything, the lawyers claiming hardship, the parents getting involved in contract disputes.........see why I try to stay out of this kinda drama?
Now today, apparently Goo Hara is not going to terminate her contract......the first official thing DSP did was to apply to copyright the name Kara..........I'm just sayin..................
DSP Entertainment responds to TV report articleSource:allkpop
by delacroix on January 19, 2011 at 11:18 am
Earlier today we reported details regarding Kara’s contract, uncovered by TV report in midst of this very significant controversy. Edaily, a Korean online newspaper, contacted DSP Entertainment today regarding the report; and here is what the group’s management company had to say about the allegations against them.
A representative from DSP explained to Edaily through a phone interview today that they paid each members of Kara around 300 million Won per person ($300,000) last year, more than half of which has already been paid during the first half of the year. When questioned why the members were only paid $3,000 this past December, the representative explained that it was based from a promotion with a franchise of a convenience store during August. DSP received 3 million Yen ($40,000) from the deal, and the Kara members each received $3,000 from this according to the representative. So some maybe curious on why they were only paid a share of this promotion and not their album and single sales? The representative explained this as well.
He went on to claim that Kara was offered a share of profit that was much higher than the going rate in the Japanese music industry. Japanese artists usually receive only 1% of the total album and single sales, and because DSP believed that this amount was unfair for Kara, they offered to pay the members around 20-30% of DSP’s share in the sales. In Japan, the distributor takes 86% of the album/single sales, leaving the management company with the remaining 16%. In DSP’s case, they had to split it evenly with Universal Japan, which is Kara’s management company in Japan. Hence, DSP was to receive 8% of the total album/single sales, and they would have had to pay only 1/8 of it to Kara members. However, the representative stated that they felt that the amount was unfair for Kara, so they had offered the parents of the members 20-30% of DSP’s share, which would be 1.6-2.4% of the total sales, rather than 1%.
Lastly, he stated that the Kara members were supposed to receive the third quarter profits in December, but this couldn’t be done so as the parents didn’t give an answer to their offer.
A lot of information from this interview are contradicting of other reports, mostly the ones that were written in favor of Kara. This interview does give one piece of information that is of value; the fact that dispute most likely started over profit distribution of album and single sales in Japan, and the members’ parents were heavily involved in this. Reminds us of another group of the past, doesn’t it?
Stay tuned to allkpop for more on this story as it develops.
Source: Edaily via Yahoo! Korea
And another article
DSP Media releases official statement, Goo Hara cancels contract terminationSource: allkpop
by VITALSIGN on January 19, 2011 at 4:08 am
After the four members of KARA previously announced that they filed to terminate their contracts with DSP Media, representatives of the agency have finally released an official statement on January 19th.
“DSP Media will be making an official statement regarding the contract terminations reported by Jung Nicole, Han Seungyeon, Kang Jiyoung, and Goo Hara of KARA. We received a one-sided declaration from their lawyers, Landmark, on January 18th, but Goo Hara has decided not to join the others in terminating her contract.
According to their claims, the 10-month hospitalization of CEO Lee Hoyeon caused the management to become inefficient in planning and promoting the group’s activities, but that is not the truth, as the CEO’s wife ran administration in place of the CEO. KARA’s explosive popularity with the Hallyu wave in Japan testifies to these efforts, further proving that the management did not mishandle their activities.
CEO Lee Hoyeon was not able to run the company himself beginning March of 2010, and KARA’s Japanese achievements were made five months later in August. DSP Media has done all they can in supporting and preparing KARA’s Japanese advancement.
Regarding the income distribution claims made by Nicole’s mother and their lawyers, the information they revealed was distorted and is a complete misunderstanding. Income was distributed in a manner that was most profitable to the KARA members, and unlike what they claimed, every employee was paid at the same time the moment profits were received.
They also claimed that DSP used its stature to force unwanted schedules and activities, but this is also a baseless claim. This is a claim that only defames the company employees who have worked their hardest to raise KARA as one of Korea’s top groups and leaders of the Hallyu wave.
And regarding speculations from another report about a competing agency attempting to persuade their parents and lawyers to terminate the girls’ contract with DSP, we ask that they stop such actions immediately. Should such requests be made repeatedly, we will make sure that they are met with legal consequences.
As the company that has poured their sweat and effort into creating who KARA is today, we hope that such issues are no longer exaggerated. Should there be issues between both parties, adjustments and reconciliation should be the appropriate step in continuing to promote themselves as a representative girl group of Korea.”
Regarding news of Hara staying with DSP Media, representatives continued, “Hara has decided not to comply with the terminations she submitted earlier today with the other members.” The possibility of further changes in the remaining three contracts is now at center stage.
As for their Japanese drama, “URAKARA” which is now facing an uncertain future, they stated, “They’ve already filmed four episodes before this so we have about three weeks of time left. We are looking forward to drawing a positive decision with the KARA members before then.”
Source: Newsen #1, #2 via Nate
KARA and Jumping