8:12 am - 03/26/2019

Kang Daniel's Request to Suspend His Contract With LM Entertainment to be Discussed at Court

Kang Daniel’s request for an injunction to suspend his exclusive contract will be the subject of questioning at court on April 5.

Previously, Kang Daniel applied for the suspension of his exclusive contract with LM Entertainment, but the agency denied the claims made by Kang Daniel’s legal representatives, Yulchon LCC.

On March 26, law firm Yulchon LCC revealed that the questioning will take place on April 5 at 2 p.m. KST at the Seoul Central District Court. The grounds for the injunction request are that LM Entertainment signed joint business contracts to transfer Kang Daniel’s exclusive rights to a third party without his consent.

Earlier in the day, LM Entertainment refuted Yulchon LCC’s claims through its legal firm Jipyeong saying, “Kang Daniel has sent a notice of termination that contains false information, and the agency has not handed over exclusive rights to a third party.”

In response, Yulchon LCC stated, “The key point of the injunction for the suspension of the contract is whether or not LM Entertainment transferred various rights under the exclusive contract with Kang Daniel to a third party without his consent and received compensation.”

Hello, this is lawyer Yeom Yong Pyo from the law firm Yulchon, who is carrying out legal affairs for singer Kang Daniel.

First, Kang Daniel has repeatedly wished to deliver his apology to fans who cherish him and the Korean public for the ongoing legal battle [with his agency].

In order to help the understanding of people who are interested in the case, Yulchon will tell the truth on behalf of Kang Daniel, with a focus on the application we filed to court requesting for the suspension of [the singer’s] exclusive contract [with LM Entertainment].

The key point of submitting the application to the court for an injunction [against LM Entertainment] for the suspension of [Kang Daniel’s] exclusive contract is whether or not [the agency] sold various rights written in the exclusive contract with Kang Daniel to a third party without Kang Daniel’s consent.

Kang Daniel signed an exclusive contract with LM Entertainment on February 2, 2018, a year before the contract went into effect on February 2, 2019. However, on January 28, 2019, which is before the exclusive contract went into effect, LM Entertainment signed a joint business contract that sells [Kang Daniel’s exclusive contract rights] including the content creation and management rights of Kang Daniel to a third party.

The context [of the joint business contract] mainly involves around the point that “during the five years of the exclusive contract, the core rights of the exclusive contract, including the rights to produce and distribute musical content, concert and international business rights, and negotiation rights regarding [Kang Daniel’s] activities in the entertainment industry, will be exclusively given to a third party.”

We were also able to confirm that in exchange [for selling the rights], LM Entertainment received a down payment from the third party that is triple the amount the agency paid Kang Daniel for signing the exclusive contract. However, Kang Daniel did not receive any explanation in advance regarding the signing and the context of the joint business contract nor did he give his consent.

Kang Daniel later found out that LM Entertainment, whom he trusted, signed a joint business contract with a third party without his consent, and the legal battle began when the singer requested the agency to make corrections regarding this.

In order to smoothly solve the conflicts, Kang Daniel made numerous requests to LM Entertainment for corrections of the illegal and unfair events that are stated above, but he failed to hear back a positive response and decided to appeal for the court’s decision.

Yulchon is expecting the truth of this case to be revealed clearly through questioning of the contract suspension, and Kang Daniel is currently expressing his desire for reasonable results to come out so that he can return to the arms of fans as quickly as possible.

1. Hello. This is lawyer Kim Mun Hee from the law firm Jipyong, representing Kang Daniel’s agency LM Entertainment.

I am relaying LM Entertainment’s official statement on the recent application for an injunction and subsequent suspension of his exclusive contract by Kang Daniel.

2. The exclusive contract between Kang Daniel and LM Entertainment is a standard exclusive contract provided by the Fair Trade Commission, and LM Entertainment has paid the signing bonus agreed to in the contract. Despite this, before his contract even went into effect, [Kang Daniel] sent us a notice through a representative vaguely saying that the contract was unfair, requesting that the contract be changed without giving us any specifics. Afterwards, we had four negotiation meetings with a CEO Won, who had declared himself a mediator, but we eventually received a notice from various lawyers with false truths, including a claim that [Kang Daniel] never received the signing bonus.

Moreover, this latest injunction from Kang Daniel’s side claims that LM Entertainment breached contract terms by signing over rights to a third party, but the contract in question is simply a contract in which LM Entertainment receives an investment from Kang Daniel’s old agency, MMO Entertainment, in order to best support Kang Daniel in his entertainment activities. LM Entertainment has never signed exclusive rights over to another party and holds all rights, including for album planning, fan meetings, concerts, and other performance contracts, merchandise businesses, casting, and management. LM Entertainment exclusively exercises these rights, with no participation from anyone.

3. LM Entertainment has refrained from taking any immediate action in the interest of reaching a mutual agreement, and has sat down several times with the various representatives of Kang Daniel in order to dispel misunderstandings and in a continued effort to reach a point of compromise. However, Kang Daniel’s side has changed representatives as well as their stance on issues several times, eventually ignoring what was discussed in our meetings and filing for an injunction and termination of his contract.

The situation is such that LM Entertainment has no choice but to carefully review the contents of the injunction request and to take legal action.

4. LM Entertainment had been preparing so that Kang Daniel would immediately be able to jump into solo promotions once his contract went into effect, and we regret having to relay this kind of news to Kang Daniel’s fans and to the public.

Though we have no choice but to move forward with the legal dispute, LM Entertainment will, with an open mind, continue its efforts towards regaining trust and reaching a compromise with Kang Daniel as well as working on getting Kang Daniel back to his activities as soon as possible. Thank you.

Source: Soompi 1 2 3, Naver 1 2 3

Omg messsssss, this is such dumpster fire.
goshipgurl 26th-Mar-2019 09:49 am (UTC)
Apparently he has also cut off contact with his friends (including wanna one) and moved out of his dorm. What the hell is going on with this guy?
dallinferno 26th-Mar-2019 10:11 am (UTC)
I read somewhere that he cut off contact with his celebrity friends (and changed his number) because of the whole on-going dispute? Here's the quote from Koreaboo (yes, I know ...) from an insider or someone:

"Kang Daniel has not concluded his dispute with his agency yet, and he did not want to create anymore rumors or have his own story misinterpreted, so naturally he has been unable to contact his friends. He is doing this because of the situation he is in.

It seems like it will be like this until his situation with his agency is resolved."
aures 26th-Mar-2019 11:08 am (UTC)
this is very understandable though because let's be real: you don't know who to trust and you don't know who will leak information
it's smarter to keep quiet and do your own thing with people you can TRULY trust
daynr 26th-Mar-2019 06:48 pm (UTC)
I mean, keep the contract stuff to yourself is really wise, but friends are for more than just that. He seemed pretty social, I wonder if isolating himself will make him happy.

But definitely keep everything related to this dispute quiet and probably stay a bit out of the public eye.
aures 27th-Mar-2019 08:03 am (UTC)
yes, but i can also imagine it's so "much" that he just can't bring himself to communicate, i can imagine it's a huge disappointment and worry, idk he must be feel extremely down and stressed out
i know when i feel like that i do not really want to talk to people, so i can just imagine for him it's also hard maybe
mortkero 26th-Mar-2019 08:39 pm (UTC)
This is really worrying!!

I sincerely hope he hasn't got someone by his side causing divisions for monetary gain. When people are worth money they can attract some awful hanger-ons.

Hoping the isolation news isn't true..
daynr 26th-Mar-2019 06:48 pm (UTC)
wow, that is intriguing....
hipployta 28th-Mar-2019 08:24 am (UTC)
One of the people in W1 and those group chats is signed to the sane agency so...
xoxkenzxox 26th-Mar-2019 02:00 pm (UTC)
question for those that know more about him: Will this whole legal battle have any impact on his career? He seems to be the most loved from Produce 101 S2/Wanna One.

Personally, I'm impartial as I didn't watch 101 more follow Wanna One's music super closely (only the occasional title song)
dallinferno 26th-Mar-2019 02:23 pm (UTC)
I was / am a huge Wanna One fan but even I'm not quite sure how this will impact him and his career ...

I think if he's done with this whole agency debacle asap and he releases SOMETHING sometime soon, he should be fine. He's without a doubt the most popular male idol in South Korea at the moment (a couple of my friends who have been following kpop for some years say he's sort of like the male Suzy, if that makes sense). I have no clue what'll happen if this drags on for ages though ... will the general public lose interest in him? Will the die-hard fans still be there for him? I don't know, but I do hope it turns out well for him ...
lil_poisonfrog 27th-Mar-2019 05:04 am (UTC)
It seems like the Korean court system doesn't drag things out quite as long as America so I think there's still hope
thatchicksaywha 26th-Mar-2019 04:10 pm (UTC)
ugh this really sucks. i hope he's doing alright
pourtant 26th-Mar-2019 05:18 pm (UTC)
imagine having the most popular male idol and all this massive potential in your hand and mishandling it to that extent... his company are greedy idiots and i hope he manages to get out
daynr 26th-Mar-2019 06:47 pm (UTC)
While that may be a clear and transparent money grab, it could also be totally legal based on the original contract. We need some Korean contract professors up in here to opine!

I wonder if Korea has an 'unconscionable' type of contract concept.
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