Now, I'm not going to pretend to know anything about Korean law, but it looks like the Korean government is taking some action towards their entertainment industry - specifically how they deal with their artists.
As of this week, all entertainment agencies have to get a license to be legally recognized by the government and once they hold the license they have some responsibilities that they will actually be held accountable for.
1. The maximum contract length for any artist is 7 years, not the insane 13 year contract that the boys from TVXQ signed, for example.
2. If an artist terminates their contract (take Kris or Luhan for example) the company can't change their original contract and demand a ton of money as repayment from the artist.
But for some reason, SM, JYP, and YG have yet to have submitted their company.
According to Kang Min-ju, a lawyer at Hankug Law Firm, "If the three major agencies are not registered by next month, they will be considered as an illegitimate business. Other entertainment agencies or record labels such as Cube Entertainment, KeyEast and FNC have completed their registration."
I'm not really sure what will happen if they are considered illegitimate but I have a feeling it isn't good. Then again, all three of those companies have money tied up EVERYWHERE in Korea so the government can't really touch them.
Again, I don't know all the details but I think the two point about contracts that they stressed are a good idea! So we don't have more EXO, Block B, BAP, Kara, and TVXQ fiascos.
Read the full article here.