Kang Daniel’s Lawyer Refutes LM Entertainment’s Denial Of Signing Joint Business Contract

Mar 26, 2019

Kang Daniel’s legal representative refuted LM Entertainment’s claims that the agency did not breach contract terms by selling the management rights of Kang Daniel to third parties.

On March 21, Kang Daniel’s legal representative Yulchon LLC announced that the firm submitted an application to the Seoul Central District Court for an injunction against LM Entertainment for the suspension of the singer’s exclusive contract. The law firm also argued that LM Entertainment sold Kang Daniel’s exclusive contract rights to third parties without the singer’s consent.

In response, LM Entertainment denied Yulchon’s claims on March 26 and accused Kang Daniel’s side of making false claims. The agency further argued that despite their efforts, Kang Daniel’s legal representatives were wholly uncooperative in discussions.

The following is the official statement from Yulchon LLC:

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.

Source: Soompi