From AsianJunkie:
So basically the Federation Of Korean Music Performers (FKMP) collects a royalty fee, but they do not pay it out until the country that the idol in question is from signs an agreement with them. That essentially ends up making the earnings loss for foreign idols permanent if the countries cannot come to an agreement. Thus, this is not on Cube Entertainment at all as it’s an industry problem, and Lisa of BLACKPINK, BamBam of GOT7, and other foreign idols (like Elkie) also deal with the same thing.
MAJOR MUSIC DISTRIBUTORS OWE OVER 17 BILLION WON IN ROYALTIES TO PRODUCERS AND ARTISTS


It has been discovered that four of Korea’s major digital music distributors owe a total of over 17.4 billion won (approximately $15.4 million) in royalties to copyright holders.
Cho Seung Rae of the Education, Culture, Sports and Tourism Committee in Korea’s National Assembly recently made an announcement after examining documents from an inspection conducted by the Ministry of Culture, Sports and Tourism. He stated, “The unpaid royalties and neighboring rights royalties owed to music creators and performers by the ‘Big Four Digital Music Distributors’ amounts to 17.4 billion won during the period from 2014 to the first quarter of 2017.”
In this context, “royalties” refers to money paid to music copyright holders such as composers and lyric writers, while “neighboring rights royalties” refers to money paid to singers and musicians, etc.
The largest Korean music site Melon, run by Loen Entertainment, owes over half of this amount, with 9.7 billion won (approximately $8.6 million) overdue in royalties and neighboring rights royalties. Genie owes 3.4 billion won (approximately $3 million), Bugs owes 2.3 billion won (approximately $2 million), and Mnet owes 2.1 billion won (approximately $1.9 million). The amount owed to copyright holders has been increasing every year.
Cho Seung Rae stated that this issue of unpaid royalties has been brought up continuously in the past, but that the government hasn’t been able to prepare countermeasures and that the companies have not put effort into solving the problem.
Melon has stated in response, “Digital music service companies are working with the government and copyright holders to find a solution.”
The company added that one of the ways they have been trying to reduce the occurrence of unpaid royalties is maintaining a database of information about copyright in partnership with associations such as the Korean Society of Composers, Authors, and Publishers; the Federation of Korean Music Performers; and the Recording Industry Association of Korea. They stated that they have also been taking part in discussions with the ministry for the improvement of laws and systems for the past few years.
source: 151092, asianjunkie, naver + news1 via soompi
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Date: 2017-10-14 05:02 pm (UTC)But holy shit. that's worst clause.
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Date: 2017-10-14 06:53 pm (UTC)I'd imagine they don't know/care about it. She mentioned she receives A royalties, but not B, C, or D. So, foreign producers are probably only shown A and told "this is what you'll get for the song." Sorn probably wouldn't have figured it out if she didn't have Korean members to compare her income to.
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Date: 2017-10-14 05:11 pm (UTC)no subject
Date: 2017-10-14 05:19 pm (UTC)no subject
Date: 2017-10-14 05:14 pm (UTC)but this legal issue and the way companies apparently handle it really shed some extra light on some of the messier exits of foreign members from kpop groups, not to mention the way companies seek out foreigners for international cred.
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Date: 2017-10-14 05:43 pm (UTC)Seems like the more logical path to protect their investments (kpop groups / foreign members) and prevent infighting but... apparently YG told Lisa to "not get jealous" about income inequality bc that's the way the law is, when she signed her contract?? Weird
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Date: 2017-10-14 06:58 pm (UTC)no subject
Date: 2017-10-16 12:59 am (UTC)no subject
Date: 2017-10-14 05:59 pm (UTC)no subject
Date: 2017-10-14 06:35 pm (UTC)i'm really surprised by the way sorn talks about cube btw and surprised about cube for actually taking care of their artists (i mean i hear so often how bad cube is and i personally dislike the way 4minute ended but based on this and her previous livestreams, cube doesn't sound like the baddest of them all....yg tho...basically telling lisa to take it, less money or leave, that's how it sounds to me)
i'm mad this info doesn't go viral but not surprised with the way korea is :( hopefully sorn speaking up in public will make other foreigners also take action if possible
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Date: 2017-10-14 06:42 pm (UTC)Echoing the comments re Cube, it seems that welfare and freedom wise they treat their artistes relatively well, with much free reign and how Sorn is able to continue vlogging too, even though their business decisions aren't always the best.
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Date: 2017-10-17 09:16 am (UTC)i am so proud of Sorn and happy that she shared this. somehow, this explains why some foreign members left their group. im pretty sure its not the only reason but possibly one that has a big effect.
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Date: 2017-10-14 06:52 pm (UTC)no subject
Date: 2017-10-14 06:55 pm (UTC)no subject
Date: 2017-10-15 08:49 pm (UTC)no subject
Date: 2017-10-14 07:02 pm (UTC)Hopefully this will get some traction and the law will change, but I'm doubtful. Sorn is not the idol with the biggest following.
I wonder which countries have an agreement vs which doesn't. Unfair pay comes up in discussion about idols from China more often, and Thailand/Hong Kong in this case, but not so much with the US... What about other South-Asian countries? Somehow I doubt SK has agreement with them.
I can't imagine how much they could be owning to Nickhun :o
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Date: 2017-10-14 07:08 pm (UTC)no subject
Date: 2017-10-15 05:25 am (UTC)no subject
Date: 2017-10-14 07:09 pm (UTC)Because idols are so young an eager to debut, they probably are willing to accept less (like Lisa) and the system seems just fine with that. It seems odd that certain royalties are guaranteed and others aren't...and that it differs by country. I like how committed she is to figuring out the problem and trying to solve it. Plus, she was looking out for other foreign members too. You go, Sorn!
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Date: 2017-10-14 07:30 pm (UTC)If the disparity is due to international agreements, then it isn't all South Korea's fault, just that the law hasn't caught up with changes in the industry. However the attitude of the companies leaves something to be desired.
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Date: 2017-10-14 08:07 pm (UTC)It's wonderful that Cube set up bank accounts for each member to "directly" (I use this term loosely because i am sure there are pre-agency processing procedures happening before it ends up in member accounts anyway).
But how DIRTY could the agency be to not even discuss this kind of information with the artist during contract signing. I call absolute bullshit on the agency for "researching per Sorn's request" on why her royalty fees were not depositing on time/in the same amount as her korean native counterparts. I am sure income and financial details are discussed rigorously before these contracts are signed. Even if it's out of the agency's hands, why does it appear as if there was no prior discussion regarding this? How many foreign idols have to find out the hard way like Sorn did about the true nature of their income?
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Date: 2017-10-14 08:20 pm (UTC)I also wonder why this system is a thing? I don't think the US has this type of system? I wonder why SK's system is set up so that foreign countries must sign an agreement for their artists to receive full compensation for their work? I wonder if the current system is even necessary any more. It would be interesting if a Korean lawyer or a reporter would do an investigative piece on this. Why was the system set up like this initially and why does it continue like this?
I think it's great that Sorn is speaking out about it and that she feels she has the support of her company, Cube. I know she said Lisa was accepting of it, but she didn't recount BamBam's position on it. I'm sure he isn't thrilled and just grudgingly accepted it. I wish I could do something, call someone to push for change on this, but unfortunately, I don't think anyone would listen to me since I'm not a part of the countries that are part of this dispute. (Unless America is? But somehow I think we're getting our money.) It would be interesting to ask the girl from Rania and other Americans who are no longer working in Korea.
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Date: 2017-10-15 02:55 am (UTC)no subject
Date: 2017-10-15 12:51 pm (UTC)and yeah, it's totally unfair, with how global kpop is, that sk has this kind of system.
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Date: 2017-10-15 02:08 pm (UTC)no subject
Date: 2017-10-16 06:14 pm (UTC)