March 21, Kang Daniel’s legal representatives, Yulchon LLC, released a statement saying that LM Entertainment “signed joint business contracts that sell Kang Daniel’s exclusive contract rights to third parties” and breached the terms of their contract.
LM Entertainment has denied the claims made by Kang Daniel’s side in full, saying that Kang Daniel’s side has made false claims and that despite their efforts, Kang Daniel’s representatives were wholly uncooperative in discussions, “changing representatives as well as their stance on issues several times.”
Below is the full statement from LM Entertainment’s legal rep:
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. Afterward, 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.