Gu Hara, one of the four girls of five-member girl group KARA who had decided to terminate their exclusive contract with agency DSP Media, has reversed her stance and chosen to remain with the agency.
Just early on Wednesday, Gu, along with members Han Seung-yeon, Kang Ji-young and Nicole, had announced through their legal representative that they will split from DSP for various reasons including the agency abusing its authority to force the girls to carry out unwanted activities, insulting them and signing contracts without discussion nor consent from them.
Later in the day however, DSP issued a statement saying Gu has "decided not to agree to the contract termination" without explaining further.
Separately, a source close to the girls told Asia Economic Daily that Gu had not been aware of the exact details to the fours' announcement but judged she would stay once she acknowledged the terms.
Meanwhile, DSP's statement went onto refute the reasons the now three members gave in their notification yesterday for leaving the agency.
"The notification said the group was poorly managed as was their activities with CEO Lee being bedridden for ten months but his wife has been managing the agency on his behalf and KARA's popularity in Japan and throughout Asia proves this is not true," DSP asserted.
DPS's argument also revealed money was on the agenda, explaining that there is "much misrepresentation and misunderstanding (as claimed by Nicole's mother and her representative) regarding the ratio and time that profits were shared."
"We rather handed out the profits by calculating the gains and costs incurred in a way that would be advantageous for KARA... to each person as soon as we received the payments," the agency insisted.
"We at DSP Media, as the ones who have worked with KARA to bring them where they are today, hope this unsavory problem does not get any bigger and if there are problems between the two parties, that it will be solved amicably through mediation and reconciliation so that they may continue their activities as Korea's top girl group," ended the statement.
Fans and the entertainment industry are questioning the future of the girl group since Gu is not joining the girls in their move and member Park Gyu-lee has yet to reveal her position.
KARA has been one of the most popular girl groups in Korea since making their debut with their first album "Blooming" in 2007. They have released several singles and albums containing their hits "Pretty Girl," "Wanna" and "Lupin."
The quintet then expanded their career to Japan in August last year after signing with Universal Music Sigma, a branch of Universal Music group, which too has been a success.
They were named best new artist of the year at the 25th annual Japan Gold Disc Award, have placed at No. 1 on the Oricon chart's listing for the most successful new artist of 2010, and Oricon also named them the most promising artist of 2011.
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