[Summary] "150 Billion Won Model Fee Demand Over 3 Years" vs "Baseless"… Youngtak, Contract Renewal Controversy

Yecheon Yangjo States "Annual Sales of 5 Billion Won... Youngtak Demanded 15 Billion Won Over 3 Years"
Youngtak's Side "Never Demanded 15 Billion Won"

Trot singer Youngtak. Photo by Yecheon Brewery.

[Asia Economy Reporter Heo Midam] Amid the failure to renew the contract with trot singer Youngtak as the model for 'Youngtak Makgeolli,' the makgeolli manufacturer stated that "unreasonable financial demands were the reason for the breakdown." In response, Youngtak's side denied the claim, saying, "This is not true."

Yecheon Brewery, which has been manufacturing and selling 'Youngtak Makgeolli,' released an official statement on the 22nd, saying, "We signed a one-year contract with Youngtak on April 1, 2020, setting a record for the highest model fee in the traditional liquor industry at the time," and added, "The model contract expired on June 14, 2021, and ultimately, the renewal was not reached."

Yecheon Brewery claimed, "Youngtak's side demanded an amount reaching 5 billion KRW for one year and 15 billion KRW for three years, separate from the model fee, including cash related to the trademark and company shares," and "They refused to negotiate the amount until the final deadline."

They continued, "We explained that Youngtak's demands were realistically impossible and finally offered 700 million KRW during negotiations in June," adding, "However, due to differences in the renewal negotiation amounts, the contract renewal ultimately failed on June 14 this year."

Yecheon Brewery stated that although the contract renewal with Youngtak failed, there is no issue with using the 'Youngtak Makgeolli' trademark. They conveyed the review opinion of Attorney Jung Younghoon from Barun Law Firm, saying, "Park Youngtak (Youngtak's real name) is neither the trademark owner nor the exclusive user of 'Youngtak,' nor the holder of the product mark 'Youngtak' protected under the Unfair Competition Prevention and Trade Secret Protection Act. Yecheon Brewery can lawfully continue to use the trademark 'Youngtak' that has been used on makgeolli."

Furthermore, they appealed, "Yecheon Brewery is merely a local small and medium-sized enterprise aiming to grow, with total sales of 5 billion KRW and net profit of 1 billion KRW in 2020," and added, "Many people unaware of the contract renewal situation are spreading misunderstandings that we are a malicious company exploiting and abandoning Youngtak, causing significant damage."

Finally, Yecheon Brewery emphasized, "For Yecheon Brewery and its nationwide dealerships, 'Youngtak Makgeolli' is the livelihood of hundreds of families," and urged, "Please do not misunderstand us who work honestly day by day with sweat and tears, and we repeatedly ask you to judge us by the taste and quality of 'Youngtak Makgeolli' with a clear mind."

Trot singer Youngtak. Photo by Youngtak Instagram screen capture.

As the controversy grew, Youngtak's side expressed regret, calling it "groundless." Milagro, Youngtak's agency, posted a statement titled 'Notice Regarding Yecheon Brewery Article' from their legal representative, Sejong Law Firm, on the official fan cafe that day.

Sejong stated, "Yecheon Brewery's claims are completely untrue, and there is no fact that Youngtak's side demanded 15 billion KRW from Yecheon Brewery."

They added, "Yecheon Brewery requested a usage consent letter from Youngtak's side in the second half of 2020, intending to apply for the 'Youngtak' trademark, but Youngtak politely declined," and explained, "Due to Yecheon Brewery's persistent requests, negotiations began in March this year, and around April, discussions proceeded in a form of receiving a certain contract deposit and royalties based on sales volume, but the amount was never 5 billion KRW or 15 billion KRW."

They also said, "On June 14, the deadline set by both parties for negotiations, Yecheon Brewery suddenly replaced their representative with a large law firm and sent a document titled 'Notice of Position on Licensing of the Youngtak Trademark' via email, which stated that Yecheon Brewery could use the trademark without Youngtak's consent," and added, "Youngtak's side was very surprised to receive such an email without prior notice from Yecheon Brewery."

They continued, "We were once again shocked by Yecheon Brewery's inconsistent behavior," and explained, "We sent a reply stating that Yecheon Brewery's claims are not valid and that we would terminate the negotiations, and the trademark-related negotiations have been completely concluded."

Regarding Yecheon Brewery's claim of having the right to use the 'Youngtak' trademark, they said, "Legally, this is not valid, and the right to use the 'Youngtak' mark belongs to Youngtak's side," adding, "If disputes continue, it is expected that the Korean Intellectual Property Office's judgment and ultimately the court's decision will confirm that Yecheon Brewery's claims are not valid."

Meanwhile, 'Youngtak Makgeolli' is a makgeolli launched by Yecheon Brewery last year. Fans claimed that the 'Youngtak Makgeolli' trademark was derived from the singer's name. When Youngtak participated in TV Chosun's 'Mr. Trot' and gained attention after singing 'A Glass of Makgeolli,' Yecheon Brewery applied for the 'Youngtak Makgeolli' trademark.

Regarding this, Yecheon Brewery stated, "Since 2019, we had named three trademarks: Jintak, Youngtak, and Hoeryongpo, and after much consideration, we applied for the 'Youngtak' trademark on January 28, 2020."

They also said in a press release on the 25th of last month, "Youngtak Makgeolli is named after Chairman Baek Gooyoung, and the initial trademark application was made in January 2020. It was officially launched in May 2020 when 'Mr. Trot' aired."