Chu (real name Kim Ji-woo, 25), a singer formerly of the group LOONA, won the appeal in the lawsuit she filed against her former agency to nullify her exclusive contract.
The Civil Division 7 of the Seoul High Court (Presiding Judges Kang Seung-joon, Kim Min-ah, Yang Seok-yong) ruled on the 8th in favor of Chu, confirming the nullity of the exclusive contract in the lawsuit she filed against her former agency Blockberry Creative, just as in the first trial.
The court stated, "The profit-sharing clause in the exclusive contract between the plaintiff and the defendant does not deduct costs first from the revenue generated by the plaintiff's entertainment activities before distributing profits, but rather distributes revenue first and then shares costs," adding, "This is very unreasonable for the plaintiff."
According to the exclusive contract, the revenue generated from Chu's activities is distributed between Chu and the agency at a 3:7 ratio, after which the incurred costs are settled at a 5:5 ratio. However, this structure effectively prevents Chu from receiving any profit unless the cost-to-revenue ratio falls below 60%.
The court pointed out, "From the plaintiff's (Chu's) perspective, she must engage in very active entertainment activities to actually receive profits, whereas the defendant may have less incentive to reduce costs."
Earlier, Chu filed the lawsuit in December 2021 after conflicts with the agency over profit settlements and other issues. The court referred the case to mediation in March last year, but it failed. During this process, Chu was expelled from the group and the agency in November 2022 due to alleged verbal abuse toward staff, but Chu denied the allegations at the time, stating, "I have never done anything to be ashamed of in front of my fans." Chu is currently signed with the agency ATRP and is active under an exclusive contract.
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