The courts have ruled that DSP Media needs to pay for damages incurred to a clothing company due to KARA‘s loss of good image from their member contract disputes with the entertainment agency.
On May 21, it was ordered by the Seoul High Court that “DSP Media pay 50 million won to Real Company.” Fifty-million won is about 50 thousand dollars USD.
The judges of the case explained, “Before the dispute, KARA had a bright and friendly image but after negative reports of their conflicts came out, their good image fell sharply. This violated the endorsement requirement in the contract for the group to maintain a dignified image.”
However, the court also ruled that Real Company needs to pay DSP Media 50 million won in endorsement (modeling) fees since KARA fulfilled their duties before their conflicts arose.
In 2011, all members except Park Gyuri announced that they would be terminating their contract with DSP Entertainment and filed a lawsuit. While the conflict was later resolved with all five members remaining with the agency, Real Company, a clothing company that KARA was endorsing, filed a lawsuit against the entertainment agency, asking for compensation for damages incurred by the group’s loss of image.