Fantagio States It Is Not Operating Illegally Following Dismissal of CEO
Fantagio has issued a statement amidst accusations that the company is running illegally after it dismissed its former co-CEO Na Byung Jun in December.
Chinese investment group JC Group’s Korean branch Gold Finance Korea became Fantagio’s largest shareholder in October of 2017. In December, JC Group dismissed Fantagio’s co-CEO Na Byung Jun, and former co-CEO Wei Jie of JC Group became the sole CEO of the agency.
There have been accusations that Fantagio is operating as an illegal business because the agency now lacks executives or board members that meet the requirements of the Act on the Development of the Public Culture and Arts Industry, and it continues to operate under Na Byung Jun’s name. The Korea Entertainment Management Association (KEMA) has sent four written notices to Fantagio about this so far.
On May 11, the CEO of Fantagio Music Woo Young Seung was also dismissed, and Wei Jie’s secretary has taken over his position.
It was confirmed on May 14 that several artists under Fantagio (including Kang Han Na) are currently seeking dispute mediation from KEMA in regards to their exclusive contracts. KEMA has stated that their contracts will be made invalid if it is recognized that Fantagio is operating illegally.
Fantagio has now issued a press release about the matter, in which they deny the accusations of illegal operations.
Read the full statement below:
“Hello, this is Fantagio. Firstly, we apologize for causing concern to everyone who cherishes Fantagio, Fantagio Music, and its artists.
“Due to the sudden resignation of the executive who meets the eligibility requirements under the Act on the Development of the Public Culture and Arts Industry, the company is currently in the process of electing a new executive who meets the eligibility requirements. For the development of the agency’s artists, we are trying to recruit an expert executive who possesses both professionalism and morals. As a listed company, a general meeting of stockholders must be summoned, which requires time, and up until now changes could not be made to the executive registration. We have been continuously consulting with the administration branch in the jurisdiction and relevant organizations. We recently received a statement about the results of an authoritative interpretation by the administration branch and legal experts. It states, ‘Fantagio was operating legally with the registration requirements specified by the Act on the Development of the Public Culture and Arts Industry. There was only a delay in the change of registration after the resignation of a director, and therefore it cannot be seen as an illegal business.’
“We inform you that in relation to this, we will continue to consult with the administration branch in the jurisdiction and relevant organizations, as well as the corporation Korea Entertainment Management Association (hereafter KEMA), and we will carry out the process of change of registration quickly in order to solve this problem.
“Separate from this, we recently found out through a media report that Kang Ha Na and three other artists from the agency had requested mediation related to their exclusive contracts. The mentioned artists currently have valid contractual relationships with Fantagio, and therefore we plan to amicably solve the problem with the artists through discussion, and will sincerely take part in arbitration by KEMA as well.
“Fantagio’s management values all artists and employees at Fantagio and Fantagio Music, and we will to try our best to stabilize the company. In addition, we will not spare anything in terms of active investment and support for the agency’s artists, and we will try our best in terms of the employees’ benefit plans. Finally, we promise that we will show a better image to everyone who cherishes Fantagio, Fantagio Music, and their artists. Thank you.”