Korean Fair Trade Commission Finds SM Entertainment Guilty of Interfering With JYJ’s Korean Activities
Korean news program “Lee Sang Ho’s Palm News” has reported that the Korean Fair Trade Commission has found SM Entertainment guilty of interfering with JYJ‘s Korean activities for the past two years.
The report states that the investigation of the JYJ case is finished, but it must go through a review board in order to be officially published. However, the FTC has already ruled that SM Entertainment is indeed guilty, and according to Lee Sang Ho, this review is more of a political issue, and will not affect the ruling. According to Palm News, SM Entertainment will be fined for this offense. The FTC and SM Entertainment are currently negotiating the amount of said fine, which is rumored to be around 100 million Korean Won (~$87,000 USD).
The FTC apparently raided SM Entertainment in March and collected evidence to support the case, but this was not covered by major Korean press agencies. The report showed proof of interference with JYJ’s Korean activities, such as letters from the Korean Federation of Pop Culture and Art Industry (KFPCAI), and other officials.
This report was made by journalist Lee Sang Ho, who has been following this story for over a year. Included in the news report is an interview with Jung Hae Im, who was an instrumental figure in minimizing SM Entertainment’s thirteen-year contracts down to the current seven years.
In an interview with Korean media, Lee Tae Hwi, head of the FTC, has confirmed the investigations, and states that an official statement will be released once the case has been finalized.