Kang Daniel is battling a legal dispute against his current label, LM Entertainment.
When the rumors spread online about Seungri being involved in Kang Daniel’s case, Kang Daniel immediately released an official statement stating that rumors are not true.
Initially, Kang Daniel revealed that the reason why he wants some changes on his contract is because Kang Daniel requested to have an official Instagram account to reach out to his fans but LM Entertainment didn’t agree.
Kang Daniel also added, “The truth will be revealed soon.”
Now, Kang Daniel’s case is becoming more complicated and bigger as Kang Daniel’s lawyer dropped accusations against LM Entertainment and LM Entertainment continues to deny Kang Daniel’s allegations.
Hello, this is lawyer Yeom Yong Pyo from the law firm Yulchon, who is carrying out legal affairs for singer Kang Daniel.
First, Kang Daniel has repeatedly wished to deliver his apology to fans who cherish him and the Korean public for the ongoing legal battle [with his agency].In order to help the understanding of people who are interested in the case, Yulchon will tell the truth on behalf of Kang Daniel, with a focus on the application we filed to court requesting for the suspension of [the singer’s] exclusive contract [with LM Entertainment].
The key point of submitting the application to the court for an injunction [against LM Entertainment] for the suspension of [Kang Daniel’s] exclusive contract is whether or not [the agency] sold various rights written in the exclusive contract with Kang Daniel to a third party without Kang Daniel’s consent.
Kang Daniel signed an exclusive contract with LM Entertainment on February 2, 2018, a year before the contract went into effect on February 2, 2019. However, on January 28, 2019, which is before the exclusive contract went into effect, LM Entertainment signed a joint business contract that sells [Kang Daniel’s exclusive contract rights] including the content creation and management rights of Kang Daniel to a third party.
The context [of the joint business contract] mainly involves around the point that “during the five years of the exclusive contract, the core rights of the exclusive contract, including the rights to produce and distribute musical content, concert and international business rights, and negotiation rights regarding [Kang Daniel’s] activities in the entertainment industry, will be exclusively given to a third party.”
We were also able to confirm that in exchange [for selling the rights], LM Entertainment received a down payment from the third party that is triple the amount the agency paid Kang Daniel for signing the exclusive contract. However, Kang Daniel did not receive any explanation in advance regarding the signing and the context of the joint business contract nor did he give his consent.
Kang Daniel later found out that LM Entertainment, whom he trusted, signed a joint business contract with a third party without his consent, and the legal battle began when the singer requested the agency to make corrections regarding this.
In order to smoothly solve the conflicts, Kang Daniel made numerous requests to LM Entertainment for corrections of the illegal and unfair events that are stated above, but he failed to hear back a positive response and decided to appeal for the court’s decision.
Yulchon is expecting the truth of this case to be revealed clearly through questioning of the contract suspension, and Kang Daniel is currently expressing his desire for reasonable results to come out so that he can return to the arms of fans as quickly as possible.”
LM Entertainment also dropped accusations against Kang Daniel, “Kang Daniel’s side has purposely omitted the fact that in the joint business contract in question, LM Entertainment still solely holds all rights to his individual exclusive contract, and used only exerts from this contract to tell a more favorable story on their part, distorting the facts.”
“We can only see this as a ploy to buy the sympathy of fans and the press, in order to influence the court’s decision unfairly. Furthermore, the joint business contract which Kang Daniel’s side made public previously was obtained on their end illegally, and LM Entertainment plans on taking legal action regarding this violation.”
LM Entertainment also responded regarding the joint agreement issue that Kang Daniel’s team mentioned:
“It was a regular business contract meant to allow a third party the regulation of music distribution, copyrights, and performances as an investor for a specific period of time; LM Entertainment still holds all rights to control the actions of our label artists and never gave away such rights. In addition, the investment funds that LM Entertainment received from MMO Entertainment through this joint business contract was actually used for our other label artist Yoon Ji Sung‘s entertainment promotions. All of this will be revealed through the court trial.”
LM Entertainment added, “We have continuously delivered our intentions to call off the joint business contract with MMO Entertainment if Kang Daniel truly disfavored it. However, Kang Daniel has only responded with a legal suit asking for the nullification of his exclusive contract, contrary to his earlier claims [of wishing to come to an agreement].”