Lee Seunggi Effectively Wins Another Settlement Lawsuit Against Former Agency... Ordered to Pay 690 Million Won

Court: "Definitive Language Stipulated in Contract"

Singer and actor Lee Seunggi has effectively won a lawsuit against his former agency, Hook Entertainment (now Chorokbaem Media), demanding distribution of music revenue that accrued after the termination of his exclusive contract.

Singer and actor Lee Seunggi. Photo by Yonhap News Agency

According to legal sources on September 5, the 20th Civil Division of the Seoul Central District Court, presided over by Chief Judge Kim Mincheol, ruled partially in favor of Lee Seunggi on August 29 in his lawsuit against Hook Entertainment for settlement payments and related claims. The court granted approximately 690 million won out of the roughly 830 million won claimed.

Lee Seunggi's side originally requested a 70% share of revenue until August 2024, which was the initial contract period, and a 50% share thereafter. However, the court recognized only 60% and 40%, respectively, considering industry practice that post-contract settlements are typically calculated at a lower rate than during the contract period.

In February, Lee Seunggi filed the lawsuit arguing that even after the termination of his exclusive contract in December 2022, Hook Entertainment continued to earn profits from music and albums and demanded the associated revenue be distributed. Hook Entertainment, meanwhile, argued that after the exclusive contract ended, it had no obligation to settle revenue unless a separate agreement was reached for any subsequent profits.

However, the exclusive contract contained a clause requiring settlement through separate negotiation if revenue occurred after the contract ended, and the court ruled in Lee Seunggi’s favor. The court found that the agency was still obligated to settle with Lee Seunggi, even if such a subsequent agreement was not formed.

Regarding Hook Entertainment’s position, the court pointed out, “If interpreted as the defendant suggests, the agency could breach its obligations, induce early contract termination, refuse to settle, and then acquire 100% of the profits generated by the plaintiff’s entertainment activities without any settlement. This would allow the breaching party to gain more benefits than if it had upheld the contract, which is a clear violation of the principles of good faith and fairness.”

The court also stated, “The contract uses the definitive expression ‘shall settle’ instead of a provisional one like ‘can settle,’ making it clear that settlement between the plaintiff and defendant must be carried out when revenue is generated.”

Furthermore, the court noted that the reason for the termination of the exclusive contract was attributable to Hook Entertainment. The agency had failed to settle music and album revenue with Lee Seunggi for nearly 20 years and did not provide him with relevant settlement data despite his repeated requests.

Previously, in November 2022, Lee Seunggi sent a formal notice to Hook Entertainment claiming that he had not been paid any royalties for his music since his debut. Afterwards, Hook Entertainment paid a self-calculated amount of about 5.4 billion won in settlement payments, and then filed a lawsuit seeking confirmation that no further debts were owed. Lee Seunggi also filed a counterclaim. He stated, “Through this case, I hope that junior artists who debut at a young age will not suffer similar disadvantages,” and pledged to donate all unaccounted settlement amounts received through litigation.

This content was produced with the assistance of AI translation services.