Seungyeon, Hara, Jiyoung and Nicole, the 4 out of 5 members of KARA, previously released a statement regarding their decision to leave their management company, DSP Media. Since then, DSP has released an official statement about the issue in which they argued against some of the four members' points. Now that Goo Hara changed her mind to return to DSP, the remaining three members decided to press on with their offense and released another statement through Landmark, their legal representatives.
Below is the second statement released by Landmark;
The loss of faith in our company is what hurts us the most! The members of KARA and DSP Media began to lose trust in one another ever since the change in DSP's top management which occurred in March 2010. This is due to the fact that the members of the new management, who lacked professional knowledge, failed to provide proper management for KARA. The current executive director of DSP Media is the wife of Mr. Lee Ho Yeon, the ex-director who is currently ill. She has never worked in the entertainment management industry before; and so far, she has only been concerned about DSP's profits and the health of DSP. She failed to build a trusting relationship with the members of KARA as she disregarded situations and the growth potential of the members. The contract turned into a registration form! The members of KARA signed the contract for their work in Japan under the knowledge that it was a simple registration form. The members and the parents were told that the contract, which was in Japanese, was a form for simply registering as a music artist in Japan. This made them sign the contract without knowing that they were signing a contract, and when they asked for a copy of the contract after the fact, a DSP employee declined their request as the contract was not to be released outside of the company. The company had no rights to make deals in Japan! The executive director of DSP Japan, the company in charge of KARA's work in Japan, is the same person as the original DSP executive director (wife of Lee Ho Yeon). The company removed part of the earnings as a share of DSP Japan, and then paid the members with a percentage of the remaining portion. This means that the same manager, who owns both companies, cut KARA's share of the earnings through a transaction out of formality, which resulted in KARA getting taxed twice by the company. According to their contract with DSP, KARA members had their rights violated by this action. Karaya is owned by the executive director and his family! Karaya is an online clothing store for which three members of KARA (Gyuri, Hara and Jiyoung) work as models. It is owned by the current executive director of DSP Media, and other managerial positions are held by the director's family members, which clearly shows that this is another scheme to profit from the KARA members. Karaya also made the members wear clothing with the inappropriate line "BEST FUCKIN FIVE" on it then posted the photos on its website, which not only disregarded the reputation of the members, especially Jiyoung who is a minor, but also resulted in heavy complaints from KARA's fans. This action was a clear display of how DSP disregards the reputation or profit of the artists and is only concerned about the profits of itself.
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