KFTC New Rule: Critics Claim The Regulation Can Be Abused; How Badly Will It Affect K-Pop?
Recently, the Korean Fair Trade Commission or commonly known as KFTC has decided to make some alterations to its rules in accordance with trainee contracts. However, it is deemed to promote consequences that may affect the music industry.
According to Koreaboo, KFTC the said changes done in the trainee contracts were due to avoid unfair terms. Although it is intended for the good, several critics explained its possible consequences. In fact, one reporter even claimed that the new regulation may be abused.
The example situation presented goes like this: A trainee from MadeUp Entertainment will be sent to SM Entertainment's auditions as a regular person for undercover. They will then have the privilege to receive world-class training from the label using its fund. Once their training is complete, they will go back again to MadeUp Entertainment. (via Koreaboo)
Although the trainees have not received anything monetarily, they were still provided with fantastic training that can't be easily attained anywhere except with SM Entertainment's system.
The same thing can happen with large companies taking advantage of the smaller one.
"The new contractual changes of the KFTC will cause trouble for agencies. An agency could train a trainee to high standards and if that trainee leaves easily [due to the new regulations], a new trainee has to be trained, which is resource straining for the agency," an industry insider suggests. "If the trainees hold a grudge or are disappointed with their current agency, they can easily leave for another agency, and it would be difficult for the agency to fully control the situation for a compromise."
However, despite the backlash of some critics, SM Entertainment has already amended their contracts following the new rule. The other agencies as well have revised their agreements to follow KFTC's new regulation.
What do you think of this new rule for KFTC? Let us know your thoughts in the comment box below.
