Kpop WTF: More Info On Block B vs. Stardom Entertainment

New info about Block B's injunction against Stardom Entertainment continued to surface throughout the day, with both parties releasing statements and fans and netizens alike rallying to Block B's defense.  Read on for Stardom and Block B's statements and more.

After the news about Block B's injunction exploded onto the Kpop world last night, Stardom released the following statement:

Stardom’s Official Position About Block B’s Filing for an Injunction

Hello, this is Stardom.
We are sorry to be greeting you at the beginning of the new year of the serpent with a not good thing. Because there are parts wrong in the contents of the incomplete report, we will explain those.
- On unsettled payment of earningsThe profit earnings of the artists Block B, who belong to our Stardom Entertainment, have all been calculated and paid. In relation to the calculations, all earnings have been fulfilled without missing a payment.
The exclusive contract states that in the case when a profit occurs, the payments would be calculated every month on the 25th. However, after debut, from April 2011 to October of the same year for six months, there was not one occurrence of profit, and due to that process we were unable to calculate the payments every month.
In regards to the account balancing cycle, as known at the time of the contract, it was decided to proceed monthly. However we would like to clearly disclose that in March 2012, we visited the members’ parents and with approval, the account balancing cycle was changed from every 1 month to every 3 months.
- The swindling of money and valuables from the members’ parents by agency CEO Mr. Lee under the pretext of promotion and other fees
It is true that Mr. Lee who was initially employed as a manager, forged qualification of a ‘CEO’ and made a counterfeit nameplate and other things, and swindled part of the members’ parents.
Mr. Lee tricked both the company and the members’ parents. He met the parents on his own accord and extorted money and goods from company funds and the parents. At present, his whereabouts are unknown.
The company found out about this truth too late, but at the time, in the case that the victimized parents turned to the company for this incident, it could cause damage to Block B, so we reached a decision to postpone legal proceedings.
On the account of those victimized, Mr. Lee has been criminally charged and put on the wanted list. We, Stardom, hope that Mr. Lee will be apprehended as soon as possible.
The person who assisted in Mr. Lee’s crimes at the time, after resigning from the company, is currently supervising Block B, blaming the company for his own actions on the things he started. We are planning to immediately take legal action about this matter.
- The reality of the dissatisfaction about the small amount of broadcastingAfter Block B’s comeback on February 2012 and Stardom completed hard work in preparations, in the middle of an active domestic promotion, we had to go through an absence period of about 8 months due to the incident that occurred during an interview in Thailand. After that period, the Block B members came to have dissatisfactions about the company for not being able to smoothly go on broadcast.
Stardom also came across hardships during the above mentioned time. We devotedly worked hard in our efforts so that Block B would be able to promote again, and in the end of it we were able to make it so that they could continue on broadcasts again.
- On the existence of someone pulling the stringsDespite the agency working hard in distributing the profit to provide even a bit better of an earning to our singers in, we confirmed that there is someone working behind the scenes, instigating and encouraging the members in this recent state of an injunction filed to cancel the exclusive contract. We cannot help but lament at this.
That person used the balance accounting issue to intentionally block easy communication between the Block B members or families and encouraged distrust about Stardom. And they blamed the company for all the wrong-doings they did while working inside of Stardom. We were able to figure out the whole truth while recently conversing with the members’ families.
- On the measures we will take from here
In order to hold a discussion with the Block B members, Stardom sent an official document at the end of the year, and while preparing for a meeting this afternoon, we found out through articles on the Internet that the Block B members filed an injunction for revocation against the company. Regardless, Stardom promises to do all that we can to resolve the misunderstandings and aim for a happy resolution with Block B who are still artists with us at this time.
We will work to be able to greet you with better news.Thank you.

cr. BB-CLUB
Translated by: youngha @ BLOCKBINTL


Not to be outdone, Block B and their attorneys then released their own statement:

There were many incidences when we could not trust the agency”
(Repetition of the statement reported by Newsen journalist omitted)
This is the full text of 7-member Block B’s official position stated by their attorney from the representing law firm.
Our law firm, as the attorney for the 7-member idol group Block B, has filed an injunction against Stardom Entertainment on 2013. 1. 3 at the Seoul Central District Court for the effective suspension of [Block B’s] exclusive contract. Due to Stardom Entertainment bringing attention to content which is different from the truth through a press release on 2013. 1. 4, we are distributing a press release that contains the official position of the 7 members of Block B. Therefore, we request for cooperation in not reporting without filtering for content that differs from the truth.
This is the official position of the 7 members of Block B regarding Stardom Entertainment’s (hereinafter called Stardom) press release on 2013. 1. 4.
First, we would like to say that we are greatly sorry for giving the many fans who love and cherish Block B a reason to worry starting from the new year.
The Block B members agonized for a very long time over canceling their exclusive contract and filing for injunction. However, ever since the signing of the exclusive contract and even to now, there have been numerous incidents that have made it so that Stardom can no longer be trusted. Therefore, we would like to inform that [Block B] has inevitably come to a decision like this.
Stardom asserted that all profits have been calculated and that a mutual agreement was made about the calculation cycle. However, this is different from the truth, and the real truth will all be revealed in court.
On Stardom’s explanation regarding the previous CEO Mr. Lee, because this started with Stardom clearly and implicitly giving him the approval to use the title and act as the CEO, it is different from the truth and is not enough to simply avoid responsibility.
Above this, in actuality, Stardom’s claim of the dissatisfaction about the amount of broadcasts, or that someone behind-the-scenes is the cause for the cancelling of the exclusive contract, is absolutely different from the truth. It is nothing but an attempt to disparage the members’ inevitable choice which was followed by much consideration.
We respectfully request for [you] to be careful of anymore statements coming from Stardom with the intent to mislead the press and public opinion.
Once again we convey [Block B’s] apologies for giving the fans a reason to worry. The Block B members promise to repay the fans’ love with more matured image from now on. 

2013 January 4

Attorney for the 7 members of Block B

cr. NEWSEN

Translated By: Youngha@ BLOCKBINTL


It goes without saying that I'd believe the group over their shitty ass management.

What's really awful is that throughout the year, the boys have alluded to not having any money, even going back to their controversial Thailand interview.  Sadly, everyone, including me, thought they were just being their usual silly selves.  Goes to show you that you never know what's really happening behind closed doors.

Of course, Block B fans (BBCs) everywhere took to social media and Kpop websites to proclaim their support but it seems that, surprisingly, netizens also jumped on the bandwagon.  

Netizen comments on article Block B "The CEO took $70,000 and disappeared"

2. [+475, -49] That CEO is an absolute ba$tard. I can see why the group is mad seeing as how they've never even been paid and now their parents have been ripped off. This company is really sh1t if the members had to pay for their own promotions themselves. Block B's still a rookie and they've been going through so many ups and downs but this is a lot of experience for them.

3. [+344, -13] $70,000 is such a large amount of money, I wonder if he can even live with a conscience stealing that kind of money from a minors' parents tsk tsk
4. [+121, -12] Since their debut, they haven't received any money. The rent for their rehearsal studio and dorm, meal plans, and stylists were paid for with all of the members' money. Everyone already knows that P.O. had to pay $800 in cash for the members' outfit fees. As if that wasn't enough, the CEO took minor member P.O.'s parents' $70,000 saying they need production and promotion fees and basically disappeared with it. Whenever they went overseas, they never had a manager with them; they had to manage themselves. The money made from their fanclub inauguration was stolen by the company. After still not receiving anything for their Mambo comeback, the parents eventually stepped up with lawyers and filed a lawsuit.

cr. Herald News via Nate

I say it's a surprise because of all the hate Block B incurred after their previous controversies (1, 2, 3 and more).  One good thing that might come of all this is that maybe there will be more goodwill towards the group in Korea... One can only hope.

This last comment from the same article was particularly damning:

4. [+121, -12] Since their debut, they haven't received any money. The rent for their rehearsal studio and dorm, meal plans, and stylists were paid for with all of the members' money. Everyone already knows that P.O. had to pay $800 in cash for the members' outfit fees. As if that wasn't enough, the CEO took minor member P.O.'s parents' $70,000 saying they need production and promotion fees and basically disappeared with it. Whenever they went overseas, they never had a manager with them; they had to manage themselves. The money made from their fanclub inauguration was stolen by the company. After still not receiving anything for their Mambo comeback, the parents eventually stepped up with lawyers and filed a lawsuit.

That is just disgusting.  Apparently if it wasn't for P.O. and his parents being well off, Block B wouldn't even have gotten as far as they are today.

I'll reiterate what netizens are asking:  Where's all the money from their appearances, record sales and fan meetings, etc.?  Even though some of their songs were banned, their albums still sold.  Also, they did really well with their newest album Blockbuster and single "Nillili Mambo", so where's the cash for that?

As the saying goes, there's two sides to every story but I'm siding with Block B on this one.  Block B's journey will continue to be difficult for awhile but hopefully they will come out victorious.


What do you think of these developments in the story?


Source: netizenbuzz, seoulbeats, BonTheBlock, asianjunkie, allkpop 1, 2, Nate.