LM Entertainment has released a new statement.

On March 21, Kang Daniel and his legal representatives accused LM Entertainment of breaching the terms of their contract by signing a joint business contract with third parties without Kang Daniel’s consent and announced the submission of an injunction against the agency for the suspension of the exclusive contract.

Five days later, LM Entertainment responded to the injunction request made by Kang Daniel and denied the allegations made against the agency, arguing that Kang Daniel’s side made false claims.

On the same day, Kang Daniel refuted the arguments of LM Entertainment and provided detailed information on their argument.

The following is the full statement from LM Entertainment’s legal representative:

1. Hello. This is lawyer Kim Mun Hee from the law firm Jipyong, representing Kang Daniel’s agency LM Entertainment. We hereby deliver the following statements as LM Entertainment’s official response to the claims made by Kang Daniel regarding the joint business contract.

2. Kang Daniel and his representative are distorting the true nature of the joint business contract by purposely omitting the fact that LM Entertainment holds and can independently exercise all the rights of the exclusive contract [between the singer and the agency] and only extracting and revealing the parts that are favorable to them.

We only see this action being done with the purpose of provoking fans and forming public opinions that they can use as advantage, which will have unfair effects on the court’s decision. Moreover, the joint business contract Kang Daniel obtained was through illegal methods, and LM Entertainment will be taking legal action regarding this.

3. The joint business contract that has become the key point of the legal battle is an ordinary business contract that allows [LM Entertainment] to receive investment from third parties to carry out business of album production, concerts, and more. In exchange, the third parties are granted temporary rights such as album production and distribution rights and concert business rights. LM Entertainment still holds the rights of their artists without transferring them [to third parties].

Furthermore, the investment LM Entertainment received from MMO Entertainment was actually used for the entertainment activities of Kang Daniel and Yoon Ji Sung, another artist under the same label. All of this will be revealed through a trial at court.

4. Kang Daniel and his representative also argue that the legal battle started when the singer belatedly found out about the joint business contract and made requests to correct the situation, but this is not true. When Kang Daniel’s representative Mr. Seol first requested to make changes in the exclusive contract through a notice on February 1, 2019, Kang Daniel’s side was already aware of the joint business contract. However, they did not raise any question regarding the contract, and they continued to only negotiate to make changes in the exclusive contract.

[Kang Daniel] suddenly brought up the joint business contract through a notice via his lawyers on March 4, 2019, arguing that [LM Entertainment] did not pay [Kang Daniel] for signing [the exclusive contract]. This is a claim made only with the intention of terminating the exclusive contract.

LM Entertainment even expressed willingness to terminate the joint business contract [with MMO Entertainment] to Kang Daniel if Kang Daniel did not wish to work together with MMO Entertainment. However, different from what had been argued until now, Kang Daniel’s side demanded to terminate the exclusive contract and submitted an injunction [against LM Entertainment] for the suspension of the exclusive contract.

We deliver our regret to fans and the public for allowing the situation to come this far, and we will try our best to solve the conflicts in a timely manner.