February 15, 2011
SEOUL (AFP) - Three members of leading South Korean girl group KARA have filed a suit to break a contract with their management company, accusing it of taking an excessive share of earnings.
The trio claimed the company last year took most of the royalties from CD and DVD sales, as well as from songs performed in karaoke bars, by charging excessive costs.
Although the five-member group's album "Lupin" was a big hit in the first half of last year, they claimed they received just 860,000 won ($750) each after the company diverted 390 million won as costs from 410 million won earned in royalties.
DSP Media on Tuesday confirmed that Nicole Jung, Han Seung-Yeon and Kang Jiyoung had launched the action but dismissed their allegations as groundless.
The company said in a statement that it had been been making correct payments in accordance with the contract.
"As the legal battle is about to start, the trio should refrain from making unilateral allegations," it said.
It stressed it would do its best to have KARA meet all scheduled engagements.
DSP Media said it wanted to maintain relations with the group, which is especially popular in Japan where it won two awards last year for new artists.
