Singer and actor Park Yu-chun has been ordered to pay 500 million won for contract violation. The ruling comes after a prolonged legal dispute with his former management firm, Loud Fun Together. The Seoul High Court confirmed the decision on Saturday, siding with the agency. The court upheld a December 2023 verdict by a lower court. The 39-year-old entertainer, known for his past roles in boy bands TVXQ and JYJ, now faces major financial penalties.
In 2020, Loud Fun Together signed an exclusive deal with Re:Cielo, Park’s agency at the time. The agreement gave Loud Fun Together full management rights until 2024. However, in May 2021, Park raised complaints over unpaid earnings. After failed negotiations, Park and Re:Cielo warned they would cancel the contract. When Loud Fun Together did not respond, Park terminated the agreement himself. He then resumed work under a different management company, run by a personal acquaintance.
Despite a court injunction in August 2021 banning him from performing, Park continued overseas activities. These included concerts and advertisement deals. Loud Fun Together then filed a lawsuit, demanding 5 billion won in damages for contract violation. Both the district and appellate courts found Park and Re:Cielo responsible. Park’s legal team argued the contract was already void. However, the courts rejected that claim.
In a twist, Re:Cielo filed a countersuit against Loud Fun Together. They claimed the agency had failed to pay Park’s settlement shares. These included profits from merchandise, fan clubs, and international concerts. The court partially accepted this counterclaim. It ordered Loud Fun Together to pay 490 million won to Re:Cielo. Park has faced repeated controversies since 2019. That year, he received a suspended prison sentence for methamphetamine use.
Despite promising to retire, he later returned to the public eye. His tax issues and broken retirement promise have sparked public backlash in South Korea. However, Park has since shifted his career abroad. In Japan, he released a new EP titled Metro Love last month. He also made appearances on several music shows. His move indicates a focus on rebuilding his career overseas, avoiding domestic scrutiny.
The contract violation ruling may impact how Korean entertainment firms handle disputes with artists. Industry watchers say this case highlights the need for clearer contract terms and dispute resolution mechanisms. Legal experts believe this verdict could deter entertainers from unilateral contract termination. Agencies may also be more cautious with settlement transparency. Park Yu-chun has yet to make a public statement on the ruling.
