Blockberry Creative removed Chuu from the girl group Loona in November, citing violence and misuse of power. However, it looks like there's a much deeper conflict between the two that began with the artist's exclusive contract with the label.
Dispatch gives a much more detailed look into the issue between Chuu and Blockberry Creative. By the looks of it, their conflict is more than just what many thought it was.
Chuu's Exclusive Contract with BlockBerry
Dispatch reported, via Soompi, that the dispute between the two began with the "unreasonable contract terms."
It was in December 2017 when Chuu signed an exclusive contract with Blockberry. Under it, her entertainment activities earnings would be divided with a ratio of 7:3, with the biggest part going to the company. In contrast, her activity expenses would be split equally.
The firm also had a post-settlement system, where they would divide the earnings first and deduct the expenses after.
This meant that 20 percent of the expenses that Blackberry should pay were shouldered by the Loona members, resulting in the girls' building debt as their costs took about 70 percent of their revenue.
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Excluding Chuu, the other Loona members have reportedly earned 18.6 billion won or more than $14 million since 2016. So, each probably has 200 million won or approximately over $150,000 in debut, as they had to pay half of the expenses worth 16.9 billion won or $12.970 million.
Chuu Complained of 'Unreasonable Contract Terms'
With the unreasonable contract terms, Chuu applied for a provisional injunction to suspend her exclusive contract with Blockberry in January.
Fortunately, she won the case. She continues her activities, taking all the profits from her individual activities, only sharing the distribution of the group activities' revenue and the costs to the agency.
She signed an annex to their contract and changed the settlement to a 3:7 ratio. She also has the right not to participate in certain group activities and terminate the contract anytime she wants.
"My trust in the company pretty much ended last year. I didn't even want to participate in Queendom," Chuu told Dispatch. "But I did not want to give up LOONA either. I signed the annex to the contract in order to continue group activities."
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