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FTC Raids Top Entertainment Firms on Suspicions of Subcontracting Act Violation

Written: 2023-07-04 16:24:56Updated: 2023-07-04 18:46:36

FTC Raids Top Entertainment Firms on Suspicions of Subcontracting Act Violation

Photo : YONHAP News

The Fair Trade Commission(FTC) launched an investigation on Tuesday on large entertainment companies on suspicion of violating the Subcontracting Act. 

The commission sent investigators to Hybe Corporation, SM Entertainment and YG Entertainment to determine whether the firms placed orders for the production of albums or merchandise for fans without properly drawing up contracts with companies that they outsourced. 

Investigators will also look into whether the entertainment businesses failed to properly pay costs for such production efforts or forced the companies to include unfair clauses in their contracts. 

Investigators will not review whether any unfair contracts were clinched between entertainment agencies and celebrities.

The latest probe comes as the FTC unveiled plans to inspect unfair subcontracting practices in software and content industries this year.

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