JYP NEW CONTRACT AGREEMENT FOR THEIR KPOP IDOLS GROUP

Internationally, JYP has been quite successful in the American business and Japanese business. They earned a whole lot of money from other places. JYP has invested in too many sponsors, having a delay in significant growth.

South Korean group GOT7 have parted ways with JYP Entertainment after seven years. The group's contract with the label comes to an end on January 19th, 2021 and unfortunately all seven members have chosen not to renew. GOT7 is unofficially disbanded.

After that on January 27, it has been reported by Newspim that JYP Entertainment is expected to grow this year as they have changed their contract structure in order to favor the company. Just to know most of the trainee contract can be up to six years but the average trainee contract is 2-4 years.

Apparently, the change came because their previous contract structure consisted of 60% for the company and 40% for the artist for their domestic promotions. While 30% for the company and 70% for the artist for international promotions. JYP promotes his idols outside of Korea sometimes (example GOT7) instead of in Korea. Their fan bases need to stable enough for them to have a large enough market until they expand to other places. Because of JYP promoting out of Korea, groups are struggling to create comebacks or buying merchandise and albums for the reason that their groups are busy on television shows and not being productive.

As GOT7 became one of the most popular kpop groups internationally, their earnings became huge. The company had to pay accordingly (30% to the company/70% to the artist) for international promotions as stated in the contract.

Previously, JYP’s income distribution is quite even between the company and artists. An artist would get 50% of physical sales and renewed, they would get 40% of events and 50% of overseas promotions.

The average salary for an idol is 29.9 million won (26 520.10 USD), male idols earning 32.2 million won (28 560.11 USD) and female idols earning 27.4 million won (24 302.70 USD).

With this, fans are thinking that maybe that was the reason why the company didn't promote the group more as the members were receiving a bigger portion (+40%) of money than them.

Even one clip of J.Y. Park is resurfacing as he tells Jinyoung that he earns way more than him.