January 30, 2018: LM Entertainment Created
LM Entertainment was established January 30, 2018 by Gil Ingyu 길인규 as Gil MNE 길엠앤이 (name changed to LM on December 31, 2018) with 1 million won capital.[s] The company was not officially registered as an entertainment agency until more than a year later on February 7, 2019.
February 2, 2018: Daniel and Jisung Sign to LM
Kang Daniel and fellow Wanna One member Yoon Jisung signed an exclusive contract with LM Entertainment on February 2, 2018, a year before the contract went into effect on February 2, 2019.[soompi] This was a decision out of trust in staff from B2M (their agency as trainees) who would later work in LM. LM was still unregistered at the time the contracts were signed, violating Article 13, Clause 1 of the exclusive contract. As part of Wanna One, Daniel and Jisung were still signed to Swing until December 31, 2018 and MMO until February 2019.
January 2, 2019: Daniel Opens Instagram
@thisisdaniel_k broke the Guinness World Record for fastest 1M followers on Instagram (11 hours 36 minutes)
January 21, 2019: Fancafe Opening, First IG Live, Solo Debut Plans
On his first Insta live Daniel hinted to the fans, “I cannot go into detail about my upcoming plans, but see you in April.” With this statement, fans speculated that he may be making his solo debut then. Previously, it was reported that his solo debut will take place after Yoon Jisung’s. In response to the speculations, Kang Daniel’s agency MMO Entertainment confirmed, “Kang Daniel is preparing to make a solo debut with an aim to release music in April.”[s] [soompi]
January 24-27, 2019: Wanna One's Final Concerts
January 28, 2019: First Fancafe Post and LM Signing a Joint Business Contract
POST TITLE: My First Post[s]
Please take care of me ㅎㅎ
FAN POST TITLE: [Please Read] To: International Fans[s]
DANIEL REPLY: Too Sweet
FAN POST TITLE: ah ah I’m a Level 1 user, I can’t see it ㅜㅜ[s]
[CONTRACT] On March 26, the following was revealed by Daniel’s lawyer:[soompi]DANIEL REPLY: Please just wait a bit ㅠㅠ
Kang Daniel signed an exclusive contract with LM Entertainment on February 2, 2018, a year before the contract went into effect on February 2, 2019. However, on January 28, 2019, which is before the exclusive contract went into effect, LM Entertainment signed a joint business contract that sells [Kang Daniel’s exclusive contract rights] including the content creation and management rights of Kang Daniel to a third party.
(Note: An excerpt of the secret joint enterprise contract that Daniel’s side revealed can be found here.)
January 31, 2019: Moving to New Agency LM Entertainment
On January 31, LM Entertainment announced, “Kang Daniel and Yoon Jisung’s exclusive contracts with MMO Entertainment end on January 31. Starting on February 1, they will be moving to a new agency, LM Entertainment.” The agency went on, “The two artists ended up joining LM Entertainment on the foundation of deep trust, and we plan to decide on the direction of their future activities after careful discussion. We promise to do our utmost to support the [two] artists, who are preparing to make a fresh start.”[s] [soompi]
At 5:20 PM, UPI News [Reporter Kim Hyunmin 김현민] reported the transfer. There were suspicions among fans that the company itself had not changed, just the name. LM said that there is a business partnership with CJ ENM, but it is a separate entertainment company that is not affiliated with CJ ENM. According to MMO, it was a difficult decision to let the artists move for their own development.[s] [eng]
[FANCAFE] Fan club name suggestions were open until Feb 3 23:59 KST. Level up closed at 17:59 KST.February 1, 2019: Contract Dispute Starts (Reported Later in March)
You have to trust in me completely :)
Don’t care about other things
It will be fine.
Just trust me :)
February 7, 2019: LM Entertainment Finally Registered
The company was registered as LM in KOCCA on February 7, 2019 by Yang Jongseon (양종선), who is speculated to be LM CEO Gil Jonghwa’s wife and a manager from MMO Entertainment.
February 14, 2019: LM Issues Legal Action Against Malicious Comments
Read the official statement by LM Entertainment on Soompi.
LM opened applications for fancafe moderators. Application period: February 15, 2019 10:00 AM ~ February 21, 2019 9:59 AM
February 19, 2019: Fancafe Reply
FAN POST TITLE: Goodnight Love[s]
DANIEL REPLY: Have a sweet dream
February 20, 2019: Ninja Profile Pic
February 22, 2019: Coffee Friends Appearance and Fancafe Selfies
late night
February 25, 2019: New Profile Pic (Glasses Selfie)
February 27, 2019: Fancafe Song Recommendation
DANIEL REPLY: On a quiet night, Daft Punk- “Something About Us” is good ㅎㅎ
DANIEL POST: Annnnd Dpr live – “Text Me” it’s amazing track too :) I hope you guys have a good night.
FAN: Niel likes Daftpunk ㅎㅎ♡♡♡
DANIEL REPLY: I like them a lot ㅎㅎ
February 28, 2019: Stipulation of Contract Termination (Reported in March)
On March 5, the idol’s legal representative told Yonhap News, “We’re currently doing a legal review. We will do our best so that this has no effect on Kang Daniel’s promotions in the entertainment industry.”
This was said to Yonhap News during a discussion about how a certification of contents was sent to the agency that asks that changes be made to his contract. It was also reportedly hinted that there’s a possibility for a termination of his contract.
When asked if they’re considering the possibility that this may turn into a legal battle, the representative replied, “We’re in the middle of a legal review, so it’s difficult to respond to that.”[s] [soompi]
Starting from here, we will update the timeline from the start of the dispute between Kang Daniel and his company LM Entertainment, as reported by the media. Negative articles will mostly be hidden (+ Read Content). Original sources are included at the end of paragraphs, and the translations used are mainly from Soompi and Twitter user kdncafe.
Up until this point, the last time Daniel was seen in public was January 27, the last day of Wanna One’s concert. Daniel had no official schedules afterwards, and LM cancelled others. Following the fancafe level up period when 60k+ fans were rejected without any explanation, the fancafe was abandoned by staff, and antis were free to post without repercussions. Daniel was also restricted from regularly communicating with fans. It was then when news of the dispute first broke out.
What followed was an onslaught of one-sided news articles and negative media play. On March 19, Daniel filed an injunction against LM to suspend his contract. The court hearing regarding this was on April 24 at 3:30 PM (originally scheduled April 5 but was rescheduled after LM tried to transfer courts and delay). The main point was whether LM transferred Daniel’s exclusive contract rights without his consent to third parties. On May 10, the court ruled in favor of Daniel, and his contract with LM was suspended. Daniel received a full citation, meaning the judge sided with Daniel on every argument presented. Daniel’s lawyer said this was the first case that a joint business contract was discovered to be an unauthorized transfer of rights. Daniel is free to work without LM interfering. What remains is contract termination. Daniel’s team reportedly filed a contract termination lawsuit on March 21. After LM attempted to delay an objection court hearing by switching lawyers, LM’s objection to the decision was rejected July 11, marking the second time LM lost in court.
On September 27, it was reported that both sides ended their legal dispute and terminated the contract with CEMA as the mediator. The contract termination lawsuit and LM’s Seoul High Court appeal were withdrawn.
March 3, 2019 (5:50 PM): News of Dispute Breaks Out
Korean news outlets reported that Kang Daniel had asked to terminate his contract with his current agency LM Entertainment. In a call with news outlet SPOTV News, LM Entertainment stated, “It is true that we received a certification of contents, but it was a request to modify clauses in the contract, not to terminate it. We are currently discussing the modification of the contract’s clauses.”[soompi]
March 3, 2019 (7:16 PM): Sports Chosun Reports False Accusations
An hour after news of the dispute broke out, Sports Chosun [Reporter Baek Jieun 백지은] released a highly controversial article with claims that could potentially harm Daniel’s image (contents of the article hidden below). Immediately, fans noticed the article’s date of creation is February 21 and modified on March 3, raising suspicions of the validity of the information and questioning whether the article was planned beforehand.
Sports Seoul claimed that Daniel had met with a 40-year-old woman in Hong Kong introduced by Big Bang’s Seungri during Wanna One’s activities last year, supposedly to seek for investors.[s]
However, the woman was revealed to be an event organizer for Korean celebrities whom Daniel met with Wanna One through their agency when the group had their Hong Kong fan meeting in 2017.
(Note: It’s important to mention that currently idol Seungri is being investigated for his involvement in the Burning Sun controversy and will be treated as a suspect in further investigations. This controversy is growing into possibly one of the biggest corruption scandals in South Korea’s history, so any involvement with it could have serious repercussions. If you want to know more about this particular sensitive case, we recommend reading this Twitter thread.)
March 3, 2019 (10:37 PM): Daniel Issues His Own Statement Through His Fancafe
Daniel issued a statement in Korean and English in a fancafe post, denying false rumors and promising that he would open a personal Instagram account on March 4 at 12 PM.
My beloved fans, it’s Daniel
First, I would like to thank my fans who have been waiting for me for the past month, and I’m deeply sorry that you had to hear about me through negative news articles.
As it was abruptly reported today, I’m currently in dispute with LM Entertainment.
Because I wasn’t even able to show you how I was doing through my SNS, and did not want to worry you, I have been continually asking the management to transfer my SNS account to me so that I could at least convey any news to my fans.
I have been waiting for the management to voluntarily transfer the account to me, but the management refused to do it. And today an article was reported about the dispute between us.
During the time I first encountered the articles until now, many malicious speculation articles that were not true began to be reported, and although I was taken aback, aside from myself, I was more worried about my fans who would be hurt by things that are not true. This is why I have decided to end my wait and have gained courage to open a new account for my personal Instagram at 12PM tomorrow.
I have given a lot of thought to this decision, and I have to say that this is my sincere act that I have decided for myself and my fans.
I miss you so much.
I was able to pull through during this hard time entirely with our memories together and the love and support you have given me.
I will do my best to stand tall before you.
Please trust me and wait for me.
The truth will be known.
Love,
Daniel.K
March 4, 2019 (8:20 AM): Sports Seoul Warns on Fan Meetings Cancellation Fee
Prior to Kang Daniel creating his new Instagram account, Sports Seoul [Reporter Lee Jiseok 석기자] published an article about the consequences of cancelled fan meetings if the dispute doesn’t reach an agreement soon.
LM Entertainment had a schedule for Daniel’s solo project. However, as there’s a conflict between the two sides, it’s hard to say if the schedule will be followed. If the schedule for the Asia fan meetings will be delayed due to prolonged conflict between Daniel and his current company, the major issue is expected to be who will be responsible for damages to the local companies.
According to the officials, Kang Daniel was planning to release a solo album in late April and establish himself as a “global star” through Asia fan meetings in May. One of the officials said the plan to hold an Asia fan meeting tour is already in progress.
Kang Daniel, the most popular member of Wanna One, is meant to hold events in seven cities in six countries. If Kang and his current agency fail to reach an agreement and the dispute drags on for a long time, it will be a sensitive issue to decide who will be responsible for the cancellation of the Asia fan meetings.[s] [kdncafe]
March 4, 2019: Personal Instagram Opening, Fancafe Spammers, Second Certificate of Contents
Kang Daniel opened his personal Instagram account @daniel.k.here at 12 PM KST, uploading three photos with the caption, “Hello. It’s been so long.”
On the same day, suspicious accounts created recently started to spam both Daniel’s official fancafe and Twitter, requesting him to settle with LM Entertainment. Fans reacted by using similar images but with supportive messages. International fans started the Instagram support project “We Are Here, Daniel.”
On Twitter, fans started a daily hashtag project using #ForeverWithDaniel, #WeTrustDaniel and #BeYourselfDaniel. The first two hashtags trended worldwide in 1st and 4th place respectively on March 4.
Also, according to LM’s tip to a tabloid site in April, another certificate of contents was sent to LM on March 4, 2019 through Yulchon.
March 5, 2019: Kang Daniel’s Legal Rep Responds to Concerns
On March 5, the idol’s legal representative told Yonhap News, “We’re currently doing a legal review. We will do our best so that this has no effect on Kang Daniel’s promotions in the entertainment industry.” When asked if they’re considering the possibility that this may turn into a legal battle, the representative replied, “We’re in the middle of a legal review, so it’s difficult to respond to that.”
It’s reported by Yonhap News that Kang Daniel sent the certification of contents to his agency LM Entertainment on February 1. It is said to have included the stipulation that if the requested changes to his contract and negotiations did not happen by February 28, it would be considered that his contract has been terminated.[s] [soompi]
March 7, 2019 (8:09 AM): Sports Seoul Releases Article with KEPA and KMF
Sports Seoul [Reporter Lee Jiseok 석기자] released a questionable article with KEPA and KMF siding with LM Entertainment.
A senior official at Korea Entertainment Producer’s Association (KEPA) contacted LM offering the company assistance. KEPA will begin internal discussions if the company requests such. A Korea Management Federation (KMF) official said they will hold an executive meeting soon to discuss the situation. If both sides cannot agree, the probability of getting involved is 99%. Unlike the agency’s stance that it will do its best to reach an amicable statement, Kang Daniel said in his official fancafe that he was “in dispute.”
In the last paragraphs, the reporter mentions that since Daniel signed a contract, there’s no legal issue with that. If this incident leads to a big loss to the company, audition program participants will find fault in the original agency. Since Daniel is a good person someone around him must be making the wrong decisions.[s]
The full title of Sports Seoul’s article also became associated to Daniel’s name as the top related search term.
(Note: Full article titles do not become search terms because people don’t search for something they know or have already read about.)
After much backlash, the associations did not acknowledge the previously reported statements.
KEPA is under the jurisdiction of the Ministry of Culture, Sports, and Tourism and is composed of 408 companies of the entertainment industry that are specialized in music, performance, and management.[s] [soompi]
(Note: LM Entertainment is actually not part of this association but MMO is.)
The association released the following statement:
Hello. This is the Korea Entertainment Producer’s Association.
We are releasing an official statement as there are continuous reports regarding the conflict between LM Entertainment and Kang Daniel that contain room for misunderstanding.
The Korea Entertainment Producer’s Association follows the principle of not intervening hastily when an agency and artist are working on coming to an agreement.
If both parties officially request mediation, the association can provide assistance for peaceful settlement. However, in this current situation, the most that the association can do is to just watch for both parties to make a peaceful settlement.
The association has concern about this conflict leading to legal action, and if both parties officially request mediation, we will mediate so that an agreement can be made and will provide support so the agency and artist can continue activities.
Thank you.
March 7, 2019 (2:46 PM): Seon Jongmoon Appointed to Represent Kang Daniel
On March 7, it was revealed that Kang Daniel appointed lawyer Seon Jongmoon (Sun & Partners), who was a lawyer and legal representative for several legal disputes in the entertainment industry. Some of his clients were Kim Hyunjoong’s ex-girlfriend in her paternity dispute with the singer and MADTOWN in their conflict with their agency.
Lawyer Seon Jongmoon is currently communicating with LM Entertainment on Kang Daniel’s behalf, and on March 7 he told news outlet Xportsnews, “The discussion has not advanced since the day the certification of contents was sent. I have nothing else to tell you at this point.”[s] [soompi]
March 8, 2019 (4 PM): Kang Daniel's Lawyer Updates on Possible Lawsuit
March 8, 2019 (7 PM): SPOTV News False Reports on Fan Opinion Changing
On March 8, SPOTV News [Reporter Kang Hyojin 강효진] released an article and video through STARK, claiming that Kang Daniel fans have been divided and many request him to settle with his company.
The supportive comments on Kang Daniel’s newly made SNS account were sweet. If you check yourself and see the supportive comments, you can see what the public opinion is beforehand. However, contrary to what the news is saying for the past 7 days—that both sides are trying to reach an agreement—it seems that Kang’s side is more focused on the dispute with his company.
Fans who want an agreement are using the #KangDaniel_Settle hashtag on SNS. There have already been thousands of messages with that hashtag.[s] [kdncafe]
(Note: The video included screenshots of alleged Daniel “fans” on Twitter and the fancafe requesting him to settle.)
The article provoked much outrage among Kang Daniel fans who have been diligently showing their support for the idol since news of the dispute first broke out.
Twitter user prince__danik went a step further by making an interesting analysis of why fans were so angry. First, she pointed out how new fancafe members with a Level 2 status (Note: level up applications ended on January 31) spammed the cafe with settlement requests from March 4 until March 7-8. Some of them deleted all of their comments right after the fan opinion article was released. This raises the question whether the spamming was planned only to take screenshots for an article and make the public believe that Kang Daniel “fans” side with the company instead of him.
To further prove her point, the fan also shared Google graphs tracking the 3 hashtags for a week. The first hashtag is the #KangDaniel_Settle hashtag reported by SPOTV News, and the other two are the hashtags fans have been using since day one to show support.
Notice how the settlement hashtag was hardly used and only used in Korea.
You can check prince__danik’s full Twitter thread here.
March 11, 2019 (7 AM): MK News Negative Article
If the conflict intensifies, it is inevitable he’ll stop his activities. In this case, it is expected that Kang Daniel will suffer from the aftermath of the conflict. On that account, there are fans who give unconditional support to Kang, while there are a few who want him settle with his company.
Above all, it’s true Kang Daniel’s achievements before his solo debut have not been seen in the industry before. However, it’s a “promise” to follow the contract when one (signs) it. An official in the K-pop industry said, “If there is no legal problem in the contract with the current company, there is virtually no part that can benefit Kang Daniel in the conflict. No matter what situation he’s facing, it doesn’t seem good for him to prolong the dispute.”
It is unknown how this will end. Right now maybe Kang Daniel needs to be more cool-headed rather than passionate.[s] [kdncafe]
March 11, 2019 (9:15 PM): Lawyer Clarifies Daniel Didn't Meet Seungri Privately
On the March 11 broadcast of MBC’s Section TV, Kang Daniel’s lawyer appeared on the program to deliver updates on the singer and his dispute with his agency LM Entertainment.
During the show, lawyer Seon Jongmoon clarified Kang Daniel and Seungri’s relationship by saying, “It’s not true at all. [Kang Daniel] has not met Seungri privately, and he has never been to the club BS.” He continued, “There have been about two Wanna One concerts, and Seungri merely attended as a [senior artist]. We’re currently checking the contents of the rumors, and we will take legal actions after making necessary arrangements.”[s] [soompi]
This is in reference to the article posted on March 3, 2019 (7:16 PM): Sports Chosun Reports False Accusations.
March 12, 2019: Sports Seoul Reports Kang Daniel Is Not Included in KCON Lineups
On March 12, news outlet Sports Seoul reported that Kang Daniel has not been included in this year’s KCON lineups yet. KCON is CJ ENM’s global K-pop convention. Kang Daniel’s name was reportedly not found on any of the May through September lineups, although several other former members of Wanna One were included.
[Reporter Lee Jiseok 석기자] An industry source shared, “From CJ ENM’s position, there is no reason to exclude Kang Daniel from this event. His dispute with his agency must have affected the casting process. There is a high possibility that Kang Daniel will be included once the problem is resolved somehow. From Kang Daniel’s point of view as well, [KCON] is the optimal place for him to show his presence to global fans, so it will be a big loss for him if he doesn’t participate in it.”
Sports Seoul further reported that Kang Daniel and LM Entertainment had planned for a global fan meeting tour in May and that preparations had mostly been made already. If Kang Daniel’s conflict with LM ends up in court and the fan meetings don’t happen, a big issue will revolve around the compensation for damages to the agencies and local companies involved in the fan meeting preparations.[s] [soompi]
(Note: According to Kang Daniel fans who called KCON’s department in Korea, they were told nothing is confirmed for the KCON 2019 lineups yet. It’s also interesting to mention that this is the third article with a negative tone written by reporter Lee Jiseok from Sports Seoul.)
(Note: In addition, LM staff members were found to be Instagram friends with reporters writing negative articles. Some of those reporters were Lee Jiseok and Jeon Won. After fans found out, Lee Jiseok put his Instagram on private, and the LM co-director Noh Hyunjun deleted his account.[s] [s] Lee Jiseok also stopped writing negative articles after this until LM released their statement on March 26. The Sports Seoul reporter covered the news using the same photo of Daniel as in his previous articles. The LM CEO Gil Jonghwa was also found to be Instagram friends with Lee Jiseok.[s])
March 12, 2019: eDaily News Negative Article
eDaily News [Reporter Kim Eunkoo 김은구] published a negative article repeating the same false accusations reported by Sports Seoul on March 3.[s]
March 14, 2019: Kang Daniel Appoints Law Firm for Dispute Against His Company
On March 14, SBS funE [Reporter Kang Kyungyoon 강경윤] exclusively reported that Kang Daniel has chosen experienced law firm Yulchon as his legal representative.
The report stated that Kang Daniel requested law firm Yulchon to represent him in the legal battle against his agency, LM Entertainment. Lawyer Yeom Yongpyo who became in charge of the case said, “Kang Daniel is extremely apologetic to fans about the ongoing matter, and he is showing willingness to conclude the dispute as quickly as possible so that he can return to fans.” He continued, “We will also try our best to settle the ongoing conflict in a timely manner.”[s] [soompi]
(Note: Kang Kyungyoon is the highly regarded reporter who initially reported the KakaoTalk chatrooms, and she exclusively wrote this positive article about Daniel.)
March 18, 2019: YTN Reports That LM Applied to Trademark Yoon Jisung’s Name
On March 18, YTN Star [Reporter Ji Seunghun 지승훈] reported that LM Entertainment had registered to trademark Yoon Jisung’s name, stylized in English as “YOON JISUNG,” on February 12. The media outlet inferred that the company did not apply for the trademark of Kang Daniel’s name due to their current dispute.
YTN Star explained that although an agency has the right to apply for the trademark of its artist’s name, it rarely does so. This is because it can be seen as restricting the artist’s ability to promote freely. It also added that in the case that Yoon Jisung transfers agencies in the future, there would be complications when he used his name, as LM Entertainment may own the rights to the trademark “YOON JISUNG.”[s] [soompi]
Later in the day, LM Entertainment confirmed the news and revealed, “We are in the stages of applying for the trademark of Yoon Jisung’s name.”[s]
March 20, 2019: LM's Response to ELLE Korea Pictorial
On March 17, ELLE Korea unexpectedly changed all of the magazine’s SNS headers to Daniel’s image and included a preview of Daniel’s cover image in the schedule and subscription pages. ELLE later removed the images and stated the April issue’s cover would officially be revealed March 20.[s]
On March 20, Kang Daniel was officially revealed as ELLE Korea‘s April issue cover model for Louis Vuitton along with Bae Doona.[s] [s] ELLE Korea linked Daniel’s personal Instagram @daniel.k.here instead of the account managed by LM in ELLE’s Instagram post.
At 4:42 PM, Hankyung Dot Com [Reporter Kim Soyeon 김소연] reported that after the release of the picture, an official of Kang Daniel’s agency said, “The image was taken before the dispute.”[s]
March 21, 2019: Daniel Files Injunction Against LM for Suspension of Contract
On March 21, Kang Daniel applied for the suspension of his exclusive contract with LM Entertainment.
His legal representative shared the following statement:
On [March] 21, singer Kang Daniel’s legal representative Yulchon LLC submitted an application to the Seoul Central District Court for an injunction against LM Entertainment for the suspension of his exclusive contract.
Yulchon lawyer Yeom Yongpyo (head of sports entertainment conflict department), who is in charge of this case, revealed, “Without the prior consent of Kang Daniel, LM Entertainment signed joint business contracts that sell Kang Daniel’s exclusive contract rights to third parties. The application for injunction was submitted as [LM Entertainment] completely breached [the terms of] his contract.”
He explained, “The decision for injunction is typically determined quickly in approximately one to two months, and if [the request] is accepted, Kang Daniel can immediately begin independent activities in the entertainment industry.”
He added, “Kang Daniel feels bad that the incident has become a legal [matter] and expresses his deep apologies to the fans who cherish him. He shared his hopes for the incident to be resolved as quickly as possible.”[s] [soompi]
(Note: At 11:15 AM, Sports Chosun reporter Baek Jieun 백지은, the same reporter who published the initial false accusations article, reported that LM’s side is also making legal preparations. In response to the one to two month decision period, Baek insinuated that the battle could be longer if the injunction application is rejected.[s])
March 21, 2019: Daniel's Side Prepares for Contract Termination Lawsuit
On May 18 at 9 AM, Star News [Reporter Yoon Sanggeun 윤상근] reported that Daniel’s side filed a contract termination lawsuit against LM on March 21. Daniel filed an injunction for the suspension of his contract a couple days prior on March 19.[s] [eng]
(Note: The contract termination decision may come sooner than expected since Daniel and his legal team were confident and filed for contract termination even before the result of the injunction hearing.)
March 25, 2019: MK News Negative Article
Reporter Park Seyeon 박세연 published another negative article about Daniel’s “poisonous and hard solo journey” while putting the blame on him. According to Park, an official said main reasons why entertainers request contract termination is due to mistreatment and then calls Kang Daniel’s request as “unusual.” The reporter also wrote that Daniel would have to start over his album preparations due to the LM situation.[s]
March 26, 2019: Daniel Reported to Have Temporarily Suspended Contact with Celebrities
At 8 AM, Ilgan Sports [Reporter Kim Yeonji 김연지] wrote that Kang Daniel changed his phone number and suspended contact with his celebrity contacts. He also did not participate in Wanna One’s KakaoTalk chatroom. According to an insider, Kang Daniel has not resolved his dispute with his agency yet. He did not want to propagate further rumors or have his side misinterpreted. He has naturally been unable to contact his friends, which is expected to continue until his agency situation is resolved.[s]
At 10:25 AM, SPOTV [Reporter Kang Hyojin 강효진] also reported that Daniel had moved all his belongings from his company’s premises before he sent his certification of contents to his agency supposedly to minimize direct contact and prevent leaked information.[s]
March 26, 2019 (8:56 AM) LM Releases Statement
Kim Munhee from law firm Jipyong relayed LM Entertainment’s statement on the injunction application and subsequent suspension of Kang Daniel’s contract.
March 21, Kang Daniel’s legal representatives, Yulchon LLC, released a statement saying that LM Entertainment “signed joint business contracts that sell Kang Daniel’s exclusive contract rights to third parties” and breached the terms of their contract.
LM Entertainment has denied the claims made by Kang Daniel’s side in full, saying that Kang Daniel’s side has made false claims and that despite their efforts, Kang Daniel’s representatives were wholly uncooperative in discussions, “changing representatives as well as their stance on issues several times.”
Below is the full statement from LM Entertainment’s legal rep:
1. Hello. This is lawyer Kim Munhee from the law firm Jipyong, representing Kang Daniel’s agency LM Entertainment.
I am relaying LM Entertainment’s official statement on the recent application for an injunction and subsequent suspension of his exclusive contract by Kang Daniel.
2. The exclusive contract between Kang Daniel and LM Entertainment is a standard exclusive contract provided by the Fair Trade Commission, and LM Entertainment has paid the signing bonus agreed to in the contract. Despite this, before his contract even went into effect, [Kang Daniel] sent us a notice through a representative vaguely saying that the contract was unfair, requesting that the contract be changed without giving us any specifics. Afterwards, we had four negotiation meetings with a CEO Won, who had declared himself a mediator, but we eventually received a notice from various lawyers with false truths, including a claim that [Kang Daniel] never received the signing bonus.
Moreover, this latest injunction from Kang Daniel’s side claims that LM Entertainment breached contract terms by signing over rights to a third party, but the contract in question is simply a contract in which LM Entertainment receives an investment from Kang Daniel’s old agency, MMO Entertainment, in order to best support Kang Daniel in his entertainment activities. LM Entertainment has never signed exclusive rights over to another party and holds all rights, including for album planning, fan meetings, concerts, and other performance contracts, merchandise businesses, casting, and management. LM Entertainment exclusively exercises these rights, with no participation from anyone.
3. LM Entertainment has refrained from taking any immediate action in the interest of reaching a mutual agreement, and has sat down several times with the various representatives of Kang Daniel in order to dispel misunderstandings and in a continued effort to reach a point of compromise. However, Kang Daniel’s side has changed representatives as well as their stance on issues several times, eventually ignoring what was discussed in our meetings and filing for an injunction and termination of his contract.
The situation is such that LM Entertainment has no choice but to carefully review the contents of the injunction request and to take legal action.
4. LM Entertainment had been preparing so that Kang Daniel would immediately be able to jump into solo promotions once his contract went into effect, and we regret having to relay this kind of news to Kang Daniel’s fans and to the public.
Though we have no choice but to move forward with the legal dispute, LM Entertainment will, with an open mind, continue its efforts towards regaining trust and reaching a compromise with Kang Daniel as well as working on getting Kang Daniel back to his activities as soon as possible. Thank you.[soompi]
(Note: Here is a recommended thread that counters LM’s statement. Daniel’s legal representative Seon Jongmoon’s phone call interview details are also translated.)
March 26, 2019 (11:55 AM) Daniel's Lawyer Refutes LM's Denial
Kang Daniel’s legal representative refuted LM’s claims that the agency did not breach the contract. Lawyer Yeom Yongpyo from law firm Yulchon revealed Daniel signed a contract with LM on February 2, 2018, a year before the contract went into effect on February 2, 2019. However, on January 28, 2019, LM signed a joint business contract that sold Daniel’s exclusive rights (including content creation and management rights) to a third party. Those core rights include rights to produce and distribute musical content, concert and international business rights and negotiation rights regarding Daniel’s activities in the entertainment industry.
LM also received a down payment from the third party that is ten times the amount the agency paid Daniel for signing the contract (Note: Soompi misreported triple). However, Kang Daniel did not receive any explanation in advance regarding the signing and the context of the joint business contract nor did he give his consent.
Kang Daniel later found out that LM Entertainment, whom he trusted, signed a joint business contract with a third party without his consent, and the legal battle began when the singer requested the agency to make corrections regarding this.
In order to smoothly solve the conflicts, Kang Daniel made numerous requests to LM Entertainment for corrections of the illegal and unfair events that are stated above, but he failed to hear back a positive response and decided to appeal for the court’s decision.
Yulchon is expecting the truth of this case to be revealed clearly through questioning of the contract suspension, and Kang Daniel is currently expressing his desire for reasonable results to come out so that he can return to the arms of fans as quickly as possible.[s] [soompi]
(Note: Part of the secret joint enterprise contract that Daniel’s side revealed can be found here. A summary of the clauses is included below.
- The third party has exclusive rights to Daniel’s recording production and distribution without any limitation on region. The third party has rights to distribute the albums through OOO.
- The third party has exclusive rights to concert-related business. The third party will grant these rights to OOO.
- The third party has exclusive rights to bargaining of entertainment activities. The third party has the rights to assign schedules or reject without Daniel’s approval.
- LM grants the third party the aforementioned rights. LM will let Daniel know and get his approval. If LM cannot complete their responsibilities, the third party can cancel immediately through a written notice.
Here’s a thread on why is it a problem to transfer rights to a third party. What would result is basically a slave contract.)
March 26, 2019: LM Further Denies Accusations and Removes IG Account
LM plans to take legal action against Daniel’s side for exposing and revealing the 3rd party contract. LM claims Daniel was aware of the contract between LM and MMO.
(Note: LM did not say Daniel gave his consent. Furthermore, there is no specific law as to how evidence is acquired in civil cases. Any evidence can and will be accepted as evidence.[s])
He also stated that Daniel extracted a portion of the content beneficial to him. The end of the contract stated that LM had rights of the exclusive contract and will exclusively use them.
Kim explained that selling entertainment rights generally occurred in the industry. LM said that Daniel was aware of the contract between LM and MMO.
Kim stated they will release an official statement in response to Daniel’s statement soon.[s]
Later that day, LM’s Instagram account @official_lm_ent was inexplicably removed.
March 27, 2019: LM Changes Stance, Claiming the 3rd Party Was a Joint Venture
LM released a new statement. Before LM denied the 3rd party transfer contract. LM later said the contract was an investment contract. In this statement, LM claimed the decision was a joint venture.
1. Hello. This is lawyer Kim Munhee from the law firm Jipyong, representing Kang Daniel’s agency LM Entertainment. We hereby deliver the following statements as LM Entertainment’s official response to the claims made by Kang Daniel regarding the joint business contract.
2. Kang Daniel and his representative are distorting the true nature of the joint business contract by purposely omitting the fact that LM Entertainment holds and can independently exercise all the rights of the exclusive contract [between the singer and the agency] and only extracting and revealing the parts that are favorable to them.
We only see this action being done with the purpose of provoking fans and forming public opinions that they can use as advantage, which will have unfair effects on the court’s decision. Moreover, the joint business contract Kang Daniel obtained was through illegal methods, and LM Entertainment will be taking legal action regarding this.
3. The joint business contract that has become the key point of the legal battle is an ordinary business contract that allows [LM Entertainment] to receive investment from third parties to carry out business of album production, concerts, and more. In exchange, the third parties are granted temporary rights such as album production and distribution rights and concert business rights. LM Entertainment still holds the rights of their artists without transferring them [to third parties].
Furthermore, the investment LM Entertainment received from MMO Entertainment was actually used for the entertainment activities of Kang Daniel and Yoon Jisung, another artist under the same label. All of this will be revealed through a trial at court.
4. Kang Daniel and his representative also argue that the legal battle started when the singer belatedly found out about the joint business contract and made requests to correct the situation, but this is not true. When Kang Daniel’s representative Mr. Seol first requested to make changes in the exclusive contract through a notice on February 1, 2019, Kang Daniel’s side was already aware of the joint business contract. However, they did not raise any question regarding the contract, and they continued to only negotiate to make changes in the exclusive contract.
[Kang Daniel] suddenly brought up the joint business contract through a notice via his lawyers on March 4, 2019, arguing that [LM Entertainment] did not pay [Kang Daniel] for signing [the exclusive contract]. This is a claim made only with the intention of terminating the exclusive contract.LM Entertainment even expressed willingness to terminate the joint business contract [with MMO Entertainment] to Kang Daniel if Kang Daniel did not wish to work together with MMO Entertainment. However, different from what had been argued until now, Kang Daniel’s side demanded to terminate the exclusive contract and submitted an injunction [against LM Entertainment] for the suspension of the exclusive contract.
We deliver our regret to fans and the public for allowing the situation to come this far, and we will try our best to solve the conflicts in a timely manner.[soompi]
LM’s Instagram account @official_lm_ent is back online.
At 1:48 PM, YTN Star [Reporter Ji Seunghun 지승훈] reported that LM said there’s an understanding that investors require information, but they claim they didn’t know how much consent was needed.[s]
March 28, 2019: LM Changes Stance, Says Consent Is Not Needed
On the prior day, an LM official claimed they didn’t know how much consent was needed. At 9:41 AM, YTN Star Reporter Ji Seunghun 지승훈, the same reporter of the previous consent report, published an article about LM’s changed statement. Despite Daniel’s lawyer revealing that the 3rd party contract had a clause requiring written consent, LM’s lawyer Kim Munhee told YTN Star that written consent was not needed. Kim also claimed MMO is only investing, and LM is solely exercising artist rights. Some of the investment was used in Jisung’s activities.[s]
(Note: A refutation to LM’s recent statement made on the 28th can be read here. The rebuttal against LM and other lawyers’ professional opinions can be read here. Lawyers think the contract does not look like an investment contract.[eng] An explanation of the contract and its ramifications can be read here.)
April 2, 2019: Dispatch's One-Sided Report
Dispatch [Reporters Kim Suji and Kim Jiho 김수지·김지호] released an exclusive report but did not delve into the main issue: selling Daniel’s exclusive rights to a third party without his consent. Please read this translation by all_in_daniel_k for a rebuttal against Dispatch’s article sourced from Pann.
According to the report, LM Entertainment and Kang Daniel got along well last year. Kang Daniel requested housing at a luxurious villa in the neighborhood of Hannam, and LM fulfilled this request by paying for the housing deposit of 950 million won (approximately $836,300).
Problems reportedly arose when a woman referred to as “Seol” entered the picture. “Seol” is an agent in Hong Kong who works with contracting hallyu stars for business like advertisements, events, and performances. She was listed as the legal representative for the initial certification of contents sent for the termination of Kang Daniel’s contract.
Earlier this year, Kang Daniel introduced “Seol” to LM, and “Seol” presented a proposal for business overseas. Conflict then started when “Seol” went to LM as Kang Daniel’s legal representative on January 31 and asked to see his exclusive contract.
On February 1, “Seol” sent the certification of contents to LM along with a power of attorney signed by Kang Daniel. “[Kang Daniel] signed the contract that includes unfair contract terms, so a request is being made for this contract to be deemed invalid and for the contract terms to be renegotiated by February 28,” the letter reads.
Kang Daniel’s contract with LM Entertainment was signed on February 2, 2018, and it was set to go into effect on February 2, 2019. The certification of contents was sent one day before this date.
Represented by the law firm Yulchon, a second notice was sent to LM Entertainment on March 4. One of the points presented was, “LM did not pay Kang Daniel the 50 million won (approximately $44,000) promised for signing the contract.” In response, LM presented proof of 48.35 million won (approximately $42,600) paid to Kang Daniel on April 14, 2018. This is the contract payment minus the withholding tax of 3.3 percent.
Another point argued is that LM Entertainment registered as a popular culture planning business on February 7, 2019 and was not registered at the time of the contract signing, which breaches the first clause of Article 13 in the contract.
LM Entertainment commented, “LM completed registration on February 7, 2019, which is five days after the start date of the contract. The management rights and fulfillment of duties are being carried out smoothly for another artist who signed with the same terms.”
The largest point of conflict is the joint business contract between LM Entertainment and MMO Entertainment. Kang Daniel’s lawyer previously mentioned that the joint business contract states, “The core rights of the exclusive contract, including the rights to produce and distribute musical content, concert and international business rights, and negotiation rights regarding [Kang Daniel’s] activities in the entertainment industry, will be exclusively given to a third party [MMO Entertainment].”
LM Entertainment argues that Kang Daniel and his mother were aware of the business partnership between LM and MMO. In addition, MMO does not have power to carry out any business without the agreement of LM Entertainment, CEO Gil Jong Hwa, and Kang Daniel.
As written in Article 3 of the contract, “MMO must respect the opinions of the agency and artist when exercising rights and planning business. When planning and carrying out new albums, concerts, and entertainment activities, they must be agreed to in advance by the agency and Gil Jong Hwa.”
Article 4 of the contract also states, “MMO grants exclusive rights to the agency for various tasks including planning, production, promotion of the artist’s entertainment industry activities in regards to the third clause of Article 3.”
In summary, MMO Entertainment invests 1 billion won (approximately $880,700) in LM Entertainment each year, and LM gives negotiation rights to MMO. The management rights belong to LM Entertainment.
For example, MMO proposed a fan meeting with CJ ENM, but the conditions offered by CJ ENM did not satisfy LM. As a result, MMO had to follow LM and signed a fan meeting contract with another company “T.” MMO does not have the power to contract a fan meeting without the agreement of LM and Kang Daniel.
The profit sharing ratio is 10 percent for MMO Entertainment, 40 percent for LM Entertainment, and 50 percent for Kang Daniel.
Based on a conversation exchanged between “Seol” and a director of LM Entertainment, Dispatch suspects that “Seol” appears to have been aiming for the money of “Won,” an M&A expert that has played a large part in various businesses within the entertainment industry. He was involved in YG Entertainment going public as well as the M&A of YG PLUS, and he earned at least 10 billion won (approximately $8.8 million) through YG PLUS. Additionally, he led the back door listing of J.Tune Entertainment in 2010. In 2018, he was indicted for the suspicion of manipulating stock prices of a company called Homecast.
When questioned by Dispatch, “Won” commented, “I don’t know who Kang Daniel is. I do not have plans to invest in the entertainment industry anymore. I hope it will be resolved well.”[soompi]
Reporter Lee from Gobal News discussed Dispatch’s aggressive media play in his YouTube video. Here is a summary.
(Note: It is typical for agencies to provide housing. LM did not gift an apartment to Daniel and Jisung. LM just provided the deposit, which the company will receive after the lease is over due to Korea’s jeonse. Also, LM CEO Gil lives in a rented house, but the lease contract is under MMO. On July 26, 2018, a couple days before Wanna One’s Hong Kong concert dates, Daniel and Minhyun were spotted sightseeing together all day. Daniel had a V LIVE in Wanna One’s hotel with staff on watch. Dispatch withheld and released unrelated information to push LM’s side. Hours after Dispatch’s one-sided article, Roy Kim’s misconduct was revealed. Kim is a Stone Music artist whom some LM staff members help manage.)
April 2, 2019: Yulchon's Response to the Dispatch Report
At 12:25 PM, Star News [Reporter Lee Jeongho 이정호] reported Daniel’s side. Kang Daniel’s lawyer Yeom Yongpyo commented, “We do not plan on releasing a separate statement or press release regarding the reports from this morning. We will not respond to every single claim made by the other party.”
The lawyer added, “The major issue in this conflict is whether LM Entertainment sold Kang Daniel’s exclusive contract rights to a third party. We hope that the truth will be revealed at the questioning on April 5. Please look forward to the result.”[s] [soompi] [eng]
At 12:50 PM, SBS funE reporter Kang Kyungyoon 강경윤 also covered Daniel’s side.[s]
April 3, 2019: Daniel's Lawyer Emphasizes Intent to Reveal Truth, Conveys Daniel's Message
At 12:47 PM, Sports Kyunghyang published Daniel’s lawyer’s reiteration.
“The truth will be revealed at court.
Before anything, the questioning for the injunction is expected to take place on April 5. As the truth will be revealed during the process of questioning, I think that it is not desirable for me to respond to the opponent’s claims one by one at this point.
The key point of this injunction request is whether or not LM Entertainment transferred rights of the exclusive contract with Kang Daniel to a third party without his consent and received compensation. I think the truth will be clear on this part.
Not only is it unfortunate that this problem had to go to court, but Kang Daniel also feels very regretful and apologetic to the fans that this unnecessary controversy was amplified.”[s] [soompi]
April 3, 2019: LM Attempts to Delay by Applying for Court Transfer
While Daniel’s lawyers were confident about the upcoming court hearing, LM applied for a court transfer two days before the actual injunction hearing in an attempt to delay.
April 4, 2019: April 5 Court Date Reportedly Postponed Because of LM's Court Transfer Request
At 11:16 AM, YTN Star [Reporter Ji Seunghun 지승훈] reported that the court hearing originally scheduled for April 5 at 2 PM will be postponed. The Department of Justice decided to postpone the date to question the validity of Kang Daniel’s request for an injunction against his agency. It is suspected that LM Entertainment made a request for the case to be transferred to a different court, thus resulting in the postponement of the date. The Department of Justice will be reviewing the request to make the final decision.[s] [eng] [soompi]
(Note: It’ll take around 2-7 business days for the court to make a decision whether to transfer.[s] Here is a thread explaining reasons why LM placed a transfer request to a different court.)
April 4, 2019: Daniel's Side Responds to Court Date Postponement
At 3:20 PM, Sports Today [Reporter Kim Nayeon 김나연] reported that Yulchon said it was true LM requested to postpone the interrogation on the 5th and is confirming the reason. The modified date will be designated later.
Yulchon emphasized that the main point of the injunction is whether or not contract rights were transferred to third parties without Daniel’s prior consent. Yulchon added that they’re certain it’s true.[s] [eng]
April 5, 2019: Original Date for the Seoul Central District Court Questioning
On March 26, Daniel’s law firm Yulchon revealed questioning would take place on April 5 at 2 PM KST at the Seoul Central District Court. The grounds for the injunction request are that LM Entertainment signed joint business contracts to transfer Kang Daniel’s exclusive rights to a third party without his consent.[soompi]
On April 4, it was revealed that the questioning will reportedly be postponed so that a decision about LM’s request can be made.
April 5, 2019: Jurisdiction, Fans Voluntarily Donating, Court Transfer Discourse
At 9:34 AM, Money Today [Reporter Song Minkyung (attorney) 송민경] published an article regarding LM’s transfer request. “Jurisdiction” is the term for a certain court handling a particular case. If LM’s transfer request is accepted, this will not affect the outcome of the trial but will have inconveniences associated with moving. If Kang Daniel’s injunction is granted, Daniel can carry out his entertainment activities independently from LM until the final outcome of a lawsuit.[s] [eng]
At 2:33 PM, Sports Donga [Reporter Lee Haeri 이해리] wrote that Hope Bridge Nationwide Disaster Relief Association said many Kang Daniel fans voluntarily donated to help victims of the Gangwon-do wildfire since early morning. Fans were not directed or enforced by anyone. 2.2k+ donations in Daniel’s name were made with a total of 74+ million won.[s] [s] [eng]
At 6:08 PM, Money Today [Reporter Song Minkyung (attorney) 송민경] speculated that LM likely requested a trial transfer from Seoul Central District Court to Western District Court in consideration of LM’s address in Seoul’s Mapo-gu. Jipyong, the law firm representing LM, is located in Seodaemun-gu, Seoul and is closer to Western District Court. The court is required to make a decision after hearing the transfer request. The reporter said LM’s transfer application was reasonably plausible, and it seems possible the case will be transferred. Entertainment lawyer Song Hyemi said if the trial date changes, it takes about a month. Current trials are scheduled around mid-May, so the re-allocated hearing could be at the end of May if LM’s transfer is accepted.[s] [eng]
(Note: LM revealed on February 14 that the lawsuit against malicious comments was filed at the Seoul Central District Prosecutors’ Office.[s] On February 12, LM provided a Gangnam address for fan support. Fans discovered it was an empty office located above a restaurant.[s]
Despite LM having a Mapo address, business has been conducted in a different Gangnam location. Jisung’s trademark address is in Gangnam.[s] Fans surmised that Daniel’s January 21 pre-filmed videos and Insta live, Daniel’s February 1 V LIVE and Jisung’s Valentine’s Day V LIVE were all filmed in the same company building. An LM staff member [who originally had Lime Music on his profile] posted the office’s interior back in late 2018 on Instagram. Daniel said in his V LIVE that he was in the Gangnam office [4:33, 47:57]. Some speculated that the Gangnam office that LM uses is Lime Music’s.)
April 9, 2019: Daniel's 30M Donation, LM Denies Affiliation with Third Party's KANG DANIEL Trademark Application
At 12:03 AM, it was reported through general media that Daniel donated 30 million won to help Gangwon-do relief efforts. Combined with his fandom’s donations, 150+ million won was donated in his name.[s] [eng]
At 9:32 AM, YTN Star [Reporter Ji Seunghun 지승훈] reported Mr. A from Gwangju attempted to register a “KANG DANIEL” trademark on March 15 for two categories related to programs/software and entertainment-related business. Kang Daniel’s side and LM denied any affiliation with Mr. A. Daniel’s side is making internal preparations to take action, while LM stated, “We are currently unable to apply for trademarks related to Kang Daniel. As we are in conflict with Kang Daniel’s side, our management related to his entertainment activities has been completely suspended.” The agency added, “‘A’ is not anyone of our party. We do not know who this person is.”[s] [soompi]
At 10:36 AM, Xports News [Reporter Jeon Won 전원] reported that Mr. A submitted a patent withdrawal application on April 8 and reconfirmed that Daniel’s activities have been suspended.[s]
(Note: Following the trademark news, Daniel’s donation was not exclusively covered in the Naver entertainment section.)
April 10, 2019: Daniel's Secret Donation, LV Opening, MMO Instagram Activity
A fan contacted Hope Bridge since Daniel’s name was missing from articles about celebrity donations. The staff member in charge said when celebrities donate, their company informs them typically by phone. Because Daniel isn’t in contact with his agency, he quietly donated 30 million won.[eng]
The Louis Vuitton Twist bag pop-up store campaign headed by Kang Daniel and Bae Doona had a VIP evening event prior to the official opening on April 11 (Doona attended but Daniel did not). The store will run until April 24.[s]
MMO’s Instagram account @mmoent.official inexplicably followed then unfollowed Daniel’s personal Instagram @daniel.k.here.[s] [s]
April 12, 2019 (10:17 AM): Korea Management Union/Federation (KMU/KMF) Uninvited Interference
At 10:17 AM, Newsen [Reporter Hwang Hyejin 황혜진] reported the Korea Management Union (Note: also known as Korea Management Federation [KMF], who previously sided with LM in an earlier article) released a statement implicitly siding with the company.[soompi]
(Note: The KMF is a union for managers with 4+ years of experience and is not a legal body. LM’s employees Noh Hyunjun, Gil Jonghwa and Jung Chunyoung are members.[s])
April 12, 2019 (4:04 PM): LM's Court Transfer Requests Rejected, Court Hearing Rescheduled for April 24
At 4:04 PM, YTN Star [Reporter Ji Seunghun 지승훈] reported the rescheduled court hearing is now April 24. The reporter later added that Seoul Central District Court ruled it had jurisdiction and rejected LM’s two written requests for a court transfer.[s] [eng] [soompi]
(Note: This article was edited later to include that Seoul Central District Court had jurisdiction and LM’s attempts were rejected. Soompi translated the initial news before the edits. Leading up to and following the rescheduled court date news, a large influx of news about the KMF statement flooded the Naver entertainment section. 70+ KMF statement articles were released that day, and 30+ were released after the court date news was reported.[s])
At 4:54 PM, Yonhap News revealed the time of the injunction hearing was 3:30 PM. This time was only included as the last sentence in an article about KMF’s statement. YTN Star did not report the time.
At 6:23 PM, Sports Chosun [Reporter Kim Yeongrok 김영록] confirmed that LM attempted to transfer the case to Western District Court due to LM’s Mapo address, but Seoul Central District Court denied LM’s attempts. Daniel’s Yulchon lawyer Yeom Yongpyo stated the sentence timing is decided by the court, and it is not appropriate for them to influence the trial. He stated the new questioning date is set up for April 24.[s] [eng] [eng])
April 19, 2019: Kang Daniel Submits Written Statement in Preparation for Court Hearing
On April 23 at 3:19 PM, Money Today [Reporter Song Minkyung (attorney) 송민경] released an article revealing Daniel submitted a written statement on April 19 for the upcoming injunction hearing.[s]
April 24, 2019: Kang Daniel Hashtag Support Project
The support hashtags that won OurDaniel’s suggestions poll were #StandByDaniel (3 – 4:30 PM KST) for the court hearing and #OurChoiceDaniel (7:30 – 9 PM KST) for The Fact Music Awards since fans won awards for Daniel.[s] [s] The organizer said they’ll give the trophies to him since he couldn’t attend.[s] [s]
The hashtags trended in various countries. #StandByDaniel trended worldwide.[s]
April 24, 2019 (3:30 PM): Rescheduled Injunction Hearing
On April 12, YTN Star [Reporter Ji Seunghun 지승훈] reported the rescheduled court hearing would be on April 24 at Seoul Central District Court. Yonhap News reported the hearing time was 3:30 PM. The court will decide when the outcome of the injunction hearing will be determined.
Both sides presented their arguments at the Seoul Central District Court in an open court. Daniel was not physically present, but his written statement was relayed. The court also substituted the investor discourse with a written explanation. The judge even told LM to stop with the conspiracy theories.[s]
Daniel’s side stated, “[Gil Jonghwa] is also leading the development of malicious media play. As trust was already broken, it is difficult to maintain the contractual relationship.”[s]
Despite LM being founded in 2018, LM claimed to have supported Daniel since 2015 and denied damaging Daniel’s name. LM’s side also claimed they did not properly explain the contract and will do so in the future.[s] [s] [s]
When LM’s side asked if Daniel would keep the contract if LM cancelled the joint business contract with MMO, Daniel’s side stated, “Even if the joint business contract is cancelled, we won’t keep the exclusive contract as the trust is broken.”[s]
The court allotted one week for Daniel’s side to submit additional evidence by May 1. LM submitted 80 pages of information, so the court told LM to remove the redundancies. LM was given until May 8 to resubmit.[s]
April 24, 2019 (5:41 PM): Daniel's Message to Fans
At 5:41 PM, YTN Star [Reporter Ji Seunghun 지승훈] published Daniel’s message to fans through his legal representative. He said, “First, I thank all of my fans for showing me lots of attention and love. It’s sad that I wasn’t able to spend time [with fans] for such a long time, but I came all this way thinking that I want to take the right path, even if it takes a bit longer. I will make sure not to fall short of the expectations of my fans, who are trusting me until the end.”[s] [soompi]
April 25, 2019 (8 AM): Media Play Using Social Media Sources
At 8 AM, Ilgan Sports [Reporter Hwang Jiyoung 황지영] used questionable social media sources as the basis of her article. According to those social media posts, Daniel reportedly left in mid-April to meet a famous producer in Los Angeles.[eng]
(Note: The rumors originated from Chinese sites and were spread around by his antis. Just one day after LM’s loss, this media play article was published using rumors that were already discredited in early April.)
April 25, 2019 (4:42 PM): Daniel's Side Denies Rumors of Daniel Working on Music
At 4:42 PM, YTN Star [Reporter Ji Seunghun 지승훈] reported Daniel’s lawyer’s statement in response to rumors of Daniel working on new music. One of his representatives stated to YTN Star, “We checked with him personally about whether the reports were true. He is not preparing for any official promotions in the entertainment industry, such as working on new music.”[s] [soompi]
May 1, 2019: Seoul Central District Court Additional Materials Deadline for Daniel's Side
The court decided May 1 is the deadline for Daniel’s side to submit additional evidence for review.[s]
May 8, 2019: Seoul Central District Court Additional Materials Deadline for LM's Side
The court decided May 8 is the deadline for LM’s side to cut down their original 80 page submission and submit additional evidence for review.[s]
(Note: An outside attorney believes that a second hearing would not be needed. He added in his YouTube comment that a court decision usually appears after a month or so following the additional written submissions.[s] [s]
Judge Park Beomseok [박범석] is the judge for the injunction and has a reputation of being a discreet and reasonable person who reviews documents very thoroughly. He will make a decision after May 8 after reviewing the submissions.[s] At the 56th Law Day ceremony on April 25, he previously stated that when LM tried to explain what happened behind the scenes, he tried to focus on the core of the dispute, saying, “I received the data in writing, so I will only consult that.”[s])
May 10, 2019 (6:35 PM): Injunction Decision Ruled in Favor of Daniel's Side
The Celuv [Reporter Lee Wonseon 이원선] at 6:35 PM and Top Star News [Reporter Lee Jeongbeom 이정범] at 6:41 PM broke the news that the court sided with Daniel to suspend the exclusive contract with LM. Kang Daniel’s legal representative Yulchon released an official statement:
“Hello.
This is lawyer Yeom Yongpyo of Yulchon LLC, the legal representative of singer Kang Daniel.
On March 19, Kang Daniel filed an injunction to the Seoul District Court to suspend his exclusive contract with his agency, and on May 10, the courts have reached the verdict to accept his request.
As a result of the Seoul District Courts’ decision to accept his request, Kang Daniel will be able to pursue independent activities as a celebrity.
The courts found that the joint business contract LM Entertainment signed with a third party on January 28, 2019 was a contract that transferred the majority of management rights for Kang Daniel to a third party. As Kang Daniel had not been contacted for prior consent, LM Entertainment’s actions not only went against the exclusive contract, but they also broke the trust that is the foundation of the exclusive contract. Therefore, it was decided that LM Entertainment’s actions made it difficult to maintain a relationship between the agency and Kang Daniel.
As a result, the exclusive contract between Kang Daniel and LM Entertainment has been suspended, and LM Entertainment must not interfere in Kang Daniel’s activities, and they must not negotiate or sign contracts on his behalf or require him to pursue activities on their behalf.”[s] [s] [soompi]
Daniel’s name trended on various online platforms for hours. The support hashtags were #KangDanielWon and #WelcomeBackDaniel.
Daniel’s side received a full citation [jeonbuinyong 전부인용], meaning the judge sided with Daniel on every argument presented. Some said Kang Daniel became the first artist to receive a court ruling that was completely in favor of all points made.[eng]
May 10, 2019 (7:10 PM): LM Plans to Object to the Court Decision
At 7:10 PM, eDaily [Reporter Kim Eunkoo 김은구] revealed LM’s plans to object the court decision and file a lawsuit.[s]
(Note: Daniel is still free to pursue activities. In the meantime, Korean fans have been preparing a case to the Ministry of Culture, Sports and Tourism against LM regarding LM’s Mapo address violating the independent office requirement based on Article 26 paragraph 2 of the Pop Culture and Arts Industry Act.[s] [s] [s] Here is the answer from the head of Mapo office saying there will be an administrative penalty.[s])
May 10, 2019: Daniel Returns to Fans and Posts on Instagram
Daniel posted a handwritten letter on his personal Instagram.
“I’m writing [this letter] because I wanted to inform everyone, who’s believed in and waited for me during these long three months, of [this news] myself. If I didn’t have the support and attention you’ve given me, I don’t think I could have gathered up the courage like this. During the long, long period of silence, I was touched and even cried as I read each and every one of your supportive messages. I was able to endure each day through your warmth and faith.
Although I could have made [my situation] easier and faster by making compromises, I wanted to show you this image of myself going in the right and honorable direction, even if I went slowly.
Thank you so, so much to all the fans who believed in my actions and my thoughts.
I’ll now return all the courage and faith that I’ve received from everyone so far. I’ll appear on the precious stage that you guys have helped made possible with a great song and better image.
All the fans! Please keep an eye out for rookie singer Kang Daniel, who will be making a fresh start.
Once again, thank you so much.”[soompi]
May 11, 2019: LM Claims to Be Above the Law in New Statement
On May 11, a representative of LM Entertainment stated, “We intend to file a formal objection and fight until the end against the injustice of the original suit and the court’s recent ruling. We will use every means at our disposal to deal with this affair.”[soompi]
(Note: A lawyer believes it is very rare for the court’s decision to change. Daniel is protected by the law, and entertainment activities are legally guaranteed without LM’s interference.[s] [s] [s])
May 13, 2019 (12:33 PM): KMF and KEPA Backpedal in New Statement
At 12:33 PM, Hankook Ilbo [Reporter Lee Hoyeon 이호연] reported new statements from KMF and KEPA from the 12th. Even though LM violated the exclusive contract, the associations did not comment on that and instead focused on brokers. Officials claimed they never said Daniel was wrong, which contradicts KMF’s previous threatening statement. According to anonymous sources, some industry reps are waiting for the dispute to conclude, naming CJ ENM’s stance or behind the scenes suspicions as reasons. Another official said many advertisers and producers are waiting for the dispute to be resolved, and overseas performances are likely. Officials recognized Daniel’s buzz but differed in opinion over the timing of his return to the industry.[s] [s]
May 13, 2019: LM's Address Changes to Avoid Penalty
The head of Mapo-gu office stated in a letter on May 3 that LM would receive an administrative penalty for violating the independent office requirement. LM avoided this punishment by changing the office to Gangnam on May 13.[s]
May 13, 2019: LM Files Objection
On May 30, Daily Economy [Reporter Lee Dagyeom 이다겸] reported that LM filed a formal objection against the court’s decision on May 13.[s]
May 15, 2019 (8:01 AM): Threatening Ilgan Sports Article
At 8:01 AM, Ilgan Sports [Reporter Kim Yeonji 김연지] published an article with the mocking title, “Kang Daniel, It’s Too Early to Laugh… An Unfinished Fight.” Kim wrote that if the legal dispute continues, the debut timing would be after this year and surmised that Daniel’s activities in Korea are unclear until the two sides’ issues are resolved. The article also included that previous entertainers whose issues have not been resolved were sanctioned by the KMF and KEPA, and their days were spent in vain due to legal battles. The article failed to address LM’s contract violations and concluded by saying there were proposals from overseas.[s]
May 16, 2019: Daniel's Lawyer on MBC Section TV
Daniel’s lawyer Yeom Yongpyo appeared on MBC’s late night Section TV news. The segment covered the court’s decision that LM broke the trusting relationship and should not interfere with entertainment activities. As long as the current decision is not reversed, Daniel can pursue any entertainment activities. He stated that they will actively review and respond if the agency files an objection.[s] [s] [s]
May 18, 2019 (9 AM): Contract Termination Lawsuit Reportedly Filed in March
May 19, 2019 (5:54 PM): Article About Artist Consent and Court Judgment
At 5:54 PM, Korea Economy [Reporter Ahn Daegyu 안대규] reported about the Seoul Central District Court ruling. The joint business contract between LM and the third party transferred most of Daniel’s exclusive rights to the third party. LM’s actions not only violated the exclusive contract but also destroyed the trusting relationship underlying the contract.
Daniel’s lawyer Yeom Yongpyo stated that they emphasized Daniel’s prior consent was not received, and the court accepted. The is the first case [choechoi panrye 최초의 판례] that the nature of the joint business contract was a transfer of exclusive contract rights. He added that it is significant that the entertainer obtained rights back in a dispute with the agency.[s] [s] [s] [s]
May 22, 2019: Update on LM's Mapo Office Violation
The head of Mapo office previously stated that LM would receive an administrative penalty fee for violating the independent office requirement.[s] Mapo-gu requested that LM fix the problem by mid-June. LM allegedly did not want to pay the penalty and transferred to Lime Music’s office address in Gangnam on May 13. The case is now closed on the Mapo website.[s] [s]
May 24, 2019: Conversation with KMF
According to a fan who spoke with KMF, a meeting will be carried out next week regarding whether LM is illegal. Many people who made complaints want KMF to focus on taking the appropriate action against LM and banning illegal media play.[s]
May 29, 2019 (10:49 AM): Daniel's Lawyer Will Be Featured in a Magazine
At 10:49 AM, Consumer Times broke the news that Human Aid’s June 3 magazine issue has Daniel on the cover and will have an exclusive interview with Daniel’s lawyer. The proceeds from this magazine will be used for media education and job creation for people with developmental disabilities.[s] [s]
Peachup_961210, the fansite that provided the cover image, said there will be articles on the fandom’s donations and Daniel’s lawyer.[s] 20k copies will be printed, doubling the original amount.[s]
May 30, 2019 (11:12 AM): News of Scheduled Court Hearing for LM's Objection
At 11:12 AM, Daily Economy [Reporter Lee Dagyeom 이다겸] reported that LM filed an objection on May 13, and the first court hearing is on June 12.[s] [soompi]
The time of the court hearing (11 AM) was reported in a separate article with a negative tone at 12:50 PM by Star News (Reporter Lee Jeongho 이정호).[s]
(Note: People typically appeal to a higher court instead of applying for an objection. This is because the objection is heard in the same court, and there is little chance of the sentence changing. LM applying for an objection rather than an appeal is a delay tactic. After an objection is rejected, LM can appeal in about 5 days.[s]
Daniel has not appeared on social media or pursued any public activities since May 10. Pursuing activities before the hearing could delay the decision since LM could file an injunction or contract breach lawsuit against Daniel within that time frame from March 13 to June 12. This would complicate the contract suspension process and postpone the contract termination hearings.[s])
May 30, 2019 (3:27 PM): Factual Coverage of the Injunction and LM's Objection
At 3:27 PM, Money Today [Reporter Song Minkyung (attorney) 송민경] published a factual article. The objection will be heard by the same presiding court and judge. Aside from the district court, litigants can appeal to the high court to dispute the decision. The appeal process does not halt the injunction ruling that the contract is suspended. Daniel is able to do his own entertainment activities independently of LM.[s] [s]
May 31, 2019: KONNECT Entertainment Creation
Unbeknownst to many, Daniel established his one-man company KONNECT Entertainment on May 31.[s]
June 3, 2019: Daniel's Lawyer in Human Aid Magazine
Daniel’s lawyer is featured in Human Aid Magazine’s first issue. Other than his kind words about Daniel, there was nothing new revealed about Daniel’s situation.[s]
June 5, 2019: Daniel's Company KD (케이디) Corporation Is Registered
Daniel registered his company KD Corporation (케이디 주식회사).[s]
June 9, 2019 (3 PM): Daniel Announces His First Activity: Instagram Live
At around 3 PM KST, Daniel posted on his Instagram he would hold an Instagram Live at 11 PM KST.
“여러분! 오늘밤11시 인스타 라이브를 통해 여러분을 만나려 합니다. 우리 오늘밤에 만나요!!”
“Everyone! I’ll meet you later via Instagram Live tonight at 11. We’ll see each other tonight!!”
June 9 is also the second year anniversary when he ranked first for the very first time on Produce 101.
June 9, 2019 (11 PM): Daniel's First Instagram Live Since February
Daniel updated fans in his first Instagram live since February. He said he’s in the preparation stages for his debut and is working on and making music. He thanked fans and concluded with, “Now I will run to you guys. See you soon.”[soompi]
June 10, 2019 (8:40 AM): Court Date Delay Is Reported
At 8:40 AM, MK News [Reporter Park Seyeon 박세연] predictably reported negative news. The court hearing about LM’s objection was delayed from June 12 to June 26 since LM changed lawyers.[s]
June 10, 2019 (9:26 AM): News of Daniel's One-Man Agency KONNECT Entertainment
At 9:26 AM, Sports Donga [Reporter Hong Seyoung 홍세영] reported Daniel established a one-man agency KONNECT Entertainment (커넥트ENT). He will make his debut under KONNECT Ent once he definitively obtains rights from LM after LM’s objection hearing.[s] [s]
On June 10, Kang Daniel’s new agency KONNECT Entertainment confirmed that he had recently set up an office in the Gangnam district of Seoul. The agency’s name comes from the words “Korea” and “connect,” meaning that Kang Daniel aims to connect Korea to the rest of the world through his future activities.
A representative of KONNECT Entertainment explained the singer’s decision to found his own agency by stating, “Kang Daniel decided to go in the direction of establishing a one-man agency after considering from every possible angle what kind of agency structure would best suit his long-term activities.”
The agency representative added, “His decision was also heavily influenced by the fact that he wanted to return to his fans, who have waited for a long time, as quickly as possible. It was because a one-man agency, which can be both focused and effective in its work, is best-suited to [helping him] promote as soon as possible.”[soompi]
June 10, 2019: Daniel's Response to Unconfirmed News
(Note: The articles about his alleged activities were marked as 단독 [exclusive] and were not officially confirmed. The official articles say 공식.[s])
At 10:20 AM, Ilgan Sports [Reporter Kim Yeonji 김연지] reported a music industry official said Daniel is preparing to debut in July.[s] At 10:47 AM, Xports News [Reporter Jeon Ahram 전아람] reported Daniel’s side said there’s no decision on the July debut.[s]
At 3:20 PM, Ten Asia [Reporter Kim Sookyung 김수경] reportedly said Daniel will have an Asia tour in the second half of the year.[s] At 4:02 PM, Xports News [Reporter Jeon Ahram 전아람] reported that Daniel’s agency denied it and emphasized the album is the priority before deciding activities.[s] [soompi]
At 4:18 PM, YTN Star [Reporter Ji Seunghun 지승훈] reported Daniel is listed as the CEO of KD Corporation (케이디 주식회사) and is expected to enter into various business areas in the future.[s] At 5:04 PM, MT Star News [Reporter Gong Mina 공미나] wrote Daniel’s side clarified that there is nothing definite about the tour, publication of pictorial books, nor expansion of business.[s] [soompi] At 7:26 PM, My Daily [Reporter Lee Yeeun 이예은] reported that Daniel’s entertainment industry affairs will be handled by KONNECT. All other related work will be taken charge by KD Corporation. KONNECT and KD Corporation are companies with two different purposes. While he was setting up the two companies, Kang Daniel received help from lawyers and specialists. They advised that this method was the best in building his company, so he established them separately.[s] [s]
June 12, 2019 (11 AM): Originally Scheduled Court Hearing for LM's Objection
June 20, 2019: KONNECT Responds to Unethical LM-Affiliated Journalist
LM-affiliated news outlet Ilgan Sports [Reporter Kim Yeonji 김연지] published an article with false information. KONNECT later confirmed Daniel was meeting with a music distributor and negated Ilgan Sports’ false statements.[soompi] Shortly after KONNECT’s statement, the reporter edited her article’s title.
June 26, 2019 (11 AM): Rescheduled Court Hearing for LM's Objection
On June 10, it was reported that LM’s court date changed from June 12 to June 26.[s]
The hearing was held at 11 AM. LM stood by the investment contract stance and lamented about LM’s reputation in the industry. LM offered to assist KONNECT if the injunction is dismissed. Daniel’s side refused due to broken trust and said Daniel’s side also suffered losses. The court stated a decision will be made on July 10.[s] [s] [soompi]
June 28-29, 2019: Positive Future Outlook
At 4:13 PM on the 28th, News1 [Reporter Hwang Mihyun 황미현] said KONNECT reportedly scouted an executive from Cube Entertainment for overseas promotions.[soompi]
At 8:00 AM on the 29th, Star News [Reporter Gong Minah 공미나] reported there was a lot of public broadcast love calls for Daniel.[s] Later at 11 AM, Star News [Reporter Yoon Sanggeun 윤상근] reported a renowned foreign choreographer will work on his title.[s]
July 9, 2019: Daniel's First Public Appearance Since January
Daniel made his first public appearance since the last day of Wanna One’s final concert on January 27. He was officially appointed as Busan’s honorary ambassador and tossed the first pitch for the Lotte Giants’ home game.[soompi]
July 10, 2019: Court's Deadline for Injunction Objection's Additional Documents
July 10 is the deadline for Daniel and LM to submit additional documents for the objection hearing.[soompi]
July 18, 2019: LM-Affiliated Journalists Media Play
At 8:01 AM, Sports Seoul [Reporter Lee Jiseok 이지석] reported Sony Music Korea invested billions of won for Daniel’s debut (Note: The LM-affiliated journalist began the article stating Sony Music Korea was a subsidiary of Sony, a Japan company [even though Sony Music is US-based]. This inclusion was deliberate since Japan and South Korea are embroiled in a trade war.[s] A Sony Music investment article became one of the top viewed articles and invited a lot of negative attention due to the anti-Japanese sentiment).
After news of Daniel’s solo debut album having 5 tracks and announcement of fanmeets, Ilgan Sports reportedly said Daniel won’t attend music shows or programs due to the ongoing company dispute. KONNECT refuted this.[s] [soompi]
July 25, 2019: Daniel's Solo Debut
Daniel made his solo debut on July 25 with his title song “뭐해 (What are you up to)” from special album color on me. He held a showcase at 4 PM in Yes24 Live Hall and released his digital album at 6 PM KST. A fan showcase was held at 8 PM.[s] [soompi] Physical albums were distributed on July 29.
August 5-8, 2019: Yellow Press with LM-Orchestrated Media Play
On August 5 at around 9 AM, it was reported that Daniel set the new record for the highest 1st week sales for a solo artist on Hanteo Charts.[soompi]
Less than an hour later at 10:11 AM, Dispatch [Reporters Oh Myungju and Park Hyejin 오명주·박혜진] targeted Daniel again following the April 2 one-sided article written in collusion with LM. This dating news article was originally intended to be posted on July 20 at 7:59 PM. Dispatch claimed the article was delayed to avoid Daniel’s debut, yet Dispatch did not have proper photo proof at that point. The photo Dispatch used was taken outside Daniel’s company building on July 23, the day of the V LIVE.[soompi] Dispatch also claimed that the car photos were taken on July 25, but evidence suggests the date is falsified.[s] Despite Dispatch’s lack of proof, JYP and Daniel confirmed the couple was meeting with good feelings. This tip off broke Dispatch’s rule to not report on rising stars or rookies (Note: As the couple started dating in early 2019, LM staff reportedly knew about it[s]).
On August 6, KONNECT made a firm statement about taking legal action to protect Daniel.[s]
On August 8, LM-affiliated news outlets reported about Wanna One’s 2nd anniversary meeting. At first, SPOTV reported that all members except Jisung were in attendance at 7:22 AM. The article gathered positive attention in 2 hours and helped the article trend, only to then change the title and content by pinpointing Daniel as the missing member. At 7:43 AM, Ilgan Sports [Reporter Hwang Jiyoung 황지영] wrote exclusive information that the dinner was paid by Jisung through an LM manager. Following the publication of this news, SPOTV’s report removed Daniel from the attendees.[s]
(Note: This reunion organized by LM was already heavily media played on August 7, even suggesting at first that members were going to meet fans as a group. A private reunion became a public spectacle. Daniel not attending the reunion forced KONNECT to respond stating Daniel had an unexpected schedule related to overseas fanmeets.[s])
On August 9, Daniel and Yulchon officially filed for criminal complaints to the Seoul Metropolitan Police’s cyber crime unit. Daniel was experiencing severe emotional distress from the past few days.[soompi]
September 24, 2019: Original Date for Seoul High Court Appeal Hearing
On August 21 at 2:55 PM, it was reported that the Seoul High Court appeal hearing would take place on September 24. On September 2 at 7:06 AM, Ilgan Sports [Reporter Hwang Jiyoung 황지영] reported Yulchon submitted a date change request on August 29. The Seoul High Court appeal hearing was delayed to October 1. Despite the delay being only a week, the reporter media played by saying it’s a month.[s] [s]
September 27, 2019: Legal Dispute Ends
At 8:20 AM, Yonhap News [Reporter Lee Eunjung 이은정 ] reported that according to the Korean Entertainment Management Association (CEMA), the contract dispute between Kang Daniel and LM Entertainment is officially over. Both sides agreed to end their dispute and terminate the exclusive contract to prevent any further damages.[s] [soompi] LM and KONNECT confirmed and provided statements around 10 AM.[s] [s] KONNECT’s statement ranked among the most viewed articles in Naver. Fans celebrated with the #KangDanielisFree hashtag.
October 10, 2019: LM Deletes Daniel Social Media
LM made a statement on Daniel’s LM fancafe that old SNS would be deleted (Instagram, Twitter, Facebook, YouTube, Weibo, V LIVE). The fancafe was scheduled to be deleted on October 26. Less than 40% voted to keep it, so it was deleted. Daniel’s other Instagram was not given the same courtesy and was deleted without any notice.
Understanding the Kang Daniel x B2M-MMO-LM Relationship
[Updated June 2019]
Other staff members are listed here.
In 2014, Kang Daniel became a trainee under B2M Entertainment (비투엠엔터테인먼트 / Artists: Lee Hyori, Davichi, Spica, Eric Nam). B2M was founded in 2010 by Gil Jonghwa (길종화), who had worked as a manager and in marketing at DSP Media. In July 2015, the company formed a strategic alliance with CJ E&M Music. But around 2016, the company went into management separation due to financial problems, which led to some B2M artists and trainees moving to MMO Entertainment, a subsidiary under CJ E&M Music (now Stone Music Entertainment) and others being co-managed by CJ E&M. The B2M staff became the MMO staff, and Gil Jonghwa became an executive producer at Stone Music Entertainment.
MMO Entertainment (엠엠오엔터테인먼트 / Artists: Son Hoyoung, Roy Kim, IN2IT) was established in 2014 by Song Donghoon (송동훈). It was registered in KOCCA (Korea Creative Content Agency) on December 19, 2016 by the current CEO, Jung Hyungjin (정형진), who is also the CEO of Stone Music Entertainment.
In 2017, Kang Daniel participated in the second season of Mnet’s Produce 101 as an MMO trainee. However, it was revealed by Daniel that the company was very lacking in facilities, as it was only a building with an underground practice room. It also struggled financially and hence could not afford dance or singing lessons. After the show ended and Daniel became the winner, he officially signed as an MMO artist. During Daniel’s time as a Wanna One member, the profit distribution was 25% CJ E&M, 25% YMC/Swing, and the remaining 50% went to individual agencies and the members. Profit division between the agency and the artist depended on the individual agency’s contract.
On January 31, 2019, it was announced that Kang Daniel and Yoon Jisung would move to LM Entertainment (엘엠엔터테인먼트), a newly created company with little known public information available other than being affiliated with Stone Music Entertainment. In the official Korea Management Federation (KMF) website, LM Entertainment’s co-director Noh Hyunjun (노현준), who is an executive director from B2M and MMO, is registered as the person in charge of managing Kang Daniel, Yoon Jisung, Davichi, Roy Kim and Eric Nam as part of LM Entertainment.[s]
(Note: When news first came out that Daniel would move to LM Entertainment, a couple of unreliable news outlets revealed that the company was founded by Shin Donggil (신동길), the former general manager of YMC Entertainment and also the founder of Swing Entertainment.[s] Shin Donggil was the person in charge of Wanna One’s activities from June 1, 2018 until January 27, 2019. However, no reputable news sites have confirmed Shin Donggil’s affiliation with LM.)
According to the KIS report and Saramin, a Korea-based human resources service, LM Entertainment was established January 30, 2018 by Gil Ingyu 길인규 as Gil MNE 길엠앤이 (name changed to LM on December 31, 2018) with 1 million won capital.[s] The company was registered as LM in KOCCA on February 7, 2019 by Yang Jongseon (양종선), who is speculated to be Gil Jonghwa’s wife and a manager from MMO Entertainment. The founder of B2M (Gil Jonghwa) is also registered in the KMF website as the staff in charge of managing Kang Daniel, Yoon Jisung, Davichi, Roy Kim and Eric Nam as part of LM Entertainment,[s] along with the previously mentioned staff members Noh Hyunjun (노현준) and Jung Chunyoung (정천영).[s] Jung Chunyoung is another staff member from B2M and MMO. On April 2, it was confirmed through a Dispatch article from LM Entertainment’s side that the company’s CEO is Gil Jonghwa.
MMO Entertainment
Main Business Address: Gangnam-gu, Seoul, Korea 146 Road 35 (Nonhyun-dong)
서울특별시 강남구 강남대로146길 35 (논현동)
Jurisdiction: Seoul Gangnam-gu Office
LM Entertainment
Previous Address: Mapo-gu, Seoul World Cup North Road 4 Gil 77 (Donggyo-dong)
서울특별시 마포구 월드컵북로4길 77 (동교동)
Previous Jurisdiction: Seoul Mapo-gu Office
Current Address Since May 13, 2019: Seoul, Gangnam-gu, Nonhyeon-ro 152 Road 34 (Sinsa-dong)
서울특별시 강남구 논현로152길 34 (신사동)
Jurisdiction: Seoul Gangnam-gu Office
We would like to also recommend checking this (this link doesn’t work anymore) Twitter thread by all_in_daniel_k, further explaining leaseholder rights of offices and a personal apartment between LM and MMO. This (this link doesn’t work anymore) is also a recommended thread about the relationship between LM and MMO. This is an explanation on LM, Lime Music and MMO. This (this link doesn’t work anymore) thread delves into how LM sold rights to third parties and violated the contract. This analysis explains how LM and Lime Music were established as a way to exploit Daniel.