CJ ENM, Mnet accused of unfair practices over production of 'Great Seoul Invasion'

Producer Lee Jong-hyun of MPMG, right, and attorney Kim Jong-hee hold a press conference at MPMG’s office in Seoul, Wednesday. Yonhap

MPMG, a music and entertainment company, has accused CJ ENM and Mnet of unfair business practices during the production of the 2022 band competition program “Great Seoul Invasion,” claiming it covered all production costs despite the show being broadcast under Mnet’s name.

At a press conference held at MPMG’s headquarters in Seoul on Wednesday, producer Lee Jong-hyun and attorney Kim Jong-hee said the company decided to disclose the case 3 years after the program ended “to prevent further damage.”

They also confirmed that a formal complaint had been filed with the Fair Trade Commission against CJ ENM and Mnet.

Lee said that MPMG initially planned to co-produce the program with CJ ENM but ended up shouldering the entire financial burden — including production, marketing, and a postshow concert.

“This was a 100 percent privately funded project,” he said. “We invested over 5 billion won ($3.7 million) in total, but the contract was framed as a sponsorship deal, allowing Mnet to retain the intellectual property rights without contributing any production funds.”

Lee alleged that Mnet failed to honor key commitments, such as supporting participating artists, and that communication from the network was “virtually nonexistent.”

He added, “No other precedent exists in which a company contributed nothing but took the IP. This unreasonable abuse of power has caused years of economic, operational and emotional damage.”

Attorney Kim echoed the claim, calling the case “a clear example of structural unfairness where a dominant broadcaster exploited a smaller partner.” He said, “The agreement that was supposed to be a co-production was unilaterally changed to a sponsorship contract. MPMG’s input was disregarded during the contract process.”

MPMG said it is demanding an explanation regarding whether CJ ENM executives were aware of the situation, an official apology and compensation for its financial losses.

“We’ve organized all related evidence,” Lee said. “If the leadership knew about this, we want an acknowledgment and a sincere apology. If they didn’t, the company should still take responsibility and provide fair compensation.”

CJ ENM refuted the allegations, calling them “one-sided and inaccurate.” In a statement to the Hankook Ilbo, the company said, “The 2022 ‘Great Seoul Invasion’ was proposed by MPMG and produced through external investment under a sponsorship contract. According to mutual agreement, MPMG retained concert, management and master recording rights, while CJ ENM held broadcasting and distribution rights.”

The statement continued, “We put together an experienced production team and met MPMG’s requests in good faith. We regret that the outcome did not meet expectations, but strongly deny the claims. We will take all necessary measures, including legal action, based on facts and contractual evidence.”

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by generative AI and edited by The Korea Times.