MPMG, a South Korean music and entertainment company, has filed a formal complaint with the Fair Trade Commission against media giant CJ ENM and its cable network Mnet, alleging unfair business practices related to the 2022 band competition show "Great Seoul Invasion." The company claims it shouldered the entire production cost of over 5 billion won ($3.7 million) while Mnet retained all intellectual property rights without contributing any funding to the project.
During a press conference held at MPMG's Seoul headquarters on Wednesday, producer Lee Jong-hyun and attorney Kim Jong-hee revealed details of what they described as exploitative business practices. Lee explained that while MPMG initially expected to co-produce the program with CJ ENM, the arrangement was unilaterally changed to a sponsorship contract that left his company bearing all financial responsibilities. "This was a 100 percent privately funded project," Lee stated, adding that MPMG covered not only production costs but also marketing expenses and a post-show concert.
The producer alleged that the contractual arrangement was deliberately structured to benefit Mnet at MPMG's expense. "We invested over 5 billion won 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 said. He further claimed that Mnet failed to honor key commitments, including providing adequate support to participating artists, and maintained virtually no communication with MPMG throughout the production process.
Lee characterized the situation as an unprecedented abuse of corporate power, stating, "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." The company decided to go public with these allegations three years after the program concluded to prevent similar incidents from occurring in the future.
Attorney Kim Jong-hee described the case as a clear example of structural inequality in the entertainment industry, where dominant broadcasters exploit smaller production partners. "The agreement that was supposed to be a co-production was unilaterally changed to a sponsorship contract," Kim explained. "MPMG's input was disregarded during the contract process," he added, emphasizing how the power imbalance allowed the larger corporation to dictate terms unfavorable to the smaller company.
MPMG is now demanding several remedies from CJ ENM, including a comprehensive explanation of whether company executives were aware of the allegedly unfair practices. "We've organized all related evidence," Lee announced. "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." The company is also seeking financial compensation for its losses and an official apology.
CJ ENM has strongly disputed MPMG's allegations, characterizing them as one-sided and factually inaccurate. In a statement provided to Hankook Ilbo, the company defended its handling of the project, saying, "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 media conglomerate further defended its role in the production, stating, "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." CJ ENM indicated it would take an aggressive stance against what it views as unfounded accusations, declaring, "We will take all necessary measures, including legal action, based on facts and contractual evidence." The dispute highlights ongoing tensions in South Korea's entertainment industry regarding fair business practices and the treatment of smaller production companies by major broadcasters.
