[Press Statement] United Asia Management and KMP Holdings are Cartels that Call for State Correction

Official Press Statement of the International Consumers of the Korean Wave and Supporters of JYJ regarding United Asia Management and KMP Holdings as Cartels that Call for State Correction

 

The recently formed United Asia Management (hereafter, “UAM”) and its spiritual predecessor KMP Holdings are cartels. The International Consumers of the Korean Wave and Supporters of JYJ hereby alert the State actors of the Korean Government of these two open and high-profile disregard of the Korean laws and international standards of competition and urge swift action.

A cartel is “an agreement between businesses not to compete with each other.”[i] There is international consensus on the basic statutory elements of a cartel: an (1) agreement (2) between competitors (3) that restrict competition. UAM and KMP Holdings squarely meet the above definition. First, the agreement exists because the very structure of these transactions as understood by all parties, which bring direct competitors together to cooperate in capturing the common market, makes the restriction of competition inevitable. Indeed, an agreement need not be formal or written to be prosecuted, and is actually almost always tacit and not openly acknowledged. Second, the companies that make up UAM and KMP Holdings are clearly in direct competition. Third, aside from the structural restriction on competition discussed above, the open, publicized aims of these two ventures proclaim that they shall engage in at least one of the four categories of conduct of a “hard core cartel”: “to share or divide markets by allocating customers, suppliers, territories, or lines of commerce.” [ii] The unpublicized aims of these companies may meet other categories, i.e., price-fixing, output restriction, and bid-rigging.

To prevent the formation of cartels, the OECD, of which Korea is a member State, recommends that enterprises refrain from engaging in mergers, takeovers, joint ventures or other acquisition of control whether of a horizontal, vertical, or a conglomerate nature. Further, the UN, of which Korea is again a member State, enumerates as priorities for all nations “the creation, encouragement and protection of competition” which cartels by definition stymie. Additionally, Korea’s own Monopoly Regulation and Fair Trade Act (hereafter, “KMRFTA”) purports “to encourage fair and free economic competition by prohibiting the abuse of market-dominant positions and the excessive concentration of economic power.” In the EU, a firm with a market share of as low as 39% can be considered “dominant”. Both UAM and KMP Holdings far exceed that percentage and approach or exceed double that amount. These companies, along with the Korean Government, have an obligation to the Korean public and the international community to stop these public and gross violations of existing norms at once.

Cartels cause serious harm to society and the industry. As Korea recognizes through KMRFTA, the restriction of competition by cartels hinder “the creativity in business activities, the protection of consumers, and the promotion of the balanced development of the national economy.” Accordingly, cartels are vigorously prosecuted in all countries that place a high value on market competition. In fact, the Justice Department of the United States of America, the nation-leader of free market, states that “because of the harm that cartel violations cause, [our] number one antitrust priority is criminal prosecution of those activities.”[iii]

As the ultimate arbiters of the success or failure of Hallyu, we the international consumers have been deeply concerned with the damage caused by cartels in the Korean Entertainment industry over the years. We have already witnessed the degradation in quality of Hallyu products, in particular in the lack of choice and diminishing innovation in the Korean pop music industry, driven by the saturation of “idols” and the unchecked practice of slave contracts brought about by the lack of competition. We have also witnessed a disconcerting lack of transparency and fairness in Korea’s popular media, which breeds mistrust in both Korean and International consumers. That Korea’s big entertainment companies and mainstream broadcasting stations collude to allocate consumers amongst themselves and to limit access to the market for other players at the expense of consumer freedom of choice has been obvious for years to all serious consumers of Korean Wave.

We are also deeply concerned about the harm that cartels like UAM and KMP Holdings inflict on the intellectual property rights protection of Korean artists, and ultimately, on their creativity and development which drive the progress of the Korean Wave. The lack of competition allows Korean entertainment companies to include provisions that violate basic norms of intellectual property rights protection in their standard contracts with their entertainers. The lack of competition also prevents the formation of organisations that represent the interests of entertainers’ basic rights. This is unacceptable given that Korea has ratified the key international instruments in this area and that she is a member State of the International Labour Organisation. The restriction on competition by cartels like UAM and KMP Holdings only aggravate the exploitation of the creativity of Korea’s artists and make consumers accomplices in a pattern that will ultimately destroy Hallyu. We refuse to either endorse or become complicit in such an arrangement.

Therefore, we ask the Government of the Republic of Korea to correct this unfortunate state of affairs at once by taking action against UAM and KMP Holdings. UAM and KMP Holdings openly and unashamedly restrict competition and violate Korea’s laws and the international standards she values. Such acts have, and will continue to, stall and even regress the Korean Wave for the sake of profits by the few dominant established players. We advise the participants of cartels and the Republic of Korea: Korea must prove that she satisfies basic international standards of competition and free market and therefore earnestly protects the rights of vulnerable actors and consumers before even dreaming of being taken seriously in the international market.


[i] United Kingdom’s Office of Fair Trading website

[ii] In 1998, the OECD Council adopted the Recommendation Concerning Effective Action Against Hard Core Cartels (hereinafter “the Recommendation” or “the OECD Recommendation.”)

[iii] United States Department of Justice, Antitrust Division, Antitrust Enforcement and the Consumer

Shared by: TheJYJFiles

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54 thoughts on “[Press Statement] United Asia Management and KMP Holdings are Cartels that Call for State Correction

  1. That is…beautiful. Beauty with footnotes. I feel so lucky to have found this corner of fandom.

    Thank you for representing our views in such an intelligent and elegant manner.

  2. Perfect! Can we tweet this to Mr./Atty. “forgot his name but he’s so supportive of JYJ” so he can send the message to the public? LOL
    I ‘m sorry, I really forgot his name… Anyone in the family who’s following him on twitter?

    • Park Chan Jong?

      Yes, I believe he does have Twitter. Do tweet this around, since this will appear on the Naver twitter feed under “JYJ” and generate buzz that way.

  3. Bravo! (I’m guessing this was authored by the Fabulous Jimmie) it has that level of perfection about it. 🙂

    To whom is this Statement being sent? I wonder if it would be effective to send to the Koran Consulate in America as well. They are trying to push the trade agreement (granted it’s based on beef and auto trade) but some of us know that the Hallyu Wave is a huge commodity as well.

    In any case….beautifully written, I hope it reaches the *right* ears.

    • Not just me…the American Law School Student was also involved. I can’t take all the credit ^^.

      In any case, I think it is a good idea to send this to the Korean Consulate. That is another avenue to the Korean Government after all.

  4. Dear all,

    I have already sent the above statement to various Korean Government ministries who would handle some aspect of other of Hallyu–the Ministry of Culture, Sports and Tourism, the Ministry of Labour and Employment, the Korean Intellectual Property Agency, the Fair Trade Commission, etc. So, the message has reached the ears of those in power to make the big decisions.

    I am also pushing this to every Korean media outlet I know. It will take a lot of work in this area due to the length of the statement but also the influence of SM and other UAM companies in Korean entertainment media. But don’t worry….I’ve already committed myself to not give up until this message gets to those who matter.

    What would be of immense help to us and JYJ is if individuals with platforms of mass communications (blogs, websites, micro-blogs, etc) also disseminated this across the Internet…perhaps even tip the big Kpop sites about this. If enough buzz is generated this way, Korean news might report it, even if they don’t have the guts to take the statement from the email I send them.

    Cheers!

    • THANK U Jimmie, what would we have done without U!! i am sooo glad ur in our JYJ FAMILY!!! U R a blessing to us!!! thanks to U and ur colleague, we really feel HOPE for our beloved JYJ, our Honorary Ambassadors!!! ^_~

      • GOD BLESS U JIMMIE AND JYJ AND ALL OF US!!!

        JYJ FIGHTING!!! JYJ FAMILY FIGHTING!!!

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  7. JYJFiles I LOVE YOU!. You said everything that I’ve been wanting to say but put it in better worlds with facts that back up it!

  8. Thanks so much Jimmie! You are awesome! I want to study economy you know. So I read about this before. As far as I know the cartels are illegal in a lot of countries. It does affect not only the small companies but, in this case, also the costumers and the talented people that could not shine or have a opportunity to do so.

    But, thanks God, the collusions usually don’t work. Why? Well, each company has its own interests and they care about their own interests the most. At the end the uncertainty of being betrayed, because they don´t know if the other companies are following the agreement, makes them betray each other and the collusion ends.

    These companies are all a bunch of greedy people. They will be ones who will destroy themselves. There is no way this works. They have their own idols; they want to earn the most amount of money.

    The Game Theory explains it better ^^
    http://en.wikipedia.org/wiki/Tacit_collusion

  9. Hi Jimmie: I really thankful your time Mahalo nui loa hawaiian style.
    We don’t know how long takes time but we’ll be support JYJ. anyway take care, Ty

  10. Thank you so much for your effort and dedication.
    JYJ fandom is most grateful to have you with us.
    May the Force be with us!

    first time commenting here…
    i feel so serious. 😀

    Jimmie Fighting!
    JYJ Fighting!
    JYJ Family Fighting!

  11. Thank you so much for your hardwork Jimmie. You make me feel proud and embarrassed that I can only post a comment thanking you but can’t do anything else for JYJ.
    I hope your hardwork will be paid off and it would make a difference for JYJ and K entertainment industry.

  12. Please tell us if there’s anything we can do. We want to help. Monopoly is never a good thing. That’s why Microsoft sued for it and American government refuse merger/collaboration between Google and Yahoo by applying antitrust law (if I’m not mistaken). Cause it would make a monopoly in internet.

    Hope we can also do something. This is not only for JYJ, but for Korea Entertainment Industry.

  13. jimmie, i almost get tears in my eyes reading this ! thank you so much ! i really hope and pray that someday JYJ will personally thank you for everything you’ve done !
    thank you again, for you and everybody who helps you !

  14. Pingback: TVXQFAN Turkish Cassiopeia » Basın Açıklması: United Asia Management ve KMP Karteldirler

  15. Great piece. But I’ve got a concern that’s unrelated to the cartel in Korea. Current ‘movement’ in the fandom has brought Avex back into my periphery. There’s somethin I don’t understand, why does Avex keep claiming that CEO Paek of Cjes is a criminal? On what grounds is this based on? Was he ever prosecuted or was it a matter that he’s been in court on accusation but later released?

    • Irony is, Avex is doing the very same thing now that it accused CEO Baek of doing and being at one time prosecuted for…it is basically threatening to reveal certain information about a celebrity in order to use it as blackmail.

      First of all, I do not know how true this accusation is, and second…Hoho, Avex is one to talk! Who right now is trying to use “secret information” to blackmail a singing group?

      Regardless of what happened in Baek’s past, the criminal in the current saga is clearly Avex.

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  18. The minute I read the title of the article, immediately I think of Jimmie! (Who else?) Thank you for your hard work, Thank you for being with us & Thank God for sending you to us.

  19. Pingback: 19/4/11 Declaracion de prensa: JYJ | OurJYJ

  20. Hi All.
    It is blaringly apparent that all of this points to manipulation of the market and of controlling opportunities for certain groups and smaller companies. Timing is critical. Thank you, Jimmie for the hard work that you do, and the willingness to collaborate with others to benefit JYJ and others who have or will have limitations placed upon their activities. The methods used by these cartels are old school and out-of-place in this modern world. I am posting this on http://www.jyjfantalk.com. Momma Cha

  21. Pingback: Official Press Statement of the International Consumers of the Korean Wave and Supporters of JYJ regarding United Asia Management and KMP Holdings as Cartels that Call for State Correction | DBSKALWAYS

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  27. Pingback: Communiqué de presse officiel des consommateurs de la vague coréenne et les supporteurs de JYJ font appel à l’État de correction consernant UAM et KMP Holding! « OT5 & Cassiopeia, Bi£nvenue~♥

  28. Pingback: [SHARING] Official Press Statement of the International Consumers of the Korean Wave and Supporters of JYJ regarding United Asia Management and KMP Holdings as Cartels that Call for State Correction « iXiahCassie

  29. Pingback: [SHARING] Official Press Statement of the International Consumers of the Korean Wave and Supporters of JYJ regarding United Asia Management and KMP Holdings as Cartels that Call for State Correction « iXiahCassie

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    • That was a very interesting article. I had always wondered what had really happened behind the scenes in the case of the internet broadcasting station. Didn’t know about the fan hacking into Helena’s private account. Interesting that the article traces the break up of the station to the conflict within the JYJ fandom, between the younger and older generation fans. It’s a very touchy issue, I don’t know what to think. It seems to me that both parties were at fault.
      “Before IBS’s opening, Helena said: ‘We wait for the day when IBS disappears because JYJ is free to appear on television.’ But in the end, IBS disappeared, and JYJ was still banished from television.”
      Just came after reading about Yunho and Changmin’s performance of ‘Rising Sun’ on Music Bank and this article made me think of what could have been if the IBS had worked.
      Obviously, we don’t know the whole story, but definitely there was more to it than meets the eye. Thank you kktt.

  34. I repeat ad nauseam ….. Jimmie, you are the best thing that has happened to JYJ and to the JYJ fandom.

    We thank you. And as what ka-vie says, I hope JYJ thank you one day.

    Clearly, you are a godsend. It is comforting to fans that we find in you an intelligent fan championing for what really matters to JYJ. God bless you for what you represent.

  35. Everyone, let’s send this message to (everyone who maybe able to do something about it). Everyone, let’s fighting together. JYJ fighting, fans fighting ^^

    Alone we can not do many things, but together we can make a miracle.

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