Rapper Sleepy's former agency, TS Entertainment, plans to appeal the court's ruling in his favor.
On the morning of the 11th, TS Entertainment announced, "We want to explain our client's appeal regarding the damages ruling from the 21st of last month. The second trial aimed to prove that the termination of the exclusive management contract between TS Entertainment and Sleepy (real name Kim Seong-won) in 2019 was caused by Sleepy."
TS Entertainment claims that during his contract, Sleepy tricked the company and made unfair profits through hidden ads and unauthorized events on social media. They also allege he spread false information and turned public opinion against the company through various media. The second trial was the first time the court legally recognized that Sleepy had caused damage to the company over the years.
On the 21st of last month, the Seoul High Court's Civil Division 15 ruled in favor of Sleepy, just like the first trial. The court said, "The defendant's appearance fees were received after the termination of the exclusive contract and are not subject to distribution. The claim for damages due to breach of contract and the termination of the exclusive contract was dismissed because the termination was based on the court's mediation."
In 2019, TS Entertainment filed a lawsuit claiming Sleepy hid part of his broadcasting fees and advertising revenue from social media promotions, demanding 280 million KRW. However, they lost the first trial in 2021. Sleepy countered with a damages lawsuit, claiming unpaid contract fees and unsettled broadcasting fees, and in 2022, the first trial ordered TS Entertainment to pay Sleepy 200 million KRW.
TS Entertainment stated, "The initial mediation for the termination of the exclusive contract was not due to a smooth settlement but due to a breakdown of trust, leading to the termination. The second trial court misinterpreted the mediation, ruling that there would be no financial compensation because the situation was resolved through mediation. We believe this interpretation is incorrect, which is why we are appealing this ruling."
TS Entertainment also plans to file criminal charges against Sleepy concerning the hidden ads, unauthorized social media promotions, and unauthorized events.
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