JYP founder pushes back against parliamentary scrutiny over 'Fanomenon,' cites 'sacrifice' by K-pop agencies

Singer Park Jin-young, founder of JYP Entertainment, defended the new government-backed awards show titled “Fanomenon” as a major financial sacrifice by K-pop’s four largest agencies, in response to parliamentary scrutiny over whether the companies had received preferential treatment.

“It’s a project built on years of sacrifice from the four K-pop agencies,” Park said during a National Assembly audit held in western Seoul on Wednesday.

Park voluntarily attended the annual parliamentary audit of the Ministry of Culture, Sports and Tourism as the co-chair of the Presidential Committee on Popular Culture Exchange.

Park was appointed to lead the presidential committee along with Culture Minister Chae Hwi-young in September last year, becoming the first singer to hold a ministerial level government position.

Since then, he has been helming the ambitious Fanomenon project to launch a new government-backed award ceremony and concert, jointly organized by Korea's four major K-pop agencies: HYBE, JYP Entertainment, SM Entertainment and YG Entertainment.

The four agencies launched a joint venture, each holding an equal stake in the entity, to operate the Fanomenon project. Fanomenon will start with an annual awards show combined with a concert series and exhibition, set for December next year.

Rep. Bae Hyun-jin of the opposition People Power Party (PPP), who sits on the National Assembly's Culture, Sports and Tourism Committee, questioned how the project was being run and whether the four agencies had received preferential treatment.

“A government project would usually select an operator after issuing a public notice and assessing applicants’ capabilities,” Bae said. “Isn’t this preferential treatment for the four most influential companies in the industry from the beginning?”

Park said participating would require the companies to make financial sacrifices, as they would have to forgo other performances to attend the inaugural awards show in Seoul and Gyeonggi in December next year.

“If the four major agencies did not participate in Fanomenon and instead staged other performances, they could make two or three times as much money,” Park said.

“This will cost the agencies tens of billions of won, but the companies all agreed to join the project for its long-term vision and spillover effects in Korea.”

Bae also questioned why the trademark for “Fanomenon” had been registered by JYP Entertainment rather than by the joint venture or presidential committee. A contract to transfer trademark rights to the government and joint venture currently covers only domestic rights, excluding overseas rights for now.

Park and Chae said the trademark rights would eventually be transferred to the joint venture and committee, as JYP had to register the trademark to prevent someone from securing it first with malicious intent.

Asked by Rep. Choi Min-hee of the ruling Democratic Party (DP) whether he had benefited from his position or the trademark, Park said, “I have spent a lot [of my own money].”

“I’m not sure how much revenue the trademark will generate, but the money would not benefit our company,” he added.

Chae acknowledged problems with the project’s operational details, attributing them to Fanomenon being the first initiative of its kind. He asked lawmakers to consider its unusual circumstance.

“The four agencies did not participate in the project to pursue financial benefits; the aim is for the four companies to create something that extends the momentum to other areas,” Chae said.

PPP Rep. Kim Seung-soo also addressed the speculations of whether Fanomenon was intended to boost the popularity of President Lee Jae Myung and the DP.

“Even if someone above the president came to me, I would never do it if I thought it wasn’t right,” Park said. “If Fanomenon succeeds, it will be really good for the country.”

Before lawmakers began questioning him, Park presented the committee’s agenda and projects.

“While K-pop gained popularity around the world, the four K-pop companies and I came to think that we had reached a limit,” he said. “So, as we were considering how to make the leap to the next stage and build a system, the government made a proposal, and we came to work together.”

He acknowledged that the committee has been going through “a great deal of trial and error over how the private and public sectors can cooperate,” but added, “I will do my best to make this a good example of the private and public sectors working together.”

Other issues raised during the audit included the ongoing controversy over the film “The Assassin(s).” PPP lawmakers argued that the film distorted historical facts and demanded that its filmmakers and related stakeholders be summoned to the audit. DP lawmakers defended freedom of expression, arguing that compelling the filmmakers to testify would place undue pressure on creators.

BY SHIN HA-NEE [[email protected]]