Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2019
Alleged royalty diversion by former executives
Three former company executives were charged over allegations that 18.2 billion won in royalties associated with Melon, artists, and producers had been stolen or misappropriated.
2019
Kakao M responds to unauthorized resale of IU concert invitation tickets
Company response
Kakao M, IU's agency, apologized after complimentary invitation tickets for an IU concert were sold to fans outside the agency's premises. The agency stated that it would work to prevent similar issues and would update fans following its investigation. The incident concerned the unauthorized resale of invitation tickets that had been provided as complimentary invitations.
Kakao M, IU’s agency, apologized after complimentary invitation tickets for IU’s concert were sold to fans outside the agency’s premises. The agency said it would work to prevent similar issues and would update fans after its investigation.
Stated objective. The agency said it would prevent similar issues in the future.
Company response
Apology — Kakao M
We deeply apologize for this incident.
Investigation — Kakao M
We will keep you updated as soon as we finish investigating the incident.
Source excerpt
We will keep you updated as soon as we finish investigating the incident.
We deeply apologize for this incident.
Kakao M, IU's agency, has released an official statement regarding the fraudulent activities that occurred at the singer/actress's concert.
2016
Supreme Court price-collusion ruling
The Supreme Court of Korea imposed fines on LOEN and KT Music, with a separate penalty involving executive Shin Won-soo, in litigation concerning alleged digital-music price collusion. The Supreme Court of Korea imposed a 100 million won fine each on LOEN Entertainment and Genie Music, then known as KT Music, in a price-fixing case dating back to a 2008 filing. Former co-CEO Shin Won-soo was also ordered to pay 10 million won.
2011
Digital music price-fixing case
LOEN and its then-parent SK Telecom were among companies fined and sued by South Korean competition authorities in connection with alleged price rigging in the music market. The referenced material reports a fine of $9.6 million for the company's role. LOEN Entertainment and its then-parent SK Telecom were among companies fined and sued by South Korea’s Fair Trade Commission in a case concerning alleged price rigging in the music market. The referenced material reports a fine of $9.6 million for the company’s role.