Jessica Jung, formerly of Girls’ Generation and now a soloist and fashion designer, was ordered to pay over ₩2 billion KRW ($1,655,210 USD) to her former Chinese entertainment agencies.
Jessica Jung lost both her first and second trials against the Beijing Arbitration Commission. These trials were conducted in Korea, and the reason the companies took her to court and wanted her to pay were for violating the exclusive authority of the contract, consultation fees, a penalty for breach of contract, and undivided profits.
Jessica’s Chinese agencies had control over managing her until February 28, 2019. One agency obtained the rights to manage Jessica’s entertainment activities in the China back on February 2016, through an agreement with her Korean agency, Coridel Entertainment. The second Chinese agency stepped into the picture due to a transfer of the rights of her management.
Nearly 2 years ago, on November 27, 2017, the Beijing Arbitration Commission ruled in favor of the agencies, who were seeking payment to cover the costs of exclusive licensing, return of her consultation fees, penalties, and other profits that were paid out to Jessica. They did this because they stated she did not carry out the duties of her contract.
Jessica argued that she did not violate any terms of the contract and did not agree to the arbitration’s decision. However, the Seoul Central District Court ruled in favor of the Beijing Arbitration Commission, stating that she was bound to the arbitration decision because the acceptance letter was issued de facto, or automatically. They also denied her appeal she filed on July 23, 2019.
Due to losing her appeal, she has been ordered to pay ₩2 billion KRW ($1,655,210 USD) to her former Chinese entertainment agencies to cover the damages and legal fees. Jessica has since submitted another appeal, this time to the Supreme Court.