Article: [Exclusive] "Was it her right or gapjil?"... Chuu, the whole story behind the 'LOONA' incident
Source: Dispatch
In Dec 2017, Chuu (Kim Ji-woo) wrote a handwritten letter. The recipient is 'Blockberry' Director B.
"Hello! Director B. This is LOONA's 10th member, Chuu, made my debut today, Dec 28th! Thank you so much. I'm so happy to be able to debut with such a good opportunity. It doesn't feel real yet."
Chuu put a PS at the end of the letter.
"Do you remember that day in 2016? I was very immature and lacking, but I worked hard (omitted)... Looking at it now, you never really know what can happen in the future..."
As Chuu said, people "really" never know can happen in the future.
In June 2022, Chuu sent this KakaoTalk to Director B.
Chuu: Over something like thisㅋㅋㅋㅋㅋㅋㅋ. All this over a 1-second leak??
Chuu: Should I care about this?
Chuu: I won't be participating on this album.
Chuu: Seriously, I'm not joking.
Chuu: Don't even dream of me appearing on Queendom or any similar show in the future.
Chuu: I guess no one else thinks they need to reflect on themselves.
Chuu: Before spoilers, do you realize other groups do fan signs or broadcasts?
Chuu: Are you not going to reply?
Chuu: Director-nim
Chuu: Answer.
Chuu: Answer.
Chuu: Are you going to come to your senses once I die and expose everything that's happened?
Director B: I'll check what's going on.
Chuu: Isn't this coming from you Director-nim?
Director B: No. I'm not the one that sent it.
In June 2022, Chuu sent katalks to Director B. She texted 12 times in one minute, non-stop.
"Aren't you going to reply? "I won't be participating in the album" and "Don't you dare dream of me appearing on Queendom." She then threatened the Director with "Answer" and "Answer" and "Are you going to come to your senses only when I die?"
Why was Chuu so angry? The "1-second leak" was the issue.
On June 9th, Chuu leaked their new song choreography during a live broadcast.
CEO A texted Chuu's mother and said, "The point choreography shouldn't be known yet, what are we going to do now?" Her mother captured the text and forwarded it to Chuu. In response, Chuu got upset and questioned the head of the company and said, "Find out who sent that text?!"
The first words out of her mouth were "Over thisㅋㅋㅋㅋㅋㅋㅋ. All this over a 1-second leak..?"
Chuu's anger did not stop.
Chuu: Be careful. Really. This is my last warning.
Chuu: Tell CEO A, as it is.
Director B: I'll warn the internal staff one more time.
Chuu: You!~~~~You guys are seriously stupidㅋ
Chuu: Let me know who sent it.
Chuu: That text ㅋㅋㅋㅋㅋ it's not even funny.
Director B: Looking at this, it seems that CEO A told your mother.
Director B: Jiwoo-ya, I'll warn the internal staff once more so that you won't get stressed over this again.
Director B: Sorry for making you feel uncomfortable. I'll apologize on his behalf.
Chuu: Please forward my Katalk exactly as is. Before I drop out of this album!
Director B: Yes. I'll pass it on.
Chuu: [sarcastic tone] Must be hard having to work with CEO A.
Director B: No worries. Take care of your meals and cheer up.
She continued with her intense remarks such as "Tell him like it is!" and "Be careful, really", "You're so stupid" and "It's not even funny."
She even showed hostility towards CEO A and instructed the Director to "forward the katalk exactly as is." Then sarcastically said, "It must be a lot of trouble working with CEO A."
In December 2017, Chuu was definitely a warm girl. However, five years later, she spat out harsh words towards the head of the company. What had happened in between? We tracked the conflict between Chuu and Blockberry.
◆ It was a tragedy from the beginning
Chuu wrote in her album handwritten letter (2017) sent to Director B, "I'm so happy to be able to debut with such a good opportunity."
The fact is, it really was a good opportunity to debut. 'LOONA' was a project that introduced a new girl (member) every month. It took about two years to gather the entire 12-member group. Chuu was definitely a huge beneficiary of the 'LOONA' system. Her trainee period was only about 3 months as she had joined the agency in September 2017. She joined the group as the 10th member in December.
In the 542 days to the full group debut, Blockberry released 12 solo albums and 3 unit albums for a total of 15 albums. They also shot music videos for each album. Almost 6 billion won was spent.
Thanks to that, Chuu was able to seize the chance to make a fast debut. Conversely, the company ran through its bank account balances in a short time. This was the beginning of the tragedy.
◆ Blockberry, the boomerang of tricks
December 4, 2017. Chuu signed an exclusive contract with Blockberry.
Article 7 (Distribution of Profits, etc.)
- A (Blockberry) and B (Chuu) first distribute the income generated from all entertainment activities in the ratio of A (70) to B (30).
- After that, the expenses required for all entertainment activities for B are settled at a rate of A (50) and B (50).
Clearly, this is a problematic contract. The revenue and expense settlement ratios are different. In other words, revenue is split 7:3 and costs are split 5:5 . As a rule, costs should also be divided 7:3.
Moreover, Blockberry chose the post-settlement system. Divide the revenue first, then subtract the cost. This is another 'trick.' It is like passing 20% of the cost that Blockberry should have borne to Chuu.
Blockberry poured a huge amount of money to launch 'LOONA'. It was such a risky project. From the company's point of view (for now), it was important to endure. As a result, the cost processing method (7:3 -> 5:5) was changed irregularly.
But the 'trick' contract eventually became a boomerang. It returned as the cause for a termination lawsuit.
◆ A and B's positions reverse
In January 2022, Chuu's time began. An application for an injunction to suspend the validity of the exclusive contract was filed. And in March, the court sided with Chuu. For those reading, this was the stepping stone. The one with the upper hand changed from A (Blockberry) to B (Chuu).
The one with the urgency was Blockberry. Already, more than 15 billion won has been poured into 'LOONA.' In order to maintain the team, they had no choice but to hold onto Chuu. So the company proposed an ancillary agreement.
How did the positions of Blockberry (A) and Chuu (B) change?
Dispatch obtained their 'separation contract' that was drafted in April. This annex agreement took precedence (replaced/overrode) the original exclusive contract.
First off, the settlement ratio changed to (3:7). Blockberry now took 30% of the profits and Chuu got 70%. Blockberry was now to bear 50% of the costs if costs exceeded revenues.
It was also now possible for damages to be claimed. In the event of damage to either side, the injured party may demand 50 million won. A clause for 'immediate contract termination' was also included.
◆ Chuu, the right to not be active
Chuu also received a right not to participate in 'LOONA' activities.
"In order to guarantee Chuu's personal schedule, she has the right not to attend the following schedule during 'LOONA' activities.
The 'schedule' specified in the contract is as follows:
- Right not to attend schedules within 3 times a month of 'Loona' full group schedules.
- Right not to attend within 3 times a month any so-called 'Loona' album activities
Chuu also added, "For schedules that have not been discussed, B (Chuu)'s schedule takes precedence. If A (Blockberry) needs to inevitably change a schedule, the change can only be requested once."
Lastly, Blockberry transferred all Chuu-related schedules. They agreed to stamp Chuu's demands to "immediately transfer all outside proposals such as broadcasts and CFs, free-of-charge."
The 'separate' contract is valid through December 31, 2022.
◆ The 'separate' contract is activated.
May 25, 2022.
The day after 'Flip That' MV was filmed. Chuu's mother triggers Article 5, Paragraph 2 in a text:
Article 5 of the separate contract (other matters), paragraph 2.
"If you cause damage to the other party, you can compensate the other party for damages by 50 million won per case and terminate the contract immediately."
Chuu's mother: "This is stipulated in Article 5, Paragraph 2 of the separate contract. Despite several prior schedule consultations and requests for documents and texts, it's already May 25th and your company has unilaterally violated the contract, so please process the compensation."
Chuu's mother notified CEO A, "Compensate 50 million won."
Why was she angry?
Hints can be found in her comment, "It's already 25th." She claimed MV filming delay was the issue.
Below is a one-line summary:
① On May 24th, at 9:00 am, the MV filming for 'Flip That' began.
② The filming was delayed, and group dance scene (#16) scheduled for 11:00 PM was also pushed back.
③ Blockberry asked for understanding of about an hour (delay).
④ Chuu's mother charged 50 million won for the filming delay.
Chuu was scheduled to film a CF the next day, on the 25th. According to her mother, Chuu's personal schedule was disrupted by the MV filming delay. She immediately demanded damages from Blockberry.
◆ Chuu's schedule comes first
At 12:27 AM, a LOONA member called CEO A.
Member: "CEO-nim, this is C. Can we talk for a minute?"
CEO A: "Uh, C-ya."
Member: "Jiwoo said she's leaving now. It's a group dance but Jiwoo suddenly threatened to leave... it's a choreo for 12 but only 11 are going to do it. We just heard this out the blue. We're in a position where we just have to accept it so I'm calling because it doesn't make any sense."
CEO A: "Can you check how much is left in the entire schedule?"
Member: "We don't know that... Can I let you know through the manager?"
CEO A: Yes, yes.
At 12:35 am on May 25th, CEO A called Chuu's mother.
CEO A: "We're waiting to take your child to the set. I guess the group dance isn't over yet. Mother. I'm sorry but it's going to be delayed for about an hour so I called to see if you could wait."
CEO A: "I'm sure Jiwoo is in a difficult position right now. It's right before her shoot but it's a situation where 12 people have to dance together and Jiwoo said she's leaving all of a sudden... hello?"
Chuu's mother: "I'm listening."
CEO A: "I'm sure as her mother it was hard to travel to such a far place but it'll be just a short wait."
Chuu's mother: "Anyway, I get it."
CEO A: "Oh, then you can wait a little bit? I think it's going to be a tough situation if she's not able to participate in the group dance."
Chuu's mother: "Anyway, I see. ok."
◆ 'Group dance' exchanged for 50 million won
As soon as Chuu's mother hung up the phone, she texted CEO A.
She claimed the filming delay took a toll on Chuu's personal schedule set for the 25th, the next day.
Delay in filming is a breach of contract. In accordance with Article 5, Paragraph 2 of the separate contract, a claim for damages was activated.
Chuu's mother: "I'll wait but I'll charge you for breach of contract. It's a clause that your company put in and agreed to so please make sure to observe it."
CEO A: "If you're in a situation where you're claiming breach of contract then we'll end it after the last filming is concluded."
CEO A: "As soon as you confirm that it's ok, I will instruct the management team. Please give us your opinion. The members are also waiting, so please respond quickly."
CEO A called Chuu's mother again.
Chuu's mother: "Hello."
CEO A: "Are you available to talk?"
Chuu's mother: "I don't feel like talking on the phone right now. What did you write to me just now? If I'm going to charge you you're going to end it? When we have a CF schedule tomorrow..? Hang up because I don't want to talk right now."
Chuu's mother hung up the phone first.
It became CEO A's job to apologize, once again. He immediately sent an apology text via Katalk.
CEO A: "It's not that we're being inconsiderate of Jiwoo's situation. Please understand that it was an issue caused by delays on set. We're also sorry that we exceeded the time. We're very sorry for this situation that may have put a strain on Jiwoo's schedule on the 25th."
Chuu's mother: "Then you shouldn't text like that."
CEO A: "Nevertheless, please consider again if possible so that we can film until scene #19 together."
Filming resumed under the condition that Blockberry pays damages of 50 million won.
Fortunately, they were able to film the group dance scene (#16) and Chuu returned home around 3:00am. However, the #19 scene requested by CEO A was thrown out.
With the set fee, they had no choice but to throw it out.
◆ Was it Chuu's "gapjil"?
Chuu left LOONA. No, she was kicked out. The superficial reason was Chuu's "gapjil." Blockberry used the katalk conversations (2021.08-2022.07) between Chuu and staff as basis.
For example... December 28, 2021.
Director B: Jiwoo-ya. I received a report from the management team that you won't be participating in album activities for LOONA. Is that correct?"
Chuu: "I won't be participating."
Chuu: "I've never skipped a broadcast schedule ^^. There's not a single schedule I didn't do even after I said I won't be doing broadcasts."
Chuu: "Stop with the lies. There's nothing I haven't done. You guys don't even have the ability to get me on broadcasts so there's no justification why you can't leave me out the group schedule. So please, stop with making me out to look like the bad person."
Chuu: Seriously.. All you guys do is lie. Tsk.. Have a good rest ~
Chuu's words were harsh.
Director B was the person that personally casted Chuu in 2017 but Chuu showed zero respect. She called, not just Director B but CEO A and other staff in the company collectively as "you guys.."
◆ Was it Blockberry's incompetence?
Where did Chuu's distrust come from?
"No money ~ No stamp ~ No settlement documents ~ Blockberry is jjang! (omitted). You claimed you'd give it to me but looks like you wont."
December 30, 2021.
Chuu: Director-nim? My mother asked for my stamp.
Chuu: Is the company not even going to give me my stamp!?
Chuu: Are you ignoring my mother?
Chuu: You don't give me money~ You aren't giving me my stamp~ You didn't even give me detail documents on the settlement fee ~
Chuu: Blockberry is seriously jjang ~
Director B: I've never ignored your mother. I'll send a reply after I check with the company on the stamp issue.
Chuu: You said you'd give it to me, but it looks like you won't. Ohh
In the end, the starting point of the conflict was the "settlement."
No money, no documents.. From Chuu's point of view, it was all Blockberry.
◆ Was it Chuu's 'media play'?
'Chuu Daddy.' It's a term compounded from words, 'Chuu + Father'. It refers to Chuu as "breadwinner", earning money to feed 'LOONA'.
However, this is a misunderstood fact. LOONA is a personal settlement system. Chuu's money belongs only to Chuu and each member's money belongs directly to each member.
This is a text message shared between Chuu and CEO A on October 5, 2021.
Chuu: "CEO-nim, am I paying off the group's debt right now? Is that it?"
CEO A: "Of course not."
According to Blockberry's settlement data, LOONA earned 18.2 billion won between 2016 and Oct 2022 and spent 16.9 billion won (including direct costs). Sales were 18.2 billion and expenses were 16.9 billion.
According to their odd method of calculation, LOONA's share (30%) is 5.4 billion won. If you subtract the cost (50%) or 8.4 billion won, it's a minus -3 billion won. Dividing this by 12 people, each person has about 200 million won in debt.
However, Chuu's situation is different (from the rest of the members).
In December of last year, she turned her settlement into a '+'. In fact, in January, she received her first settlement of 70 million won. So far this year, she has received approx. 220 million won.
In addition, Chuu set up 'Chuu Co. Ltd' in April. After the court's injunction decision, she started her own independent activities. She took home 100% of the money earned from her personal schedules since April. Blockberry only earns money from 'LOONA' schedules.
◆ Blockberry's "excuse"
Dispatch secured transcripts and conversations between Chuu and CEO A, Chuu and Director B, Chuu's mother and CEO A and Chuu's mother and Director B. Through their texts and calls, we were able to comprehensively grasp what happened over the past year.
Blockberry took on a challenging and unaffordable project. They spent 17 billion won over a span of five years. They released 24 albums and filmed 44 MVs. It's also unusual for a company to release solo singles and MVs for 12 members.
Chuu was the beneficiary of this reckless attempt. Thanks to this, she was able to join the group after being a trainee for 3 months. Blockberry trained Chuu to be a strategic member so of course she was offered more opportunities. (Of course, Chuu also brought in benefits with the success.)
But Blockberry is also not without blame. The primary cause of this conflict is their "trick" on handling costs. If Blockberry had handled the expenses according to a standard contract, the issue of contract termination wouldn't have come out.
"It would've been difficult for the company to maintain a 50:50 cost ratio. At the time, we thought it was a way to save the company and the group so we explained it to the members and we all came to an agreement" - Blockberry
◆ Chuu takes the upper-hand, again
Blockberry provided their "excuse" and Chuu attacked their weakness. She gained the upper-hand (7:3) by renegotiating a 'separate' contract. Blockberry was reduced to a servant and Chuu (B) stood tall and became the one who made the decisions.
At least this year, Chuu (the individual) was higher than the group. She chose when to participate and made all the decisions. The conversations from the two sides is proof. Blockberry was now in a position where they have to follow all of Chuu's orders.
In the end, Blockberry was the first to cut ties. They figured it was no longer reasonable or possible to go further. Looking back, Chuu is the one that caused the break-up. You can get a glimpse of this from her complaints with Blockberry. The katalks alone serve as proof.
Dispatch had to meet Chuu. We needed to hear why she reversed positions and couldn't go back. Last week, we were able to get in touch with her through officials. She pointed out that the settlement issue was the first catalyst.
"At the time, I didn't even know what retroactive settlement was. I was just happy to be able to debut so I just signed. I never once realized that I wouldn't be able to be properly paid because of this (post-settlement) structure." - Chuu
◆ We listened to Chuu's "story"
Dispatch sent a questionnaire a week in advance. Chuu conveyed her position through her official rep. We have organized her replies through a Q&A format.
Dispatch: "You didn't realize there was a problem with the contract?"
Chuu: "Last year (2021), a member asked, "Isn't it time to get paid?" That's when I realized there was a problem. I heard the explanation at the time of the contract. However, I didn't fully understand the post-settlement system. I didn't even have time to look at it closely..."
Dispatch: "So why proceed with the contract termination lawsuit?"
Chuu: "I did the math. If expenses accounted for more than 70% of sales, the final settlement was 'minus'. It was a structure that the more I worked, the more the debt increased. It's a 7:3 contract, but it might as well have been 9:1 or 10:0. It's late, but I wanted to make it right."
(For example, let's say sales are 100,000 won and costs are 70,000 won. Company:Chuu ratio = 70,000 won:30,000 won. Subtract 35,000 won each on 5:5 cost ratio. The company's final profit is 35,000 won. Chuu's settlement is -5,000 won. Chuu pointed out this issue and moved on.)
Dispatch: "We heard Chuu settlements turned '+' in Jan 2022. You received more than 200 million won this year alone?"
Chuu: "That's right. It is a personal settlement system. I was able to receive settlements first because I had a lot of personal schedules. However, I don't know if the cost calculations were done correctly. I didn't receive the settlement basis data."
Dispatch: "Blockberry refuted it and said you demanded proper payments and they had to commission an audit by an external tax firm. They're arguing there's no issue with the cost calculations?"
Chuu: "I never requested an external audit. The company suddenly proceeded with one. It's not like they were 100% trustworthy either. The important thing is the settlement data wasn't sent properly. So that's why the trust was lost."
Dispatch: "In April 2022, the attached annex agreement was drafted and your revenue share increased to 70%. Did you lead the decision-making on this?
Chuu: "My trust in the company was practically over (last year). I didn't want to do 'Queendom' either. However, I didn't want to give up on LOONA. An annex agreement was written so that I could continue with group activities."
Dispatch: "But you prioritized your solo schedules over the group's activities? There was a quite a bit of commotion on the MV set."
Chuu: "The MV filming got delayed so of course I demanded 50 million won in damages. However, there have been other instances where I didn't request damages. There have already been problems with scheduling several times. That's why I charged it this time as a warning."
Dispatch: "We checked katalks and emails between the two sides. It's almost like Blockberry always had to ask permission."
Chuu: "It's true they had to ask if I could attend schedules. However, there are some parts that were not conveyed properly."
(Blockberry flatly denied this part. They said they delivered all schedules officially inquired to the company.)
Dispatch: "But aside from this, the words from you and your mother were quite a bit harsh. The company seems to have interpreted it as "gapjil."
Chuu: "Director B was the only (company) person I could communicate with. It wasn't that I was angry with B, I was just angry at how the company was being run. But Director D..."
Dispatch: "Director D?"
(Chuu shared a meeting transcript with Director D from a rate adjustment conversation in Nov 2021.)
Director D: "Like I said, think through it carefully. This won't hurt you. For now, there's no need to rewrite the contract. The mistrust issue can be dispelled.
Director D: But I get it. I understand your text. We promised a 5:5 split. So now... it's 7:3 and 5:5.
Director D: "Let's just look at the math. The cost ratio is now 5:5."
Director D: You went to elementary right? haha. You did finish, right?
Chuu: "What are you talking about? I'm thinking."
Director D: "It's a joke. It wasn't meant to hurt your feelings."
Chuu: "I don't think we're in the kind of relationship to joke around."
[Back to Q&A]
Dispatch: "Did this conversation that day affect your attitude?"
Chuu: "Director D treated me like a child. How would you feel if you were looked down on and ignored? I was hurt and in a state of distrust. I felt I had to strongly speak up to be listened to. That's why I spoke with strong words. I made a mistake like any other human being. I couldn't help it."
It's totally understandably that Chuu could be fed up with the situation. She didn't insult anyone, she only talked seriously. Chuu is human and has emotions, so I can't blame her for talking serious.
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