Exclusive Contract

Through an exclusive contract, artists, YouTube creators, content producers, and others form a relationship of mutual cooperation with agencies, management companies, and the like, setting the distribution of revenue and the direction of the creator's career.

At this point, various disputes may arise due to differences in the conditions of the contract, the course of performance, and the interpretation of rights and obligations.

∙ Termination and Breach of Contract

In an exclusive contract, a legal dispute may arise if one party unilaterally terminates the contract or fails to perform its terms.

Conflict may arise if there are no clear provisions on the conditions for or grounds of termination.

∙ Contract Term and Payment

If differences arise over the term of the exclusive contract or the conditions of payment, a corresponding legal dispute may follow.

For example, disputes often arise where no agreement is reached on the timing of payment or where settlement amounts go unpaid.

∙ Image Rights and Commercial Rights

If the rights to an entertainer's or artist's image or commercial activities are not clearly defined, a dispute may arise over the authority to use the image.

Complaints are often raised about uses beyond the scope specified in the contract.

∙ Non-Competition Clauses

A non-competition clause refers to a contractual provision that prohibits an artist or similar party bound by an exclusive contract from working for a competing company within a specific region or period.


If a non-competition clause included in an exclusive contract is overly broad or unfair, a legal controversy may arise over it.

If the non-competition period or scope is excessive, questions may be raised about its legal validity.

∙ Renewal and Extension of Contract

A dispute may arise over renewal after the contract ends.

If the conditions for extending the contract are unclear, a dispute is more likely to occur due to a conflict of interests between the parties.

∙ Unfair Contracts

If there were unfair conditions among the terms of an exclusive contract, artists, entertainers, YouTube creators, athletes, and others may be forced into unreasonable schedules or may fail to have their rights protected.

In addition, a legal dispute may arise where free activity is impossible due to unfair revenue distribution or an excessive contract term, or where the party is not fairly compensated.

To prevent this, it is advisable to obtain the assistance of a legal professional to check whether there are clauses disadvantageous to the creator in the relationship with the agency.

It is also recommended to clearly define each party's rights and obligations by carrying out the contract through a legal review.

▶Enter Into the Contract Using a Standard Contract Form or Industry Recommendation

Remove unfair elements by referring to the standard exclusive contract forms presented by the Ministry of Culture, Sports and Tourism and the Fair Trade Commission.

▶Clarify the Settlement Structure and the Obligation to Provide Records

Ensure transparent accounting management by setting out in detail the "settlement date," "settlement items," "method of providing records," and the like in the contract.

▶Design the Contract Term and Grounds for Termination in a Balanced Way

In the case of a long-term contract, prevent the abuse of rights by one party by inserting a midterm review clause or a conditional termination clause.

▶Provide Clauses to Prevent Double Contracts and Penalty Clauses

Effective response measures, such as claims for damages or suspension of activity, should be specified in the event that the party enters into a contract with a third party.

▶Provide Parental Consent Forms and Educational Safeguards When Contracting with a Minor

Beyond the consent of a legal representative, a separate clause is needed that also guarantees psychological protection and freedom in choosing a career path.

To respond in practical terms to matters related to exclusive contracts, entertainment and sports companies should establish a contract management system and prepare a preventive management framework and a dispute response manual that anticipate the possibility of a contracting party's departure and legal disputes.

For example, in preparation for problems that may arise during the performance of the contract, it is important to regularly retain related communication materials such as emails, meeting minutes, and messages, which serve as key evidence when a legal dispute arises.

In addition, during the contract term, regular activity reports and settlement meetings are needed to maintain the relationship of trust with the affiliated entertainer or athlete, and from six months before the contract ends, prior discussions on whether to renew the contract should begin, with a framework in place to promptly carry out follow-up measures if termination is chosen.

Going further, it is also essential to make an effort to monitor the constantly changing case law, recommendations of the Fair Trade Commission, and the like, and to reflect them in the existing exclusive contract framework.

In particular, attention should be paid to the "survey on unfair exclusive contracts" and "proposed revisions to standard contract forms" announced by relevant agencies such as the Fair Trade Commission and the Korea Communications Commission, and a proactive communication strategy should also be established, taking into account the possibility that the company may be exposed to social criticism if an issue related to an exclusive contract becomes a matter of public debate.

In this way, an exclusive contract goes beyond a simple employment contract and is a key agreement affecting the entire framework of brand image, business stability, and risk management, so risk analysis and the establishment of practical response measures through the assistance of professionals must be carried out in parallel at each stage before and after the contract is concluded.

Daeryun Law Firm has expertise in resolving a wide range of contract-related disputes, including those involving exclusive contracts.

Attorneys experienced in sports and entertainment matters provide assistance to prevent disputes over interests in advance by clearly specifying the relationships of rights.

In addition, working in close cooperation with in-house professionals such as industry-specific advisors, labor consultants, and tax accountants, they properly perform the role of representative in the contract negotiation process, including revising unfair or ambiguous clauses.

They also provide legal advice on overseas activities and contracts by drawing on a global network, including MOUs with overseas law firms.

If you need a review of an exclusive contract or the resolution of a legal dispute, please request a consultation with an entertainment attorney to entrust your case.