The Seoul Central District Court ruled on January 20, 2026, that entertainment agency keyeast must pay 880 million won approximately $640,000 in damages to a former trainee who alleged unfair contract terms, excessive training fees, and withheld earnings during her time with the company. The civil judgment found liable for breaching fiduciary duties and violating provisions of the Popular Culture and Arts Industry Development Act that protect trainees and artists from exploitative practices.
The plaintiff, who trained under KeyEast from 2018 to 2021 before debuting with another agency, claimed the company imposed unreasonable penalties, deducted excessive management fees sometimes over 70% of earnings, and failed to provide transparent accounting. The court agreed that several contract clauses were unconscionable and that KeyEast did not adequately protect the trainee’s rights during her formative years.
KeyEast, a subsidiary of SM Entertainment and home to high-profile actors including Kim Soo-hyun and Han So-hee, stated it respects the court’s decision and will review an appeal. The company emphasized its commitment to fair treatment of trainees and artists but noted that trainee contracts often involve significant upfront investment in training and living expenses.
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