SOMA represented a U.S.-based visual creative studio with a strong track record of working with global artists, successfully recovering in full - within two weeks and without initiating litigation - unpaid music video production fees and fees for planning a U.S.-based listening party from a Korean entertainment agency.
Although the client had successfully completed a U.S. project for a well-known K-pop idol group, the agency repeatedly delayed payment of the outstanding balance for several months following completion of the services, effectively refusing to perform its contractual obligations. In an effort to preserve the working relationship, the client extended the payment deadline multiple times in good faith. The company, however, continued to cite reasons such as “funding issues” and “internal approval delays,” eventually reaching a point where it was no longer possible to obtain even a clear confirmation of its intention to pay.
As a foreign entity, the client faced significant practical and psychological hurdles in pursuing litigation before the Korean courts. Against this backdrop, the entertainment company appeared to take advantage of this imbalance to prolong non-payment. The client ultimately began considering international litigation despite the anticipated cost and time involved.
While fully appreciating the client’s position, SOMA concluded that the priority in this matter was not prolonged dispute resolution, but swift and effective recovery.
A detailed review of the contract showed that a relatively high default interest rate applied to the outstanding amounts. SOMA used this provision as key leverage in negotiations. Rather than immediately filing a lawsuit, SOMA issued a robust demand letter on behalf of the client, clearly signaling that legal action was imminent. At the same time, SOMA made a strategic proposal: if the principal amount were paid in full within a specified deadline, a substantial portion of the accrued default interest would be reduced.
This approach made clear that immediate voluntary payment was the most cost-efficient option for the counterparty, while also delivering an unambiguous message that failure to comply would result in prompt legal action.
Shortly after the demand letter was sent, the entertainment company accepted SOMA’s proposal and paid the outstanding principal in full within two weeks of receipt of the demand letter. In addition to the principal, the client was able to recover default interest in an agreed amount, thereby minimizing its overall financial loss.
This matter demonstrates how cross-border disputes arising from transactions with Korean counterparties can be resolved efficiently through the strategic intervention of local counsel, without resorting to unnecessary litigation.
SOMA once again proved that complex lawsuits are not always the only solution, and reaffirmed its role as a trusted partner in protecting the rights of international clients in Korea in the most prompt and practical manner.
Although the client had successfully completed a U.S. project for a well-known K-pop idol group, the agency repeatedly delayed payment of the outstanding balance for several months following completion of the services, effectively refusing to perform its contractual obligations. In an effort to preserve the working relationship, the client extended the payment deadline multiple times in good faith. The company, however, continued to cite reasons such as “funding issues” and “internal approval delays,” eventually reaching a point where it was no longer possible to obtain even a clear confirmation of its intention to pay.
As a foreign entity, the client faced significant practical and psychological hurdles in pursuing litigation before the Korean courts. Against this backdrop, the entertainment company appeared to take advantage of this imbalance to prolong non-payment. The client ultimately began considering international litigation despite the anticipated cost and time involved.
While fully appreciating the client’s position, SOMA concluded that the priority in this matter was not prolonged dispute resolution, but swift and effective recovery.
A detailed review of the contract showed that a relatively high default interest rate applied to the outstanding amounts. SOMA used this provision as key leverage in negotiations. Rather than immediately filing a lawsuit, SOMA issued a robust demand letter on behalf of the client, clearly signaling that legal action was imminent. At the same time, SOMA made a strategic proposal: if the principal amount were paid in full within a specified deadline, a substantial portion of the accrued default interest would be reduced.
This approach made clear that immediate voluntary payment was the most cost-efficient option for the counterparty, while also delivering an unambiguous message that failure to comply would result in prompt legal action.
Shortly after the demand letter was sent, the entertainment company accepted SOMA’s proposal and paid the outstanding principal in full within two weeks of receipt of the demand letter. In addition to the principal, the client was able to recover default interest in an agreed amount, thereby minimizing its overall financial loss.
This matter demonstrates how cross-border disputes arising from transactions with Korean counterparties can be resolved efficiently through the strategic intervention of local counsel, without resorting to unnecessary litigation.
SOMA once again proved that complex lawsuits are not always the only solution, and reaffirmed its role as a trusted partner in protecting the rights of international clients in Korea in the most prompt and practical manner.