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Blockberry Creative

Blockberry Creative was a South Korean and entertainment agency established in 2016 as a subsidiary of , primarily known for managing the LOONA and the solo artist . The company debuted in 2018 through an unconventional pre-debut strategy that released individual singles for each of its twelve members over the prior year, followed by subunit promotions, which generated significant international attention and a dedicated fanbase despite limited domestic chart success. achieved milestones such as entering the World Albums chart and collaborating with Western artists, but Blockberry Creative's small-scale operations—often run with fewer than 20 staff—struggled with financial transparency and artist compensation. Blockberry Creative faced escalating controversies starting in 2022, including the abrupt expulsion of member for alleged misuse of power toward staff, which the agency claimed involved threats and demands for unfair profit shares—a charge denied, asserting it stemmed from her efforts to secure owed payments for the group. This triggered lawsuits from ten members citing exploitative 10-year contracts, withheld settlements despite reported revenues exceeding billions of won, and inadequate support, with courts repeatedly ruling in the artists' favor to terminate agreements due to breaches in profit distribution and trust. By mid-2023, all members had severed ties, prompting global fan boycotts and the label's inability to promote new acts or sustain operations, culminating in the shutdown of its websites and physical offices by 2024. The agency's downfall highlighted systemic issues in management, including opaque revenue sharing and overreliance on a single group's success without reinvestment in artist welfare.

Company Overview

Founding and Corporate Structure

Blockberry Creative was established on March 22, 2016, as a of , a South Korean company. The formation positioned it as a specialized entity for music production and artist management within the broader framework, which had been active since 2006 in managing actors, singers, and other talents. The company was headquartered in , , and operated as a private entity focused on project development. Early leadership included Kim Sun-hye as CEO, who oversaw operations during the label's initial years. By late 2016, additional executives such as co-CEO Lee Jong-myung were involved, contributing to strategic decisions amid the label's expansion into artist debuts. As a , Blockberry Creative maintained operational independence for creative projects while relying on for overarching support, including distribution partnerships with entities like Danal Entertainment in its early phase. This structure facilitated focused investments in initiatives, distinguishing it from Polaris's diversified portfolio. The 's corporate setup emphasized music functions over full-scale operations, with no public disclosure of initial capital or shareholding details beyond the parent-subsidiary relationship.

Business Model and Operations

Blockberry Creative functioned as a South Korean entertainment agency and , primarily generating revenue through the management of artists via exclusive contracts that enabled profit-sharing from music releases, live , fan events, merchandise sales, and commercial endorsements. The agency adopted a recoupment-based model common in the industry, wherein substantial upfront investments in artist training, music production, , and promotional content—such as high-budget —were deducted from gross revenues before any net profits were split between the agency and artists, often under terms like a 7:3 ratio favoring the agency after cost recovery. This post-expenses settlement approach contrasted with pre-expenses systems used by some competitors, prioritizing agency cost recovery amid high-risk investments. Operational activities centered on talent development and content production, including trainees, implementing rigorous training programs in vocals, dance, and performance, and orchestrating elaborate debut strategies tailored to flagship projects like . For , operations involved a phased rollout from 2016 to 2018, producing 12 individual solo singles with accompanying music videos, followed by three subunit mini-albums and the full group's debut, distributed through partners like Danal Entertainment, to build fan engagement and narrative lore ahead of monetization. The agency also handled artist scheduling for domestic and international promotions, though resource constraints limited scale compared to larger conglomerates, contributing to reported operational halts by late 2021 due to accumulated debts exceeding billions of . As a of established in 2016, Blockberry's structure emphasized focused artist management over diversified ventures, with CEO Kim Sun-hye overseeing production and contract administration, but financial mismanagement led to withheld settlements from artists—totaling billions of won in disputed revenues by 2024—and eventual contract terminations upheld by courts in 2023 and 2025. This model, while enabling creative risks like LOONA's innovative rollout, proved unsustainable without diversified income or efficient cost controls, resulting in the agency's effective dissolution by 2024.

Historical Development

Establishment and Early Projects (2016-2017)

Blockberry Creative was established on March 22, 2016, as a label under , a South Korean focused on artist management and . The new entity aimed to develop and promote musical acts within the industry, leveraging Polaris's existing infrastructure for training, marketing, and distribution. Headquartered in , it operated initially with a small team, including early leadership figures such as CEO Kim Seon-hye, who oversaw strategic planning amid the competitive landscape of idol group debuts. The company's inaugural major initiative was the launch of the project on October 2, 2016, an ambitious pre-debut strategy for a 12-member designed to build anticipation through sequential solo releases. This "Girl of the Month" involved unveiling one per month, each with an individual solo single, music video, and promotional activities to establish distinct member identities before a full-group debut. The first reveal featured Jeon Hee-jin on October 5, 2016, with her single "ViViD," produced in collaboration with external songwriters and featuring upbeat electronic pop elements tailored to her image as a vibrant performer. Subsequent releases in late 2016 included in November with "Around You" and Choi Ye-rim (Ha-seul) in December with "Let Me In," maintaining a consistent rollout schedule despite the label's nascent status and limited resources. Into 2017, the project accelerated with four additional member solos: Wong Ka-hei (ViVi) in January ("Everyday I Love You"), Jung Eun-bi (Kim Lip) in February ("Eclipse"), Im Jung-eun (JinSoul) in April ("Singing in the Rain"), and Choi Ye-rim (Choerry) in July ("Love Cherry Motion"). These early tracks emphasized diverse genres, from R&B-infused ballads to retro-inspired pop, and were supported by visually elaborate concept photoshoots and teaser campaigns on platforms, which garnered initial fan engagement exceeding 1 million views per video within weeks of release. Blockberry Creative handled in-house for and styling, outsourcing some to freelancers, as the label lacked a full roster of established in-house creators at this stage. No other significant projects or artist signings were publicly announced during this period, positioning LOONA's phased rollout as the core focus for building the company's profile.

LOONA Project Launch and Peak (2018-2021)

The project, managed by Blockberry Creative, transitioned to its full-group phase in 2018 after an extended pre-debut rollout of solo and subunit releases from 2016 to 2017. The 12-member ensemble debuted on August 20, 2018, with the mini-album [+ +], led by the "Hi High," a high-energy pop song produced to capitalize on the group's established of monthly "" unveilings. This launch EP, distributed via Danal Entertainment, sold over 100,000 copies in its first week on South Korean charts, marking Blockberry Creative's primary commercial bet on the group's multimedia lore and synchronized . In early 2019, LOONA repackaged [+ +] as the mini-album [X X] on February 19, featuring the lead single "Butterfly," which emphasized ethereal production and gained traction beyond through viral clips and playlist inclusions. The track's atmospheric style, crafted by producers like G-High of Monotree, contributed to LOONA's rising overseas buzz, with performances on shows like amplifying its reach despite limited domestic radio play. Member Haseul's hiatus for health reasons beginning in temporarily reduced promotions, yet the group maintained momentum through subunit activities and fan events. LOONA's peak commercial visibility occurred in 2020–2021, highlighted by the full album [12:00] released on October 18, 2020, which included "Star" as a lead track achieving first-time U.S. radio airplay and Billboard chart entry amid K-pop's global surge. The album's sales exceeded 150,000 units initially, bolstered by dedicated international fandom metrics like 1.6 million Instagram followers by early 2021, reflecting Blockberry Creative's strategy of leveraging online communities over traditional Korean media dominance. Further releases, such as the 2021 mini-album [&], sustained this trajectory with experimental tracks, though inconsistent scheduling and internal delays hinted at underlying operational strains. Overall, the period solidified LOONA's niche as a conceptually driven act, with streaming peaks reaching 2 million monthly Spotify listeners by mid-2021, driven more by organic fan advocacy than label marketing.

Decline Phase (2022-2023)

In November 2022, Blockberry Creative expelled member , citing allegations of and mistreatment of staff, which sparked widespread fan outrage and initiated a global against the agency. Fans accused the company of fabricating claims to cover mismanagement, leading to organized efforts to halt streaming, purchases, and event attendance, severely impacting revenue streams. Pre-orders for LOONA's scheduled comeback album, initially strong, plummeted by over 98% within weeks of the boycott's escalation in mid-December 2022, reflecting the scale of fan disengagement and financial strain on Blockberry Creative. On December 22, 2022, the agency indefinitely postponed the album's release, attributing the decision to ongoing internal disputes and external pressures, further eroding its operational capacity. Compounding the crisis, nine LOONA members filed lawsuits in late 2022 to terminate their exclusive contracts, alleging unfair profit distribution and inadequate support; by January 13, 2023, four members—, Kim Lip, Jinsoul, and Choerry—secured court rulings suspending their contracts, allowing them to pursue independent activities. Subsequent rulings followed: and Vivi's contracts were suspended in early May 2023, and on June 16, 2023, the remaining five members—Haseul, Yeojin, Yves, Go Won, and Olivia Hye—won their cases, effectively freeing all 12 original members from Blockberry Creative. These departures dismantled the agency's flagship group, halting group promotions and exacerbating its downturn amid persistent boycotts and legal battles.

Managed Artists and Projects

Sunye Management

Blockberry Creative signed former Wonder Girls member Sunye (Lee Sun-ye) to an exclusive contract on February 17, 2022, marking her return to the music industry after a hiatus focused on missionary work and family. This agreement followed her appearance on the 2021 survival show Mama the Idol, where she performed as part of the project group Mamadol, and came after her prior affiliation with parent company Polaris Entertainment. Under Blockberry, Sunye prepared her solo comeback, leveraging the label's resources amid its primary focus on the LOONA project. On July 26, 2022, released her debut mini-album Genuine through Blockberry Creative, consisting of five tracks with the lead single "Glass Heart," a pop song emphasizing emotional vulnerability and artistic maturity. The album represented her first major solo release since leaving in 2017, produced with contributions from in-house and external collaborators, though specific chart performance data remains limited, reflecting modest commercial reception compared to her group's peak era. Blockberry positioned the project as a vehicle for 's evolution into a veteran solo artist, aligning with the label's strategy of diversifying beyond amid the group's internal challenges. Sunye's tenure with Blockberry lasted approximately 16 months, ending on June 29, 2023, when her exclusive contract expired without renewal, leaving the label without active artists following LOONA's subunit departures. She announced the parting amicably, stating intentions to pursue independent activities, including a self-produced single "That's Me" released concurrently. Unlike LOONA members' disputes, Sunye's exit involved no public legal claims, though it coincided with Blockberry's broader operational decline, including stalled projects and financial strains. Post-departure, Sunye continued sporadic music and acting endeavors outside major label support.

LOONA Group

LOONA (stylized as LOOΠΔ), meaning "Girl of the Month," is a South Korean girl group formed by Blockberry Creative through an innovative pre-debut strategy launched in October 2016, which introduced members sequentially over 18 months via individual single albums. This project culminated in the full group's debut on August 20, 2018, with the mini album [+ +] and "hi high," following releases by three subunits. The group's concept revolved around a of worlds and , fostering a lore-driven appeal that built a global fanbase called Orbits. The 12 members, revealed in debut order, are (October 5, 2016), (November 27, 2016), Haseul (December 14, 2016), Yeojin (January 20, 2017), Vivi (April 27, 2017), Kim Lip (May 23, 2017), Jinsoul (June 26, 2017), Choerry (July 18, 2017), Yves (November 28, 2017), (December 28, 2017), Go Won (January 30, 2018), and Olivia Hye (March 21, 2018). Each member's solo debut included a tying into the overarching storyline, with tracks like Heejin's "ViViD" and Chuu's "Heart Attack" emphasizing individual themes of growth and emotion. Subunits released mini albums integrating select members: (Heejin, , Haseul, Yeojin) with Love & Live on December 15, 2017, featuring "Sonatine"; ODD EYE CIRCLE (Kim Lip, Jinsoul, Choerry, Vivi) with Mix & Match on November 27, 2017 (preceded by singles like "Love Cherry Motion"), and later Max & Match on February 13, 2018; and yyxy (Yves, , Go Won, Olivia Hye) with beauty&thebeat on May 30, 2018, including "love4eva." These releases showcased diverse styles, from acoustic pop in 1/3 to experimental in yyxy, amassing millions of views and establishing LOONA's approach. Post-debut, issued mini album X X (repackaged from earlier subunit works) on February 19, 2019, with "" peaking at number 2 on domestic charts and charting internationally on in multiple countries. The group achieved further milestones with their first full-length album [12:00] on October 19, 2020, selling over 100,000 copies in its first week and debuting at number 120 on the —the first such entry for a from outside , YG, or . Subsequent mini albums & (June 2021, led by "PTT") and (June 2022, led by "Flip That") continued promotions, though with diminishing domestic sales amid growing international recognition via platforms like . Blockberry Creative managed 's activities, including world tours like LOONATION and appearances on shows such as Queendom 2 in 2022, until contract terminations began in late 2022.

Abandoned Boy Group Initiative

In March 2022, Blockberry Creative announced the "Boy of the Month" project, a boy group initiative modeled after the pre-debut strategy of introducing members individually through monthly solo releases. The project targeted a debut in 2023, with global auditions open to males born in 2001 or later, regardless of nationality, and emphasized talents in singing, dancing, rapping, and visual appeal. Auditions commenced in March 2022 and continued into early 2023, including online submissions and in-person evaluations across regions, with the company promoting it as an opportunity for a multi-member group potentially numbering up to 12, similar to LOONA's structure. The initiative drew mixed reactions from observers, given Blockberry Creative's ongoing reputational challenges from LOONA-related disputes, including allegations of contract irregularities and delayed payments to artists. No members were publicly revealed, and the project stalled amid escalating legal battles over LOONA's contracts, which drained company resources and led to multiple court rulings suspending member agreements by January 2023. By mid-2023, as Blockberry Creative faced financial and operational shutdown, the boy group initiative was effectively abandoned, with no further updates or releases issued. This outcome aligned with the label's broader collapse, prioritizing survival over expansion into new artist ventures.

Controversies and Legal Disputes

Chuu Expulsion and Related Claims

On November 25, 2022, Blockberry Creative announced the expulsion of (real name ) from , effective immediately, citing her use of "violent language and misuse of power" toward a company staff member. The agency claimed this behavior violated her exclusive contract terms and justified her removal from group activities, including promotions and performances. Blockberry further alleged that had attempted to renegotiate or terminate parts of her contract independently since 2021, amid disputes over personal earnings and profit distribution, which they portrayed as breaches of trust. Chuu publicly denied the allegations of misconduct on November 29, 2022, stating she had "never done anything to shame my fans" and describing the claims as "slanderous." She emphasized exhaustion from the ongoing conflict, noting that fellow members and staff had contradicted Blockberry's narrative by supporting her character and denying instances of . Independent reports indicated the expulsion stemmed from deeper financial grievances, including Chuu's unpaid wages since 2021 and her efforts to address unequal profit shares, rather than verified misconduct. Blockberry's accusations were not substantiated with public evidence, and subsequent legal scrutiny highlighted inconsistencies, such as the agency's failure to provide documentation for claimed violations. In response, Chuu filed a in 2022 to invalidate her exclusive contract with Blockberry Creative, arguing breaches by the agency including unfair profit splits—where she received only about 68 million won (approximately $50,000 USD) in settlement despite generating an estimated 2.6 billion won (about $1.9 million USD) in revenue over five years—and systemic mismanagement. Courts ruled in her favor progressively: an initial victory nullified the contract, followed by an appellate confirmation in March 2024, and a final dismissal of Blockberry's appeal on June 27, 2024, upholding the termination and ordering the agency to pay damages. Blockberry's separate to enjoin Chuu's activities was rejected in 2023 for insufficient grounds, affirming her right to solo pursuits under ATRP Entertainment. This outcome paralleled lawsuits by other members, underscoring Blockberry's pattern of disputed contract enforcements amid profit allocation failures.

Member Contract Termination Lawsuits

In early 2023, following escalating disputes over profit distribution and management practices, nine LOONA members—Heejin, Haseul, Yeojin, Kim Lip, Jinsoul, Choerry, Yves, Go Won, and Olivia Hye—filed provisional injunctions with the Central District Court to suspend their exclusive contracts with Blockberry Creative. The filings alleged unfair revenue sharing, where members received minimal compensation despite the agency's profits from group activities, and insufficient support for individual promotions. On January 17, 2023, the court ruled in favor of four members—, Kim Lip, Jinsoul, and Choerry—suspending their contracts and allowing them to pursue independent activities without agency interference. This decision was based on evidence of the agency's failure to provide adequate profit settlements and operational transparency, violating standard contract norms under Korean civil law. In February 2023, the remaining two active members, ViVi and , submitted similar requests, citing parallel grievances including stalled group comebacks and withheld earnings statements. By June 16, 2023, the extended suspensions to the outstanding five members—Haseul, Yeojin, Yves, Go Won, and Olivia Hye—effectively freeing all 12 members from contractual obligations to Blockberry Creative. These provisional rulings enabled members to sign with new labels, such as ATV for and CTDENM for others, while full invalidity confirmation suits proceeded. On April 17, 2025, the Seoul Central District Court delivered a first-trial verdict confirming the invalidity of exclusive contracts for Haseul, Yeojin, Yves, Go Won, and Olivia Hye, severing ties permanently due to proven breaches in profit allocation and fiduciary duties by the agency. The court highlighted Blockberry's systemic underpayment—members reportedly received less than 5% of generated revenue—and lack of financial disclosures as causal factors justifying termination. Chuu's case, initiated after her November 2022 expulsion by the agency for alleged breaches, resulted in countersuits but aligned with the group's outcomes through separate damages claims exceeding 1 billion KRW, underscoring broader contract inequities. These rulings marked a rare collective success for idols under Korea's Fair Trade Commission guidelines, which emphasize equitable terms in entertainment agreements.

Mismanagement and Fraud Allegations

In August 2024, Blockberry Creative's CEO Lee Jong-myung and his spouse Kim Sun-hye, who serves as CEO of the company's parent entity Revibe United, faced criminal charges from the Seongbuk Police Station for , breach of trust, evasion of compulsory execution, and violations of the Act on the Regulation and Punishment of Concealment of Criminal Proceeds. These charges arose from the company's failure to pay approximately 110 million KRW (about 82,000 USD) to the production team for the music video of its Geenius, despite entering into a for the work in 2023. Blockberry attributed the non-payment to financial difficulties but lost a related civil , prompting the escalation to criminal proceedings. The case exemplifies broader patterns of alleged financial impropriety, including accusations of defrauding contractors by accepting services without intent or ability to compensate, which prosecutors viewed as intentional deception rather than mere insolvency. Similar complaints emerged from musical production staff, who filed suits claiming unpaid wages and alleging fraudulent inducement to perform work under false pretenses of payment. As of October 2025, the investigations remain ongoing without reported convictions, though the civil losses underscore verified defaults on obligations. These developments compound prior mismanagement claims, such as inadequate revenue distribution to artists and operational , but the specifically center on deliberate evasion tactics post-judgment, including asset concealment to avoid enforcement. Critics, including industry observers, have highlighted the charges as indicative of systemic failures by the leadership, potentially exacerbating the company's decline amid multiple lawsuits from former artists.

Dissolution and Aftermath

Fan Boycotts and Public Backlash

Following the expulsion of member on November 25, 2022, for alleged use of "violent language and misuse of power" toward staff—a claim widely disputed by fans as pretextual retaliation—'s fandom, known as Orbits, initiated widespread public backlash against Blockberry Creative. Orbits accused the agency of systemic mistreatment, including unfair profit distribution and exploitative contracts, prompting organized campaigns on platforms like (now X) and fan forums. On December 8, 2022, fans formally launched a targeting all Blockberry Creative revenue streams, including album sales, merchandise, concert tickets, and official content streams that directly benefited the agency. The movement, amplified by hashtags and statements from fan unions like Union, aimed to demonstrate solidarity with the 12 members who had filed lawsuits for contract termination starting in late 2022, citing years of abuse and mismanagement. By early 2023, the led to the suspension of 's planned comeback album, as low anticipated sales rendered it unviable, according to agency decisions influenced by fan pressure. Public backlash extended beyond boycotts to petitions and online protests; in February 2023, Orbits circulated a garnering thousands of signatures to support the members' legal battles, framing Blockberry's actions as predatory. Signs of impact emerged by April 2023, with Blockberry's online shop temporarily closing amid negligible traffic and sales, attributed directly to the sustained fan refusal to engage. A year into the campaign, by December 2023, all 12 members had successfully terminated their contracts through court rulings, crediting fan support for amplifying their cases and hastening the agency's operational collapse. Despite some internal fan debates over continuing streams for member visibility post-liberation, the remained a pivotal force in eroding Blockberry's viability, with Orbits viewing it as a rare successful fan-led reckoning against industry exploitation.

Financial Failure and 2024-2025 Legal Resolutions

Blockberry Creative's financial troubles emerged prominently in August 2021, when reports revealed the company owed billions of in back taxes, unpaid salaries to employees, and settlement payments to members, signaling a that halted group activities and strained operations. These debts stemmed from mismanagement, including failure to secure comebacks and revenue shortfalls despite 's prior successes, leading to wage arrears and operational paralysis by late 2021. The company's parent entities, such as , distanced themselves amid the fallout, exacerbating liquidity issues without injecting capital for recovery. Legal proceedings intensified these pressures, culminating in resolutions from 2024 to 2025 that terminated all exclusive contracts with LOONA's 12 members and rendered the agency non-functional. On June 21, 2024, the Seoul High Court ruled in favor of , Kim Lip, Jinsoul, and Choerry, invalidating their contracts due to Blockberry's breaches including unfair profit splits and failure to provide activity opportunities. This followed Chuu's appellate victory earlier upheld, with the dismissing Blockberry's appeal on June 27, 2024, confirming her contract suspension and damages award after two years of litigation over similar mismanagement claims. By April 17, 2025, the Central District Court extended terminations to the remaining five members—HaSeul, YeoJin, Yves, Go Won, and HyeJu—citing invalid profit distribution clauses and the agency's inability to fulfill obligations, marking the final severance of all artist ties. These rulings, grounded in evidence of allegations and withheld earnings, depleted Blockberry's resources through legal fees and lost appeals, leading to the removal of its building signage and cessation of activities by mid-2024. Without viable artists or revenue streams, the company effectively dissolved, transitioning to defunct status under ownership shifts to unrelated entities.

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