HallyuSG Explains: Why Song Ji-hyo is stepping up to pay salaries for Uzurocks’ employees

A recent exposé revealed that South Korea-based media company Uzurocks Entertainment encountered financial difficulties. This led to the delay of salary payments to its employees and artists for several months.

This includes Running Man star Song Ji-hyo.

The context: The agency did not fulfil salary payment

Song took legal action against Uzurocks after they failed to fulfill their agreement to pay her outstanding salary on eight different occasions. The agency promised to fulfil their payment on 10 Feb, 12 Feb, 28 Feb, 10 Mar, 31 Mar, 10 Apr, and 30 Apr. But to no avail. The unpaid sum totalled ₩900 million (approximately S$913k).

She later terminated her contract and parted ways with the agency in mid-Apr. A lawsuit was also filed to seek her rightful earnings that remained unpaid.

A closer look at Uzurocks Entertainment

Uzurocks Entertainment was established in 2019. Then, it mainly focused on content creation for social media platforms like YouTube and Tiktok. CEO Park Joo-nam also made his venture into the entertainment industry as he had connections with celebrities, Korean tabloid Dispatch reported.

They signed Song, an actress and entertainer most notably known for her appearance on variety programme Running Man, last October.

Park later rapidly expanded his company, and he found himself involved in a myriad of different industries. This includes beauty, theme parks, music production and even fitness.

The company later acknowledged their blunder. In an official press release shared after Song terminated her contract, the agency said: “We admit mistakes due to rapid expansion in operating various content-based business fields. We apologise for causing concern to many people who support our existing business”.

This was a costly misstep.

According to Dispatch, the profit margin of the company has plummeted to -72% and it has got itself into knee-high debt.

The issue: More than just company debt

The real crux of the issue is this. Park was always seen coming to work in a Porsche with luxury products from head to toe. On the outside, he “claims to have billions of dollars,” according to Dispatch.

 

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The rough estimate for a lease of a Porsche could amount to ₩2 million (approximately S$2k) a month. Yet, Park couldn’t pay his employees whose monthly wages are also estimating that amount. The key difference, though, is that one’s a luxury and the other is someone’s livelihood.  

The aftermath: Song lends a helping hand

In fact, some managers in Uzurocks have also resorted to using their personal credit cards to cover expenses without receiving reimbursements from the company. When Song later found out, she also allowed them to use her own credit card to alleviate their financial burden.

Song also expressed her willingness to forgo her own earnings. She said: “I can live without that money right now. But the employees now have bad credit, their credit cards are blocked, and their cell phones are disconnected”.

In one instance, Song even helped to cover hospital bills and medical fees for one of the employees.