'D-War' Producer Ordered to Return W500 Million to Investor
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The producers of "D-War", a fantasy blockbuster that topped South Korea's box office in 2007, have broken a distribution contract with a local investor and should return its money, a court said Monday.
The Seoul Central District Court ruled against Younggu Art Entertainment, run by movie director and comedian Shim Hyung-rae, saying it signed double contracts for D-War's distribution at home and abroad in 2006 and should now pay back 500 million won ($352,112), according to Yonhap News.
The plaintiff, whose name was withheld, signed a 720 million won contract with Younggu Art for exclusive rights to distribute the movie to theaters and TV stations and for home video in and outside the country on behalf of the producers.
The investor provided a first tranche of 500 million won, but before the outstanding amount was cleared, Younggu Art signed a contract with another investor, commissioning it to carry out home video and other sales.
With regard to the termination of the earlier deal, Younggu Art explained that the outstanding contract money had not been remitted and their contract had automatically expired.
"The contract makes clear what kind of rights the plaintiff holds with regard to the movie's distribution, and Younggu Art should have let the plaintiff carry out the comprehensive sales activity it was commissioned to do", Judge Lee Nae-joo was quoted as saying in the verdict.
The $30 million science-fiction film drew 8.42 million viewers in South Korea last year, topping the slumping local movie market. Shim's legion of fans, mostly children, praised the movie's computer-generated special effects, while critics scoffed at its implausible scenario and poor acting.
The Seoul Central District Court ruled against Younggu Art Entertainment, run by movie director and comedian Shim Hyung-rae, saying it signed double contracts for D-War's distribution at home and abroad in 2006 and should now pay back 500 million won ($352,112), according to Yonhap News.
The plaintiff, whose name was withheld, signed a 720 million won contract with Younggu Art for exclusive rights to distribute the movie to theaters and TV stations and for home video in and outside the country on behalf of the producers.
The investor provided a first tranche of 500 million won, but before the outstanding amount was cleared, Younggu Art signed a contract with another investor, commissioning it to carry out home video and other sales.
With regard to the termination of the earlier deal, Younggu Art explained that the outstanding contract money had not been remitted and their contract had automatically expired.
"The contract makes clear what kind of rights the plaintiff holds with regard to the movie's distribution, and Younggu Art should have let the plaintiff carry out the comprehensive sales activity it was commissioned to do", Judge Lee Nae-joo was quoted as saying in the verdict.
The $30 million science-fiction film drew 8.42 million viewers in South Korea last year, topping the slumping local movie market. Shim's legion of fans, mostly children, praised the movie's computer-generated special effects, while critics scoffed at its implausible scenario and poor acting.
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