A South Korean entertainment will nullify contracts with two singers after a series of issues.

On April 1, Kim Tae Woo, the head of Soul Shop Entertainment and member of K-pop group g.o.d, announced that Soul Shop would take steps to release singers Megan Lee and Kil Gun from their contracts with the company. Kim cited his "family and the company" as reasons for the announcement.

Prior to Kim's announcement, both Kil Gun and Megan Lee tried to terminate their contracts via lawsuits due to mismanagement.

According to the Korea Herald, Kim addressed the accusations by both singers, and announced the company's way of dealing with the situations.

He also expressed sadness over issues arising due to difference between an artist and an entertainment company's needs.

"Contracted celebrities always think their agency is not good enough. It's a matter of how well both sides try to understand each other," said Kim. He cited Megan Lee's ventures into the American market as an example, explaining that Soul Shop had focused on getting her jobs in Korean musicals while she wanted to head Stateside.

Lee is currently appearing in Nickelodeon's Make It Pop television show after filing her contract nullification lawsuit.

Soul Shop Entertainment previously contested a court ruling that Megan Lee's contract with the company was not exclusive, allowing her to continue her career without Soul Shop Entertainment representing her.

Kil Gun previously also expressed her issues with Soul Shop Entertainment during a press conference, where she said that the company had mismanaged her career in part due to indifference.

Soul Shop Entertainment will give Kil Gun a prepaid check upon the release of her contract.

Kim expressed regret over reports claiming nepotism and falsified qualifications to place Kim's wife as the director of Soul Shop Entertainment and his mother-in-law as a branch manager.

"I feel sorry for my family ... I would rather face criticism in place of my family. Please stop looking at them negatively," asked Kim during the press conference.

While Kim said that he hoped the same sort of issues between Soul Shop and its artists would not arise in the future, he declared it as part of the "process of becoming more mature."