Fans and netizens have been all too critical of JYP Entertainment and its CEO Jin Young Park lately, and the latest scandal has not helped matters much.

JYP and his company, however, have released a statement in hopes of setting the record straight and quieting the rumors and negative comments directed toward them.

The most recent issue involves contracts made last year for some promotional products that were produced at the request of JYP Entertainment and feature their artists (mostly 2PM). There were two primary items that were made, toothbrushes and an "album T-shirt" which would link the wearer to 2PM's new album via a QR code.

According to an MBC news report, the subcontractors who produced the items claim that due to poor sales, they were stuck with excess product and forced to foot the bill. They also said that due to copyright laws, they were unable to peddle the items themselves causing a rather severe financial burden.

The T-shirt company reported that at the request of JYP Entertainment they suffered losses equal to about $100,000 USD and the toothbrush company says there is approximately $20,000 USD still left to be paid by the entertainment agency.

When the news broke netizens were outraged and the negative comments began to pour in.

"JYP is really digging their own grave. Why can't they do anything right? The companies are just as messed up for signing the contract thinking products like that would sell well and then complaining about it through the news now that it's not," said one comment to the MBC story.

Other comments followed the same tune. Remarks like "JYP's going to be over soon" and "JYP needs to be kicked out of the industry" echo the effects of the company's reputation.

Late on Sunday, JYP Entertainment released their official statement on the matter, reacting quickly to the scandal.

Through a press release the company stated that the official who handled the matter violated the firm's regulations and left the company earlier this year. When the new official took charge, no problems were noticed in the contracts, and therefore he assumed there were no unresolved issues.

The press release went on to say that the agency was unaware of the damages to the subcontractors because another company, managed by one of Jin Young Park's relatives, was actually in charge of the business. JYP Entertainment said that they no longer have a working relationship with that company.

The official statement ended with a promise that considerably more attention will be paid to future subcontractor contracts and that they are working on understanding the current situation more after sending official cooperation requests to the companies involved in the matter.

Since clarifying the matter, netizens are still not satisfied. While many have applauded JYP for reacting quickly to the escalating issue, there is still a resounding call to admit fault and compensate the product producers for their losses.