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Swift uses music muscle to seek higher payouts for others

TAYLOR SWIFT accepts Artist of the Year at the 2018 American Music Awards on Oct. 9.

LOS ANGELES — Pop music titan Taylor Swift on Monday announced a new record deal with Universal Music Group (UMG) that will give her greater control over her own music and could boost future payouts to artists for music played on streaming service Spotify.
Ms. Swift, who with best-selling albums like 1989 and Reputation is one of pop music’s wealthiest and most influential artists, said the deal with UMG included an agreement that any potential sale of UMG’s shares in Spotify “result in a distribution of money to their artists, non-recoupable.”
“They have generously agreed to this, at what they believe will be much better terms and paid out previously by other major labels,” the “Fearless” singer told her 113 million Instagram followers in a posting.
Spotify, which with some 83 million paid subscribers is the world’s most popular paid music streaming service, went public in April.
“I feel strongly that streaming was founded on and continues to thrive based on the magic created by artists, writers and producers,” Ms. Swift wrote.
Ms. Swift, 28, said she would also own all of her master recordings going forward. The financial terms of her deal with UMG were not released.
Ms. Swift has long used her leverage in the industry to campaign for better payments to artists from streaming services. In 2017, she returned her music to Spotify almost three years after complaining publicly that streaming services did not pay artists enough.
Online streaming services like Spotify and Apple Music have become the recording industry’s single biggest revenue source, and last year overtook physical sales of CDs and digital downloads for the first time, global industry body IFPI said in an April report.
Universal Music, a unit of Vivendi, said the multi-album, multi-year agreement was effective immediately.
Universal Music chief executive Lucian Grainge said in a statement that he respected Ms. Swift’s campaign for better terms.
“Because of her commitment to her fellow artists, not only did she want to partner with a company that understood her creative vision and had the resources and expertise to execute globally on her behalf, she also sought a partner whose approach to artists was aligned with hers,” Mr. Grainge said.
Ms. Swift, who began her music career at age 15 as a country singer with small independent Nashville label Big Machine Records, has earned 10 Grammys and is the only artist with four albums that have sold more than one million copies in their first week of release. — Reuters

Australian firm acquires PHL-based TicketWorld

TICKETING and data analytics firm TEG has acquired local ticket provider TicketWorld, as the Sydney-based company expands its footprint in Asia.
In a statement issued Thursday, TEG said TicketWorld will now become part of TEG Asia headquartered in Singapore.
“TicketWorld is a strong ticketing business that will be enhanced by having access to TEG’s ticketing technology, data-driven marketing expertise and e-commerce experience,” TEG Asia Managing Director Brendon Bainbridge said in a statement.
Established in 1995, TicketWorld specializes in providing ticketing services for live events, offering clients services such as ticket printing and design, ticket distribution, venue box office services, and 4D Theater licensing and distribution, according to its website.
TicketWorld ticketed several major international concerts such as Guns N’ Roses and Katy Perry. To note, TEG also ticketed and promoted both shows in Australia and New Zealand.
In terms of theatre productions, TicketWorld has provided services for The Lion King, Mamma Mia, Les Miserables, and Wicked in the country.
The company is also the ticket provider for premier local venues such as Solaire Resort and Casino, Resorts World Manila, BGC Arts Center, and the Cultural Center of the Philippines.
Meanwhile, TEG describes itself as the largest integrated entertainment company in the Asia Pacific region. The company owns Ticketek Australia and New Zealand, and has affiliated ticketing operations in Malaysia, Hong Kong, and Macau at the same time.
“We see great opportunities in many Asian markets and our strategy puts us on course to becoming a truly pan-Asian promoter.” TEG Chief Executive Officer Geoff Jones was quoted as saying in a statement.
“TicketWorld has built a great reputation and lasting relationships in the Philippines live entertainment industry.”
TicketWorld Founder and Chief Executive Officer Bob Sewell and his management team will remain with the business amid the change in ownership.
“I look forward to working with TEG and its team of entertainment professionals. The opportunity to grow the market in the Philippines by delivering more entertainment choices will be well received in the Philippines,” Mr. Sewell said. — Arra B. Francia

Taylor Swift’s $300-million song is worth every penny

By Alex Webb, Bloomberg Opinion
THERE’S little better way for Vivendi SA’s Universal Music Group to burnish its reputation ahead of a prospective stake sale than by signing up Taylor Swift.
The French parent is preparing for the disposal of up to half of the world’s biggest music label next year. Ms. Swift’s announcement on her Tumblr account that she has signed with UMG is a nice boost for the bankers running the sale process.
Her post was scant on details — such as the length and value of the deal — bar one curious element. Vivendi still owns a stake of about 4% in Spotify Technology SA, the music streaming giant. It has promised the pop star that it will share the proceeds of any future sale of that holding with the artists on its labels. Warner Music Group and Sony Corp., the two biggest record companies after UMG, have done similar. Ms. Swift has long been an agitator for better revenue-sharing from streaming.
Despite the precedents, this seems an uncharacteristically generous offer from Vincent Bollore, the French billionaire who controls Vivendi. While sharing the gains might look great from the artists’ perspective, it’s less attractive for UMG’s owners.
When Sony sold $768-million worth of Spotify shares at the time of the latter’s listing in April, it passed on about a third of the proceeds to artists and labels, retaining some $504 million. Vivendi’s stake is estimated to be worth about $900 million currently, so a similar ratio would mean handing $300 million to the musicians.
If Ms. Swift makes — for argument’s sake — three albums with UMG, the company might optimistically expect a cumulative $75 million earnings boost. So at first glance this looks like a pretty expensive promise to get the superstar on its roster.
However, the French conglomerate made no commitment to Ms. Swift on when it would reduce the stake. Indeed, Vivendi CEO Arnaud de Puyfontaine indicated back in May that he had no plans to sell the shares any time soon.
Besides, the company said at the same time that it expected a UMG valuation in excess of $28 billion. That makes it pretty easy to swallow a potential $300 million hit on the value of its Spotify stake because of the promise to Ms. Swift. It’s about 1.1% of UMG’s hoped-for value.
Being able to show potential stake-buyers that you’ve signed one of the world’s 10 best-selling artists should easily outweigh that. As analysts at Deutsche Bank point out, only six albums in the past decade have exceeded 1 million traditional US sales in their first week; four were from Ms. Swift.
Call it what you want, this looks like a canny bit of business when investors ask whether UMG is worth the price.

Expected raises for 2019 job switchers seen at 20%-60%

SENIOR and mid-level professionals switching jobs can expect pay hikes of 20%-60% as a survey of hiring activity indicated a strong job market extending to 2019, Robert Walters said in a statement on Thursday.
The recruitment firm said: “2018 (was) an active year of recruitment for the Philippines, amid a stable economic environment led by the influx of foreign companies and surging local growth and demand.”
For 2019, RW projects its Salary Survey to return strong results.
“We see the recruitment market being active… and it’s going to be very active in 2019,” Robert Walters Philippines Country Manager Monty Sujanani said during a briefing, in which he also noted the “more buoyant economy” as responsible for the growth.
“Lots of… international companies are opening up here and lots of local companies are scaling up,” he added.
In 2018, the firm found that workers changing jobs in 2018 received an average raise of 20% and the trend is expected to continue until next year. Professionals in certain sectors will be much more in demand in 2019 in mid to senior-level positions, it said.
Mr. Sujanani said: “Companies sought to hire professionals with digital or e-commerce experience, while new-technology tools and solutions being offered to the market played a key role in the creation of new sales and marketing positions.”
He added: “There was also a greater demand for niche specializations due to new regulations in banking and financial services, migration activities from abroad, and increasingly digital and cashless banking.”
For 2019, accounting and finance professionals can expect a stable recruitment market. The Salary Survey also notes that new tax regulation in the Philippines will further increase demand for professionals with tax and audit experience, with raises of 20%-30% expected in 2019 for professionals changing jobs .
Banking and finance professionals also face similar demand levels next year for specialists in compliance, audit, and risk. The Salary Survey also notes stronger demand for anti-money laundering and financial crime compliance specialists. Professionals with such credentials can expect raises of 10% to 15% in 2019.
IT professionals can look forward to a “robust recruitment market” in 2019 due to “sustained uptrend in job vacancies and average salaries.” Certain niche skills within the sector are likely to attract higher salaries especially data science and analytics; robotics and automation; and the Internet of Things (IoT). IT professionals switching jobs can expect raises of 30% to 60% next year.
The market for sales and marketing professionals will be competitive in 2019, particularly for candidates with experience in e-commerce, analytics and start-ups at the regional or international level.
Professionals do not only consider salary, the firm said, but gravitate towards incentive and bonus schemes, allowances, signing bonuses and convertible reimbursements.
The Salary Survey also pointed that the Human Resources sector will be affected by the tax reform law’s next phase which will amend the corporate tax and incentive regime. Professionals in the sector who change jobs can expect raises of 20 to 25%, similar to 2018 levels. — Gillian M. Cortez

AirAsia to launch Cebu-Macau flights

PHILIPPINES AirAsia, Inc. is launching a new direct route from Cebu to Macau in February.
In a statement, the budget carrier said it is mounting a daily flight from its hub in Cebu to Macau starting Feb. 8, 2019.
“We are pleased to introduce Cebu — Macau route as part of our long-term expansion plan to further connect Cebu as an important hub for tourism and business,” Philippines AirAsia CEO Dexter M. Comendador was quoted as saying.
AirAsia is offering promotional all-in-fares from P1,390 one-way until Nov. 25, for travel period between Feb. 8 to March 30, 2019. The promo fares are available on its website, mobile app and mobile site.
Earlier this month, AirAsia said it is adding three times weekly flights to Seoul from Clark beginning Jan. 19, 2019.

Higher rates a risk for PHL banks

HIGHER interest rates pose the biggest risk for banks, S&P Global Ratings said, but will be “manageable” as both corporate and retail borrowers are able to absorb higher borrowing costs.
In a webcast, the credit rater said Philippine lenders can keep up with rising interest rates, even as this could put pressure on loan growth as well as revenues.
“There is a risk of rising interest rates, but it’s a manageable risk at this point in time,” Nikita Anand, associate at S&P’s financial institutions ratings, said in a webcast on Wednesday afternoon.
Policy rates have risen by 175 basis points (bp) after five straight rate hikes by the central bank, which were done to rein in price expectations as inflation surged beyond the 2-4% target set for 2018. Central bank officials have said they will remain watchful and will act as need to keep prices stable.
“A prolonged further rise in interest rates will push some of the highly indebted borrowers to the fringe and will reduce their debt servicing capacity, and that could lead to higher credit costs,” Ms. Anand added. “But again, the credit costs and NPLs (non-performing loans) in the Philippines have been extremely low in the last several years.”
The debt watcher said there is little cause for concern given relatively low debt exposures compared to other Southeast Asian countries. Still, some lenders could see a higher share of soured loan as borrowing costs rise, but will remain at a tolerable level.
Corporate credit lines should continue to keep banks afloat, with “cash-rich” conglomerates still taking up bulk of total loan portfolios, she added. Meanwhile, the household sector can still afford to keep up with higher interest rates as they hold more disposable income from the lowering of personal taxes coupled with a steady stream of dollar remittances.
However, Ms. Anand noted that loan growth may soften in the coming months to low double-digit levels, following a trend annual increase of 17-18% over the last few years.
“It will be interesting to see if banks can pass on the higher cost of borrowings to the borrowers,” she added, noting that this will boost interest margins and support stronger bottom lines.
Across the region, banks are seeing declining income growth due to a deceleration in lending activities.
“Slower loan growth, higher interest rates and competition disruption especially in fintech (financial technology) and payments scheme have caused revenue pressure for these banking systems,” said S&P director Ivan Tan.
Instead, lenders have turned to “cost control” to preserve profitability, as they are losing fee-based incomes to fintech counterparts.
But higher interest rates aren’t all bad for banks, Mr. Tan said. He noted that for every 25-bp increase in borrowing rates, around 5-10 bps “will translate into higher interest rate margins” for lenders. A strong capital base also ensures resilience.
“We have continued to maintain a stable outlook on ASEAN banking systems that we rate. We think despite the external turmoil and trade war and potential new accounting standards coming in, they are entering this challenging period with a position of strength,” Mr. Tan said.
Moody’s Investors Service also kept its “stable” outlook for Philippine banks earlier this week, as players will continue to benefit from favorable macroeconomic factors of the domestic economy.
RATE HIKES DONE FOR NOW
But Bank of the Philippine Islands (BPI) said the Bangko Sentral ng Pilipinas (BSP) is expected to hold policy rates steady during its December meeting as monthly inflation is seen to decelerate, adding the regulator has space to start cutting the reserve requirements of lenders.
In an economic briefing, BPI Chief Economist Emilio S. Neri Jr. projected that the central bank will hold off on further tightening moves at its policy meeting next month as monthly price increase will “start decelerating.”
“This is expected through 2019. [Inflation prints] will be much lower than the 6.7% that we saw for both [September and October],” Mr. Neri told reporters on Thursday.
Inflation steadied at 6.7% in October, matching the previous month’s print which was a nine-year high. Month-on-month inflation likewise eased to 0.3% last month from 0.9% in September.
Mr. Neri projected that inflation will start to decelerate as global oil prices could rise more modestly next year than in 2018.
“The WTI (West Texas Intermediate) crude went up by 40% in peso terms, which is the highest in 10 years. We don’t see this happening in 2019. There could be an increase…but it will not be as large and therefore should allow inflation to head back to targets by next year.”
Inflation is expected to settle at 3.5%, back within the 2-4% target band and lower than the 4.3% previous estimate.
However, the economist noted it is “premature” for the BSP to cut its policy rates — which currently stand at a 4.25-5.25% range — anytime next year.
“We don’t think the BSP will be cutting rates unless inflation prints below 2%, which we think is somewhat unlikely,” he said.
Still, Mr. Neri said the central bank has enough policy space to continue reducing its reserve requirements for commercial lenders, which is currently at 18%.
“We therefore believe that the policy move of the BSP after last Nov. 15 would be a resumption of cuts in reserve requirements at least two percentage points in 2019. More likely than not, this is expected in the middle of next year.”
Earlier this year, the central bank trimmed lenders’ reserve requirement by a cumulative two percentage points to deepen the local debt market.
“Once it’s very clear that we’re within target, we believe BSP will take the initiative to reduce the very repressive 18% reserve requirement,” BPI said.
Mr. Neri added that keeping the reserve requirement at its current level is “repressive” amid tighter capital adequacy compliance under the international Basel 3 standards.
The economist also noted that the BSP may take advantage of the entrance of the oil market into bear territory to replenish international reserves.
“More so that the Philippines continues to have a capital goods or investment backlog and that continued growth in imports in the coming years or quarters will require the Bangko Sentral to have a more comfortable amount of reserves.”
Dollar reserves slipped to a fresh seven-year low of $74.773 billion in October from the $80.419 billion booked a year ago, as the central bank defended the peso and as the government paid maturing foreign debt. — Melissa Luz T. Lopez and Karl Angelo N. Vidal

Dolce & Gabbana in China storm over videos seen as racist

CHINESE CONSUMERS are calling for a boycott of Dolce & Gabbana after the Italian fashion house posted videos that are being criticized as racist and insensitive, setting off a social-media drama that’s led to the postponement of a Shanghai runway show hours before it was due to start.
The storm intensified after screenshots of incendiary messages sent from co-founder Stefano Gabbana’s Instagram account leaked on the platform and top Chinese talent pulled out of the event. The brand said in social media posts that its account and that of Gabbana had been hacked.
The videos show a Chinese model struggling to eat Italian dishes like spaghetti and cannoli pastry with a pair of chopsticks. They were originally posted this week on Weibo, a Chinese microblogging service, and were deleted after a widespread backlash. The clips could still be viewed on the company’s Instagram account as of Wednesday.
Dolce & Gabbana has run into trouble as global luxury brands are increasingly dependent on China to drive growth. The country’s consumers spent more than $100 billion on high-end purchases last year — almost a third of the global total. Fears that Chinese demand for premium goods was slowing in the face of waning consumer confidence and the ongoing US-China trade war sent jitters across global luxury stocks last month, wiping out some $160 billion in market value.
OFFENSIVE ADS, MESSAGES
Chinese netizens said the video ads had racist overtones, including the stereotypical look of the model, who was dressed in a red, sequined D&G dress. The clips feature traditional Chinese music and a suggestive voice-over from a male narrator, who asks the actress trying to eat the cannoli: “Is it too big for you?” The ads were part of a campaign to promote the luxury brand’s Shanghai runway show that was scheduled for Wednesday.
The matter escalated as screenshots surfaced of Gabbana’s Instagram account, including a message exchange that said the videos were posted “by my will.” Another message complained of a “China Ignorant Dirty Smelling Mafia,” according to a widely shared screenshot.
“Our dream was to bring to Shanghai a tribute event dedicated to China which tells our history and vision,” Gabbana and co-founder Domenico Dolce said in an e-mailed statement. “What happened today was very unfortunate not only for us, but also for all the people who worked day and night to bring this event to life.”
The latest uproar comes as Chinese consumers have become increasingly quick to call out brands for marketing they see as condescending, out of touch or racist. LVMH’s Christian Dior has faced criticism for adding the Chinese social media star known as Angelababy — often referred to as a sort-of Chinese Kim Kardashian — to its roster of brand ambassadors while its lineup of Western stars includes A-list silver-screen star Jennifer Lawrence.
ITALY SELFIES
Dolce & Gabbana has previously courted controversy in China. Last year the brand pulled online ads after Internet users took to social media to criticize the company for portraying an underdeveloped China. Another campaign showed Chinese tourists taking selfies in Italy.
Before the brand announced the postponement of Wednesday’s show, several Chinese celebrities, including actresses Zhang Ziyi and Li Bingbing, announced they would not attend and would boycott the brand.
Chinese social media users were riveted by the furor. “D&G show canceled” and “D&G designer” were the two most-searched topics on China’s Weibo on Wednesday afternoon. — Bloomberg

Bill proposes civil service eligibility for long-serving contract workers

A BILL granting civil service eligibility to contractual government employees who have been in service for three consecutive years has been filed at the House of Representatives.
House Bill 8620, or the proposed Automatic Civil Service Eligibility Act, intends to grant eligibility to contractual employees, provided service has been rendered for at least three years consecutively and at least five years, if non-consecutive.
Kabayan Rep. Ron P. Salo and Rep. Paul P. Hernandez, who wrote the bill, said the measure seeks to cover over 660,000 workers hired as contractuals or casual workers.
“With over 660,000 employees hired as contractuals, casuals or on job order status, it would appear that the biggest violator of this basic employee right to be regularized is the government itself,” they said in the bill’s explanatory note.
The Civil Service examination is a requirement for career public servants, and automatic civil service eligibility offers non-permanent workers a path to regular status.
Mr. Salo also said concerns about academic qualifications and required training hours may be further addressed in the implementing rules.
“The degree and training hour issues appear to be difficult to address because many of our casuals, contractuals and job orders may lack the same. However, these may be compensated for by their experience and actual performance of the functions of the position in which they shall be granted this privilege,” he said in a separate statement, issued on Thursday. — Charmaine A. Tadalan

ALQC seeks DENR nod to resume operations

BAGUIO CITY — Suspended quarrying company Apo Land Quarry Corporation (ALQC) is hoping to be allowed to resume operations while they are in the process of complying with the requirements set by the Department of Environment and Natural Resources (DENR).
Ang bargaining nila, they will start compliance provided that continue ung operations ng kanilang cement plant para mayroon silang pangtustos sa gastos (so they have funds to spend),” Mines and Geosciences Bureau (MGB) Director Wilfredo G. Moncano told reporters.
One of the DENR’s requirements is for the company to build a safety wall, remove the hazard, and stockpile it in the perimeter area.
However, Mr. Moncano said the DENR cannot lift the suspension, which was imposed last September, until the company shows compliance with the requirements.
ALQC is an wholly-owned entity by Impact Assets Corporation wherein Cemex Holdings Philippines holds 40% equity.
Mr. Moncano said ALQC also wants to use the debris materials for its plant operations.
“The Secretary has not given clearance. Gusto niya muna mag-start yung containment, mag-lagay ng safety wall, cleaning up the Pandan River. May isang river diyan na na-block ng debris material, pag malakas ang ulan, maaaring mag-cause ng flooding,” he said.
Mr. Moncano said the DENR expects the company to complete the requirements by February. — R.J.N.Ignacio

Gov’t raises P15 billion via T-bond tap facility

THE TREASURY raised an additional P15 billion through the tap facility. — BW FILE PHOTO

THE GOVERNMENT raised another P15 billion in fresh funds after opening a tap facility to accommodate excess demand from its Wednesday Treasury bond (T-bond) auction.
The Bureau of the Treasury made a full award of the P15 billion worth of five-year papers it offered through a tap facility that was opened from 2 to 4 p.m. for its market makers.
The papers received overwhelming demand from investors amounting to P50.976 billion, higher than the P48.857 billion received during the previous bond auction.
The five-year notes, which carry a coupon rate of 5.5%, fetched an average rate of 7.003%, which was based on the yield fetched during the bond auction.
The rate was 33.9 basis points lower than the 7.342% fetched during the last bond issuance of the same tenor on Oct. 9.
National Treasurer Rosalia V. De Leon said on Wednesday that the government opened a tap facility to accommodate the overwhelming demand it received during the bond auction.
“We saw very strong bids for the tap, and the rate is also something that is favorable to us,” National Treasurer Rosalia V. De Leon told reporters on Wednesday.
“For those who were not accepted but would want to accept at that rate, then they can avail of the tap facility.”
Market makers allowed to participate in the tap facility include Bank of the Philippine Islands, BDO Unibank, Inc., China Banking Corp., Citibank Philippines, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank & Trust Co., First Metro Investment Corp., Rizal Commercial Banking Corp. and Security Bank Corp.
The Treasury last opened a tap facility in January 2017.
“We have that facility, it’s just we haven’t really availed of it. However, we saw really strong [and healthy] submissions,” Ms. De Leon added.
Meanwhile, a bond trader said the tap facility was oversubscribed as market participants found the rate good amid lower yields on US Treasuries and ahead of likely “tamed” policy tightening path from the US Federal Reserve.
“We saw some demand as yields might start to fall since the US Treasuries are now lower due to lower equities,” the trader said in a phone interview yesterday.
“We’re also expecting another rate hike from the Fed on December, but the future rate hikes might be tamed for 2019.”
The trader added that bids for the tap facility were slightly bigger than the previous bond auction as market makers were attracted to the yield.
“The facility was only for the 10 market makers but they also had the demand for those since the yield was good,” the trader added. — Karl Angelo N. Vidal

LANDBANK’s net earnings climb

STATE-RUN Land Bank of the Philippines (LANDBANK) saw its net income surge as of September as loans grew by more than a third, it reported yesterday.
In a statement, LANDBANK reported an P11.4-billion bottom line for the first nine months, 9% higher than the P10.5 billion it made during the comparable year-ago period.
The bigger revenues are driven by bigger interest income, fueled by a 37% increase in the bank’s total loan portfolio now worth P838.7 billion. Meanwhile, return on equity hit 13.15% to clock in above industry average, the bank said.
This came alongside a 20% increase in deposits, which expanded to P1.57 trillion from P1.31 trillion during the same period in 2017, due to bigger private and government funds parked under LANDBANK accounts. In turn, the bank’s total assets also grew a fifth to reach P1.77 trillion as of September.
The government’s biggest financial firm also reported a higher capital base, with the amount growing by 22.6% to P124.9 billion.
LANDBANK President and chief executive officer Alex V. Buenaventura said the lender will likely sustain the robust income growth for the rest of the year, supported by the strength of its core businesses.
“We are optimistic about capping 2018 on a high note, as income from loans and investments remains strong,” Mr. Buenaventura was quoted as saying. “This allows us to continue to channel greater financial assistance to our priority sectors, foremost to our farmers and fishers, microenterprises and SMEs, agribusiness and other development players.”
The state lender is eyeing to rake in a P16-billion profit this year, which if realized will climb from the P14.05 billion net income in 2017.
LANDBANK serves as the main depository bank for government funds, and is being used for the release of cash transfers to poor families as well as subsidies to certain sectors. It is also focused on lending to farmers and small-scale firms.
LANDBANK is also looking to acquire a controlling stake in the Philippine Dealing System Holdings Corp. (PDS) by December. The bank has offered to buy PDS shares at P215 apiece, with Mr. Buenaventura hoping to get a supermajority by buying some 67.67% of the country’s fixed-income bourse.
Mr. Buenaventura previously said the bank’s control of PDS will help aid financial market reforms as they plan to take bond issuances and purchases wider via their network, as they seek to support corporate bonds floated by small and medium-sized firms. — Melissa Luz T. Lopez

Loving Lee Jong Suk

By Cecille Santillan-Visto
Fan Meeting
2018 Lee Jong Suk Fan Meeting
Tour — Crank Up in Manila

Nov. 18
Araneta Coliseum,
Cubao, Quezon City

THE Araneta Coliseum can be a daunting venue even for the biggest of stars. With a seating capacity of nearly 10,000, even foreign artists know how difficult it is to pack the Big Dome.
Among Korean actors, only superstar Lee Min Ho was brave enough to stage not just one, but two fan meetings at the Smart Araneta Coliseum — first in November 2012, and again in August 2014. Both sold-out events were free for fans who met the minimum purchase requirement of a local clothing brand.
Over the weekend, another K-celebrity tested — and ultimately proved — his crowd-drawing power. The difference in the fan gathering of 29-year-old actor Lee Jong Suk is that his audience was made up of paying customers who shelled out between P2,500 and P10,000 to get the chance to see him in the flesh.
Prior to Sunday’s show, his Filipino fans were worried that it would be cancelled. Two weeks before the Manila leg of the Crank Up Fan Meeting Tour, Mr. Lee had a similar show in Jakarta, Indonesia. Reports have it that the producer failed to correctly declare the show’s gross receipts, resulting in the remittance of lower taxes to the government. The model-turned-actor and his entourage were detained at the airport for two days until the issue was resolved.
“I am glad to be here for the last leg of my fan meeting tour,” he told spectators. However, he hinted that he will be enlisting in the military — a requirement for all citizens in South Korean — in 2019, noting that “we might have a break from each other next year.”
The I Can Hear Your Voice star’s visit was a long time coming but he made sure that the fan meeting would leave fans with memories enough to sustain them until his next Manila stop.
He sang three songs, played the piano, and gamely interacted with six lucky fans on stage. The W headliner also had an extended question-and-answer portion with comedienne Giselle Sanchez, who hosted the event. He talked about his family, shared some of the best (mostly kissing) scenes from his blockbuster dramas, and disclosed that due to his heavy workload, he expects to work even on New Year’s Eve.
Mr. Lee delighted the fans when he sang “Come To Me,” from the official sound track of While You Were Sleeping, a romantic comedy with Suzy Bae as his leading lady. He was obviously off-key and his voice cracked early in the song but the crowd did not mind. He is, after all, an actor and not a professional singer.
When he later took to the piano, he played the instrumental “My Soul.” He had to repeat the song from the beginning when he committed a mistake after a few bars. The Pinocchio actor likewise hesitated mid-way but was able to finish the song without stopping.
“It is not easy,” he said, heaving a sigh of relief, but he continued to wear to charming smile throughout.
Undeterred, he followed it up with “Do You Know,” where he again stumbled only a few seconds in, but quickly recovered and said “dashi” (again).
For his last piece, he sang “Only Then,” a Roy Kim original. He was again out of tune and his voice cracked but fans encouraged him by shouting “gwenchanayo” (It is okay.)
Known to be shy and unassuming despite his fame, Mr. Lee was very charming with his Filipino fans, many of who devote hours to watching and re-watching his TV series. He gamely accommodated requests for hugs and handshakes and was visibly amused by Ms. Sanchez, who was a self-confessed fan.
The audience was slightly disappointed that he did not dance, as he has in the other fan meetings. Many were expecting him to dance Psy’s “New Face” but since he has left YG Entertainment (the same agency as Psy) early this year, he may have deemed it inappropriate.
The main fan meeting segment lasted barely two hours but the fun extended to the high-touch and photo sessions that followed.
Lee Jong Suk has certainly come a long way from that gay musical prodigy he played in the Hyun Bin-Ha Ji Won-starrer, Secret Garden. Imperfections aside, his impressive acting has made him one of Korea’s most sought-after artists and commercial endorsers. Manila was lucky to have a chance to see him before his inevitable two-year hiatus. But having already established himself in the Korean entertainment industry, his followers will surely — and patiently — wait for his return.
As for his Manila stint, he has certainly set a fan meeting precedent that may be challenging for his Korean contemporaries to follow. Actors Park Bogum and Lee Joon Gi are reportedly due for their respective fan gatherings in the Philippines next year. Crank Up is a tough act to follow.