A Seoul court settled a local dispute between management agencies following apparent moves by China to ban South Korean performers from operating in the country, records showed Monday.

The Seoul Central District Court ruled against a local KOSDAQ listed K-pop management agency that filed a suit demanding the return of 260 million won ($222,700) in payment made to another entertainment firm. 

The contract called for the plaintiff, identified only as "management agency A" to get exclusive control over all Chinese operations of the other company's girl group.

Records showed that there was a falling out that resulted in the lawsuit being filed for the return of the payment made, with management agency A claiming that Beijing's effort to prevent South Korean entertainers from operating in the country constituted a valid reason to nullify the original agreement.

China has never acknowledged any sort of ban, but in 2016, 42 South Korean K-pop stars were barred from performing in the country after Seoul announced it would deploy an advanced US missile defense system on its soil. 

China has strenuously opposed the deployment of the Terminal High Altitude Area Defense, claiming it compromises its national security. 

South Korea has countered that THAAD is defensive in nature and only aims to deal with North Korea's evolving nuclear and missile threat.

The contract has provisions for the agreement to be scrapped in the event of war, natural disasters and changes in governmental restrictions that are beyond the control of companies involved.

The court said that while it realizes that Beijing seems to be arbitrarily canceling activities by entertainers, this does not mean that local stars will never be able to perform in the country.
  
"The plaintiffs' calls, citing clauses that can nullify the contract, cannot be accepted in this instance," the court said. 

The ruling marks the first time that a local court has passed judgment on supposed restrictive actions being carried out by China, with local sources predicting many other cases likely to follow down the line as management agencies and performers report losses or suffer from cancellations. (Yonhap)