SME's Responsible for the Internal Conflict Between the TVXQ Members

31 Mar 2010

SM Entertainment is responsible for the internal conflict between Dong Bang Shin Ki members. – Interview with President Kang, CreBeau.

Recently, the police have finished the investigation for CreBeau's lawsuit against SM Entertainment. The lawsuit documents have been sent to the Seoul Central District Prosecutors’s Office, and at the same time, President Kang has voiced out his unhappiness about this whole issue.


*Irrelevant parts omitted*

On that very day, President Kang also revealed some information from the investigation.

Trade Committee Investigating All Celebrities In SM

The Fair Trade Committee (FTC) has launched an investigation regarding all the celebrities associated with SM Entertainment (SM) regarding the accordance of their contracts to the FTC's regulations and many fear that a 'Second TVXQ dispute' will arise.

According to the office of Jo Mun Hwan (member of the Grand National Party). the FTC has instigated an investigation of the contracts of 53 artistes of SM including Girls Generation, Super Junior and TVXQ, whose three members (Xiah Junsu, Micky Yoochun, YoungWoong Jaejoong) are locked in a legal dispute with the agency.

SM Entertainment officially investigated for unfair contract terms!

Korea’s Fair Trade Commission (KFTC) has announced that they are currently investigating all celebrities bound to SM Entertainment regarding unfair contract terms, suggesting that “a second TVXQ scandal” like event may occur.

According to One Nation’s Jo Moon Hwan, it was revealed that KFTC is investigating cases of unfair contract terms in SME idols such as TVXQ (including Junsu, Yoochun and Jaejoong who are currently in legal disputes with their management company), SNSD, Super Junior, etc. for a total of 53 SME celebrities.

Jo Moon Hwan stated that the question and answer document received from KFTC specified investigations for all SME affiliated individuals for reasons related to a delay in taking care of TVXQ’s legal case. KFTC expressed,

[Rumor] 6 Members Of Super Junior File Against SM

T/N: This document is a request from Hangeng's lawyer to ask for confirmation that the Seoul District Courts received their documents relating to the case.
The Seoul District Courts confirmed that they received it. - jeeelim5@tohosomnia.net

T/N: I am translating all the Hangeng/Super Junior VS SME articles, as they might become relevant to the JSC case in future.

[Sina Entertainment News] The day before, Hangeng, the only Chinese member of Asia's super popular group, Super Junior, filed for a termination of his "exclusive contract" with SM Entertainment. According to the latest news from Korea, Hangeng is not the only one who filed the lawsuit. Other Super Junior members have also filed a similar lawsuit, and they include: Lee Teuk, Yesung, Kangin, Eun Hyuk and Donghae. The only reason why news about Hangeng was exposed first, is because of his nationality.

SM-TVXQ Current Exclusive Contract Released

We will reveal the exclusive contract SM Entertainment holds with its celebrities. Although this contract is the one between TVXQ and SM, it can be inferred that it is almost a basis contract for all the others. Also, as SM stated that the income division for TVXQ was the best they offered, one can surmise that the content of the contracts of other groups such as Girls' Generation, Super Junior etc. will be worse.

In the contract, it states that TVXQ must pay for all of the expenses required for their activities and this implies the wages for their managers and road managers. "TVXQ must pay for their travel fees and rent fees, as well as their meals, make up and coordinators' wages, dance crew and any other stage crew costs. They must also pay for the wages of their managers' monthly wages (The wages of the manager is 800,000 per month and the wages of road managers is 600,000 per month, and this increases by 10% every year.)"

CreaBeau speaks out on DBSK Issue

It seems we finally have word from the company that seems to be tangled in this mess.

When the TVXQ / DBSK / Tohoshinki controversy first began, the three members and their lawyers clearly stated that the three members’ investments in the CreBeau cosmetics line did not have any relevance to the court case. The core of the controversy was the legal issues of the slave contract. In SM Entertainment's opening statement, they stated that the lawsuit was because of the cosmetics issue.

To clear up the confusion, Kang Suk Won, the President of the Korean branch of CreBeau (Wishop Plus) was interviewed. Kang has already sued SME’s CEO Kim Young Min for slander to the Seoul Central Court on October 4th, 2009.

Kang said, “Although this case is obviously to fight the unfair profit splits and the conflict between the members and SME, SME is trying to push the blame onto CreBeau.”

Kang went on to reveal that the three members have only invested approximately 70,000 dollars, 60,000 dollars, and 40,000 dollars respectively. This amount, he said, was not enough to earn the three members rights to ownership of the business, let alone a big part of the profit.

Trio Lawyer: SM must stop their devious

Yoona of Girls' Generation and the members of TVXQ are being issues, for they are selected to be witnesses of the parliamentary inspection of the administration which will proceed most probably on the 5th of October.

Seung-deok Kho and Mun-hwan Jo, members of the Grant National Party, have requested Jaejoong, Junsu and Yoochun of TVXQ, Yoona of SNSD and Lee Sooman, to be witnesses regarding the unjust contracts against entertainers at the Administration of Inspection of the Fair Trade Commision.

Parties concerned are claiming that even if they are selected as witnesses, the chances of attending the parliament is very small.

Credit: OneTVXQ.com