Income was divided in the order of Avex-SM Japan-SM-Members… SM Double Acquisition Controversy

An argument that five member group TVXQ, who are currently in a legal dispute with their agency over their exclusive contract and inexact income divisions, earns an extremely low income from their Japanese activities has been put forth.

An influential acquaintance of the three members who are locked in this legal dispute (YoungWoong Jaejoong, Micky Yoochun, Xiah Junsu) stated, “The amount of money TVXQ has earned from when they started their Japanese activities in 2005 till now is a little over 150 million Won per member.”

This is the first time TVXQ’s Japanese activity income division has been referred to in detail.

He explained the income division process in detail saying, “A portion of the money TVXQ earns from their Japanese activities goes to their Japanese agency Avex, and some of it goes to SM Japan. The rest goes to SM Entertainment. Therefore, the members receive only an extremely small portion of the overall income.“

He also added, “SM Entertainment owns more than 90% of SM Japan’s quota and is the parent company of SM Japan,” and conspired that, “Another controversy arises of their Japanese income division because of this.” He stated that, “Since the members have never seen the actual Japanese contract, they have no clue of how the income division is going on between the agencies and are feeling very frustrated with the situation.”

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SM Entertainment owns 93.5% of SM Japan’s quota

Actually, according to the quarterly report SM released in May, SM Entertainment owns 93.5% of SM Japan’s quota (On March 31st).

Even the Civil Society Organization has pointed out that there are problems in the way SM Entertainment divides and calculates the income.

Lee Dong-yeon, professor at the Korean National University of Arts, stated, “The money TVXQ earns from their Japanese activities is first divided by Avex and SM Japan who co-manage the group by 50% each, then SM and SM Japan split the money SM Japan got by 50% each. Therefore, TVXQ only receives a small portion of 1/4 of their income, not a portion of their entire income”.

At the debate that was on the prompt ‘The Problems Regarding the Korean Entertainment Management System Revealed Through the TVXQ Dispute and the Solutions To These Problems’, Professor Lee said, “It can be said that SM Japan and SM Entertainment are basically one company therefore SM Entertainment is using this to acquire twice the amount of money they should be getting from TVXQ’s Japanese income.”

Professor Lee also stated that, “It can easily be seen that we obviously cannot say that TVXQ and SM Entertainment have a fair and just contract agreement when carefully reading through the fine print of the contract and taking into consideration TVXQ’s income division and the preposterous amount SME claims they spend on managing TVXQ (In truth, most of this money is actually not included in the income division.)”

On a side note, it has been found that SME did not adhere to the Preservation of Evidence Request that the three TVXQ members filed that was accepted by the Courts. This Preservation of Evidence Request includes all documents relevant to TVXQ’s activities that would help calculate TVXQ’s actual income that include account books, receipts, transfer slips, etc.

On the 21st, the Seoul District Courts asked SME at the first hearing to hand in all documents relevant to the trial, but SME did not follow through.

SME’s lawyer stated before that, “These documents are all company secrets, and it would be fatal to SME if they were released to the media.”

Source: [newsen+DNBN]
Translation credits: jeeelim5@tohosomnia.net

- dbsknights more added note:
*note from your translator: for those who don’t really know about the Korean currency
150 million Won = around $120,000 dollars*

TVXQ received $120K in 4 years. This means $30K per year….

Labels: AVEX, Japan