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Sunday, September 06, 2009
[Lawsuit] TVXQ’s Japanese Income Division; Each Member Received “150 million Won”
10:06 AM


Click for full size

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.”

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]
Translations: jeeelim5@tohosomnia
Shared: imeem.com

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Friday, September 04, 2009
[Lawsuit] Idols Afflicted By Long-term Contract
6:19 PM

A round up of the court case against SM Entertainment

Coverage for the past 1 month disbandment crisis issue for Korean male group, TVXQ. Shouldering the responsibility of bringing attention to Korean music, and taking on the role as the Stars of Asia, with their singing ability and diverse dances in K-POP. [Seoul Nishiwaki Shiniti, Nakayama Hiroshi]

According to the Korean media reports on the disbandment crisis, 3 out of 5 members filed for a provisional disposition with the Seoul Central District Court, against their company, seeking to terminate their exclusive long-term contract.

“Used as a tool by the company to the point of exhaustion”,”The 13 year exclusive contract is actually a life-long contract” — Yuchun (23), Junsu (22) and Jejung (23), in a document presented by their lawyers, said that their plight is a long and winding road. It has been 5 years since their debut in 2004, and they criticized the “one-sided schedule management” and long-term exclusive contract.

Also, it was exposed that up to February this year, that only if their album sales hit over 500,000 copies, will they be paid 10,000,000 Won (roughly ¥750,000) each when they release their next album.

Their company argued that they “have been in the red since their debut. The revenue division have also been amended and even gave them luxury cars as a bonus”, and that they will have no group schedules planned in Korea for now.

This lawsuit also affected the company’s stock prices, and representatives of the fans said that “the office is violating the human rights of the members”, and a petition battle took place outside the National Human Rights Commission where they collected 120,000 signatures and submitted the petition to the National Human Rights Commission.

A Seoul entertainment reporter explained that, “There are many cases in Korea where idols are made to sign over 10 year contracts with their companies.” Talents that can sell and are independent frequently change management companies. However, for “idols”, they will age, and as their 2 years of compulsory military service is not included in the contract, this 13 year contract is more like a “lifetime contract”.

On 21 August, on the first day of the proceedings at the Seoul Central District Court, the court recommended settlement. Both parties “do not want them to disband”. The entertainment reporter from previously also said, “The earnings from Japan is complicated and the chances of disbandment is 7 to 3.” (T/N: Unsure about this particular line)

So far, Tohoshinki have a record of having 6 of their works on the top spot of the Oricon Weekly Singles Ranking. The first foreign artist with so many successful number ones.

Hazime Katsu, an entertainment reporter, said, “Tohoshinki’s existence in Japan is something like SMAP. They had a sudden explosion of popularity in Japan even though their relationship with their company turned sour, and I was surprised to hear that the Korean management is so streamlined.”

Tohoshinki’s management company in Japan, AVEX Entertainment, said in a press release that, “from what the Korean side said, ‘basically (3 of) the members and the law firms have said that they will carry out their Japanese activities.’”

From the 5th onwards, please expect the sale of their [Miniature CD Collection] and from the 9th, their CM for tablet candy will go on air.

Source: [mainichi.jp]
Translation credits: mandasoh@tohosomnia.net

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[Lawsuit] Chariman of Cosmetics Company that is Suing SM: “It’s just a simple financial investment.”
7:25 AM


Click for full size
“The three members of DBSK, each invests about ₩ 70 million, 60 million, and 40 million.”

The CEO of CREBEAU cosmetics company, Kang Seok-won met SM representative Kim Young-min on the 4th at Seoul central district prosecution office for defamation issue has been accused to SM.

Earlier on the 2nd, he met reporters at the company headquarter in Seocho, Seoul. “The case here is about the long-term distribution contract that reveals an unfair distribution income. However, SM Entertainment distorted the nature of dispute and pointed our company as the main cause.” He puked a resentment.

“Since last July, SM requested a content certification by fact-checking the investment information about DBSK members who invest in our company. The members are only investors. There’s no such intellectual property involved in which SM has been concerning about. We have enough stated our position without distorting the truth. The announcement about members’ investment information has been passed.”

This is what DBSK members’ investment is about. According to Kang Seok-won on the 4th, each member invested about 70 million, 60 million, and 40 million won. Simply by seeing from the equity ratio, they won’t be able to participate in company’s management.

Kang explained further, “SM officials had visited our office in China twice last May for the purpose of investigating pictures rights that are used on the product sold. Those (SM) people need to cross check their facts and stop distorting the nature of the case. It’s an irrelevant asserts and they’ll only find faults in their investigation.”

About the rumor that ‘members investing in cosmetics business was allowed by SM’, Kang said, “The members said directly themselves, ‘if we’re not allowed to invest here, there won’t be any possibility of us to invest at all.’”

T/N: Equity ratio is amount of investment divided by total company equity. Unless one’s investment reaches 20% – 50% of company’s total equity, they won’t have significant control over company’s policies.

source: ohmynews
cre/summarized trans: sharingyoochun@wordpress
shared by: hanleidbsk

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Wednesday, September 02, 2009
U-Know Yunho: “I don’t want to believe all negative rumors related to TVXQ”
1:36 PM

U-Know Yunho of TVXQ said, “Everything related to the work of TVXQ, I hope they can be settled down amicably. There are a lot of negative rumors which should not be believed.”

August 2nd, 2 p.m at Seoul Grand Hyatt Hotel for MBC ‘Heading To The Ground’ show conference, Yunho said, “I’m not able to tell you anything right now, but basically I’m hoping everything to be resolved amicably in rational way.” This is the first time he said a comment regarding TVXQ legal case.

“When I was doing a late night drama shooting, I received many cheerful text messages from the members, saying ‘Do your best.’ or ‘How was your day?’ I got texts like that. “Because this is the first time, I really want to support.” and I’ll answer ‘then please support’” he conveyed the friendship between the members.

Towards all TVXQ related questions, “I don’t know why only the negative rumors that had been spread. A lot of people seem to have negative thoughts. Most vicious rumors on the internet. Whether it’s wrong or not, I think those need to be clarified. Do not believe any negative rumors, and from my side right now, I’m just hoping everything to be solved amicably.” he said in composed.

Meanwhile during this TVXQ hardship period, over last month, Yunho concentrated only for drama shooting. On August 31st, more than 4000 fans gathered at Seoul World Cup Stadium to participate in the drama’s open shooting schedule. Yunho is taking role as the drama-born football player Cha Bong-gun.

source: rinny@ asiae.co.kr
trans by: sharingyoochun@wordpress

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Tuesday, September 01, 2009
[Lawsuit] “SM unfair contract” Disclosed
11:54 PM

TVXQ Jaejoong, Yoochun and Junsu who had submit a request for the relevant documents for the hearing is on hold, although Seoul district court had accepted the 3 members request to get evidences relating to this hearing, however, it is said from a SM representative, they’re given 20 days in notice to produce all relevant documents which was supposed to be submitted on the 26th, wasn’t submitted.

The 3 members had requested for this, because they felt that these documents would be the best evidences to show their unfair treatment from SM on the 21st August hearing; it was one of the most important evidences. The judge then expressed “after checking through the documents that would submitted on the 26th, we’ll then hold another hearing which would take place 3 weeks later, 11th Sept.”

The relevant documents include THSK activities payment, contract and more, these documents could be used against SM who had claimed that after TVXQ debut of 5years, they had earned up to 498 billion won and however SM has a earning of 1487 billion won, this can be said that the above documents is to check the details of each earning.
During this period, TVXQ fans had found flaws in the sales of the albums, and like the court, the fans are wondering too, how much did TVXQ exactly earn within these 5 years, and this had created quite a stir in the society.

SME accepting this request was difficult too. because if they were to release the said documents which includes SME investment in the trainings etc; it could eventually reveal the methods they had used to train their trainees which they named it as the “top-secret documents”.
Representative had said “SME is a up-trend company, who had compiled all financial status and revealed it to the necessary people, therefore, to give out the information that the 3 members had requested are really tough.”

Majority of the fans expressed that they had been suspicious of the earning of TVXQ during this 5 years. Their earning goes by the sales of album, activities, CF, there’s also SM yearly album, DVD and more which could say that these sales are earning them billions.
fans had submitted a petition on the 28th saying the unfairness of contract had invaded the rights of TVXQ and this had created pressure in SME.

Although TVXQ and SME are having conflicts, and of this money conflict, this created a “reality game”, and in the near future, this war might still continue for a little while more.

Source: daum
Translation: mel @ OneTVXQ.com
Credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }

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Monday, August 31, 2009
[Lawsuit] 2009-08-31 SME “Regarding The Evidence That Was To Be Submitted, We Were Only Waiting For Answer From The Courts”
4:04 AM

SM Entertainment, the agency that is currently in a dispute with three members of TVXQ, Xiah Junsu, Micky Yoochun and YoungWoong Jaejoong, released a statement on the 31st regarding the agency’s decision not to submit any documents for the trial stating that, “We were only waiting for an answer from the Courts.”

As soon as the Preservation of Evidence request was accepted, SM Entertainment told the Courts that, “The range of documents requested is too broad and the time to gather them too short,” and also requested to the Courts that, “If the Courts narrow the range down to one section or part, we will submit those documents.“

A representative of SME stated that, “The reason we haven’t submitted any documents relevant to the case yet is because we did not receive an answer from the Courts saying what particular kind of documents we should submit. It is not because we fear that company secrets may be revealed.”

The Courts will be receiving documents relevant to this case until they reach a decision next month.

source: [newsen+DNBN]
translation credits: jeeelim5@tohosomnia.net

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[Lawsuit] SM Did Not Hand In ‘TVXQ Documents’
2:10 AM

The Preservation of Evidence request that TVXQ’s YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu has not been followed through.The Seoul District accepted the three members’ request and asked their agency SM Entertainment to hand in all documents relevant to this trial. However, it has been found that SM has not hand in these documents even though the 20 days the Courts gave them expired on the 26th.

These documents are crucial as the Courts even stated at the first hearing on the 21st that they needed documents relevant to this trial to come to a decision. The Courts stated, “After going through all the documents that must be submitted by the 26th, the Courts will come to a decision three weeks later on September 11th.”

This is because these documents will determine whether SME’s claim that TVXQ earned 49.8 billion Won as well as their claim that SME earned 148.7 billion Won is true or not. This means that TVXQ’s income and output will all be revealed. Many fans have stated that the amount SME stated was TVXQ’s total earnings was very questionable. A lot of attention was focused on the trial as many believed they would be able to reveal and eliminate all monetary problems and rumors about the agency and the group.

But in truth, it is hard for SME to adhere to this request. If SME submits all documents including account books, receipts and transaction, all their expenses and true income will be revealed. The secrets that may be revealed include ‘company secrets’ that SME has developed over the years to debut singers.

One representative said, “We have already shown as much as we can for this trial. It is impossible for us to hand in all our documents relevant to this trial.”

Many fans have stated that the amount SME stated TVXQ earned was very questionable. They say that all the money from albums, events, CFs, photobooks, DVDs, and other services adds up to a staggering amount. Fans handed in a petition to the Human Rights Commission of Korea on the 28th stating that SME was violating the human rights of TVXQ with their exclusive contract.

source: [hankooki+DNBN]
translation credits: jeeelim5@tohosomnia.net

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Sunday, August 30, 2009
[Lawsuit] News : Cosmetic Company Lawsuit Case: Full Investigation
11:11 AM

Click for full size

Seoul’s Gangnam Police Station on August 27th has lauched a full investigation regarding lawsuit filed by cosmetic company, CREBEAU in which DBSK members Jaejoong, Yoochun, and Junsu have their investment.

The public prosecutor from Seoul police office section 7 (head: Kim Cheong-hyeon) directed the investigation according to letter of complaint to SM Entertainment from CREBAU officer who requested for a full investigation of complainant’s identity before court review next week.

This police investigation is held as an instant basis to decide whether there’s criminality charges in defamation mark that is accused to SM Entertainment as defendant by CREBEAU company.

On August 4th, CREBEAU company where in DBSK members Jaejoong, Yoochun, and Junsu have their investment in filed a lawsuit against SM Entertainment for a defamation issue.

Source: jjw@fnnews.com Translation: sharingyoochun@wordpress

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[Lawsuit] News : 3 TVXQ Members’ Investment Cosmetics Company Sue SM for Defamation Issue
11:06 AM

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Seoul Central District Court officer revealed on August 26th that a representative of CREBEAU (위샵플러스) cosmetic company had filed lawsuit against SM Entertainment in charge of defamation issue on August 4th.

CREBEAU representative said, “The problem that is filed by 3 members who are also investors in our company is something to do with the unfair distribution income and to terminate the exclusive contract effect. However, SM keeps distorting the essence of the issue by saying that the main reason of their lawsuit is related to the cosmetic company. This is definitely a false representation and inflicts a serious libel to our company.”

Source: pretty@yna.co.kr
Translation: sharingyoochun@wordpress

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[Lawsuit] News : SM x TVXQ Lawsuit: “Will The Evidences Application be Accepted?”
11:02 AM

Click for full size

As had been reported, besides the provisional disposition to terminate exclusive contract effect, 3 members of DBSK namely Jaejoong, Yoochun, and Junsu also submitted Preservation of Evidence request so that they could calculate the exact amount of their income.

However, in the first hearing held on last August 21st, SM responded regarding the Preservation of Evidence request, “This immediate appeal for Preservation of Evidence can’t be executed.” SM expressed disapproval regarding the submission request. The company explained that DBSK income receipts along with other documents and materials needed for this settlement is company’s trade secret. And if they’re to be exposed to the media, it can lead to fatal effect.

Regarding the problem, the court described an “in camera” system to invalidate SM’s claim of a fatal risk. The “in camera” system is the process in which the viewers of the evidences are to selected/limited number of people only. Because of this, DBSK’s payment issue can be resolved and the current conflict can be raised.

SM officials therefore approved the DBSK’s ‘Preservation of Evidences application’ and the submission deadline is tomorrow, August 26th.

The court judgment whether SM’s application is received as valid evidences or not is to be determined on Friday, August 28th.

Meanwhile, on the same day (August 28th), DBSK fanclub Cassiopeia is showing support to their idol by submitting petition which is signed by approximately 121,073 people at 1:30 p.m to National Human Rights Commission. “DBSK members have been victims of serious human rights violation and now are seeking way to escape from it. We asked the help from National Human Rights Commission to give human rights protection for DBSK members through their court hearing.”

On last August 20th, Cassiopeia had already submitted their petition which was already signed on-line by 120,000 people from August 12th to 18th (six days) to Seoul Central District Court to support the terminate of unfair contract.

Source: diodeo + newsen Summarized by: sharingyoochun@wordpress

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Saturday, August 22, 2009
[Lawsuit] 2009-08-21 SM "We've Lost 15 Billion Won+ In Image Damage Because Of This Trial"
11:00 AM

SM Entertainment (SME) stated that they were the only ones who received damages because of the request for the suspension of TVXQ's exclusive contract.

On the 21st at 10:20 am, the first hearing for the lawsuit between SM Entertainment and the three members of TVXQ's Youngwoong Jaejoon, Micky Yoochun and Xiah Junsu, began.

During this hearing, SME's lawyer stated, "In the case of the three members of TVXQ, they don't have any dissatisfied feelings towards this lawsuit as it got them out of concerts and advertisements that they did not want to participate in," and "But in the case of SME, they had to pay compensation for said canceled events and future scheduled events with 8 billion Won to pay domestically and 15 billion Won to pay if overseas activities are calculated. Not only will SME suffer monetary loss, the image of SME has also been hit because of this trial."

SME's lawyer stated that the focus of this lawsuit was not the period of the exclusive contract or the unfair income division, but the cosmetic company that the three members were involved with. He explained that the only two reasons SME asked the three members not to participate in such a venture were because such a venture went against their exclusive contract and because the venture could hit TVXQ's image in a negative way.

SME's lawyer also said, "In reference to the length of their exclusive contract, the special quality of the entertainment business needs to be considered," and "Even in the recommended exclusive contract guidelines released recently, there are exceptions when it comes to singers."

He also said, "The three members claim that they never were told of exactly how much they earned but SME revealed this amount to the members every six months and the members even signed these income documents."

On a side note, the three members of TVXQ filed for an Exclusive Contract Validity Suspension and Provisional Disposition Request against their agency SM Entertainment on July 31st. They also filed for a Preservation of Evidence request to be able to calculate the exact amount of TVXQ's income.

The three members asked for a cancellation of their contract due to the unlawful clauses in said contract but SM Entertainment stated that the three members were filing this lawsuit because of the cosmetic company they were associated with; both sides show no signs of backing down. TVXQ's leader U-Know Yunho and youngest leader Choikang Changmin did not participate in this lawsuit.


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

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Friday, August 21, 2009
[Lawsuit] TVXQ: " We Want This Lawsuit to be Finished as Quickly as Possible"
10:58 AM

TVXQ's YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu have stated that they wish for their lawsuit against SM Entertainment to finish quickly.

Both sides stated their position at the first hearing held on the 21st at 10:20 am.

The members' side pointed out the unlawful problems in their exclusive contract as well as the doubtful income division made by SME.

SME's side stated that they were in red figures for four years after TVXQ debuted, said that they had divided the income well and that what the three members were saying was false.

Both sides stated that they wanted this lawsuit to be solved as quickly as possible. The judge stated, "If both side would like to set a settlement date that will not be open to the public, that can be arranged," and urged both sides to come to a mutual agreement.

It can be seen that the judge believes it will be better for the two sides to start fresh as quickly as possible rather than have a tiring fight in court.

On the other hand, on the 20th, 120,000 fans submitted petitions against SME's unlawful contract to the Seoul District Courts where the trial is being held.

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

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[Lawsuit] 2009-08-18 Yoochun, jaejoong, Junsu "Focusing completely on the First Hearing"
10:52 AM

The three members of TVXQ who are currently in a dispute with their agency SM Entertainment, YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu are completely focused on preparing for the first hearing.

On the 17th, a representative of Sejong law firm, that is aiding the three members, told Money Today Star News that,
"We are preparing for the first hearing that will be soon," and "TVXQ's stand and SME's Stand on this situation have not changed at all."

He also said, "As they are still under SM Entertainment, all five of them are completing the shcedules they have been given."

The three members' lawsuit's first hearing will be held on the 21st this month.

The three members of TVXQ filed for an Exclusive Contract Validity Suspension and Provisional Disposition Request against their agency SM Entertainment on July 31st asking for their release from their exclusive contract. They also filed for a Preservation of Evidence request so that they could calculate the exact amount of their income. TVXQ's leader U-Know Yunho and youngest member Choikang Changmin did not participate in this lawsuit.

Source: [star news+Yuaerubi]
Translation credits: jeeelim5@tohosomnia.net

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Monday, August 03, 2009
[Lawsuit] Truth behind the current event-SM Entertainment's unfair contractual agreement
10:45 AM

동방신기-SM 불공정 계약
TVXQ – SM’s unfair contractual agreement.

2009 년 7월 31일 금요일 밤, 동방신기의 세 멤버, 영웅재중, 믹키유천, 시아준수가 소속사 에스엠 엔터테인먼트를 상대로 전속 계약 효력 정지 가처분 신청을 냈습니다. 현 동방신기의 소속사 에스엠 엔터테인먼트는 이 모든 일의 발단은 세 멤버와 관련이 있는 화장품 사업 때문이라며 사건의 본질을 흐리고 있습니다. 이에 동방신기 팬들은 이 모든 일의 원인은 동방신기와 SM이 맺은 불공정한 전속계약과 부당한 대우에 있다 생각하며 SM과 동방신기 사이에 맺은 계약에 무슨 문제가 있는지 알리려 니다.


On Friday night of 31st July 2009, three members of TVXQ, Hero Jejung, Micky Yuchun and Xiah Junsu have filed the application for provisional disposition, seeking for the suspension of the effect arising from the exclusive contractual agreement against SM entertainment. TVXQ’s current managerial company SM Entertainment is tarnishing the very cause of this event by claiming that the current event was triggered because of cosmetic business that these three members are involved with. TVXQ fans firmly believe that all causes behind this event are down to unfair treatment and unfair contractual agreement that exists between TVXQ and SM Entertainment. Therefore, we are seeking to make a clear statement to let everyone know of what problems are there in the contractual agreement between SM and TVXQ.

전속 계약 기간 13년?
Exclusive contractual agreement period for 13 years?


이 번에 영웅재중, 믹키유천, 시아준수, 세 사람이 전속계약 효력정지 가처분 신청을 내면서 동방신기와 에스엠 엔터테인먼트 사이에 맺은 계약의 내용 일부가 기사화되었습니다. 이에 따르면 동방신기가 맺은 전속 계약 기간은 군 입대를 제외한 13년이며, 에스엠과의 전속 계약 기간 중에 동방신기 멤버가 군 복무를 하게 된다면 2003년 12월 26일 방송에 데뷔한 동방신기의 전속 기간은 2018년, 거의 2019년이나 되어야 끝난다는 이야기입니다. 이는 현재 공정거래위원회에서 권고하고 있는 최장 기간 7년을 훌쩍 뛰어넘는 기간이며, 상식적으로도 이해할 수 없는 노예계약이라 불려도 이상할 것이 없는 장기 계약입니다.

Some parts of the contractual agreement existing between TVXQ and SM Entertainment were publicized as Hero Jejung, Micky Yuchun and Xiah Junsu filed the application for provisional disposition seeking for the suspension of the effect arising from the exclusive agreement. According to these, exclusive contractual agreement period TVXQ have been signed for are for 13 years (excluding military service period). Hence if any member of TVXQ was to serve the military service, their exclusive contractual agreement will only come to an end in the year of 2018 or 2019 bearing in mind that they have debuted on 26th December of 2003. This period is much longer than the recommended period of seven years advised by the current Fair Trade Committee. This is certainly a long term contractual period which could even be regarded as a ‘Slavery contract’ and anyone with a common sense would find it hard to understand.


본인들의 수입 내역도 모른다?
Even members are not aware of exact details of their income?

7 월 31일, 동방신기의 세 멤버가 전속계약 효력정지 가처분 신청을 내면서 8월 1일 증거보전을 신청했습니다. 여기서 신청을 한 증거의 내용은 '신청인의 연예활동에 관련된 수입 및 지출 내역을 파악할 수 있는 회계장부, 계약서, 영수증, 전표 등 문서 일체'이며 이 증거 보전 신청을 한 이유는 "멤버들이 그간 수입 내역을 소속사로부터 정확하게 확인한 적이 없다고 했다"며 "일반적으로 전속계약 분쟁이 있을 때 계약 관계를 정리하면서 손해 배상을 청구하는데 멤버들의 그간 수입내역을 명확히 확인하지 못해 이 같은 신청서를 제출하게 됐다"고 세 멤버의 법률대리인인 세종의 임상혁 변호사는 밝혔습니다.
지금 항간에는 에스엠 엔터테인먼트와 동방신기 사이의 수익 배분이 7대 3이다, 9대 1이다 등등 많은 이야기가 오가고 있습니다. 그러나 그러한 이야기는 동방신기 멤버 본인이 자신들의 수입에 대해 정확하게 모르는 상황에서는 아무 의미가 없는 것입니다. 말은 7대 3이라고 하면서 그 3을 제대로 지급해주었는지 아닌지도 알 수 없다는 거죠.

On 31st July, three members of TVXQ have made an application for provisional disposition seeking for the suspension of the effect arising from the exclusive agreement. Furthermore, on 1st August, they have applied for perseverance of evidence. Contents of evidence that have been applied for perseverance are all documents showing the details of “applicant’s incomes and expenses arising from their activities which are recorded in the format of an account book, contractual agreement, invoices, various order slips etc”. Three member’s legal representative lawyer Sanghyuk Rhim from Shin & Kim law firm stated that the reason why members have applied for the evidence perseverance is that “they have never been able to clearly confirm the details of their income details from SM Entertainment” hence “although it is the custom to base the level of compensation for damages on the basis of contractual agreements should a law suit arise for Exclusive contractual agreement dispute, as members have not been able to clearly confirm the details of their income, it has been necessary to for this application”.

There are rumors being spread that income distribution between SM Entertainment and TVXQ is 7:3 or 9:1 and many other stories. However, the exact detail of this story is of no use as TVXQ members themselves are not even aware of their exact income details. Although it could have been claimed by SM Entertainment that the income is 7:3, it is not yet confirmed if members did actually receive their entitled 3.


에스엠 엔터테인먼트의 불공정 계약
SM Entertainment’s unfair contractual agreement

에스엠 엔터테인먼트는 전속 계약과 관련 여러 차례 소송을 치렀으며 공정거래위원회로부터 시정 명령을 받았습니다.
그 중에 2008년 11월 20일 이데일리에 보도된 소속 연예인과의 계약에 관해 공정거래위원회로부터 적발된 조항 중 한 가지를 인용해 보겠습니다.(f1기사링크)

SM Entertainment has already been involved with various law suits in relation to exclusive contractual agreement and has been advised and guided by Fair Trade Committee on numerous occasions. Of these events, we will look into one of the clause under the their exclusive celebrity’s contractual agreement which was disclosed by the Fair Trade Committee and reported on 20th November 2008 in E-daily newspaper. (f1 article link)

- 본 계약기간 중 을이 전조의 국내외 연예활동과 관련된 일체의 권리 및 결과물에 대한 모든 소유권, 저작권, 저작인접권, 초상권, 상표권 등 모든 권리는 본 계약기간 및 계약기간 만료 이후에도 갑에게 귀속되며, 을은 갑에게 동 권리에 관한 일체의 주장 내지 권리행사를 할 수 없다.

During the current contractual agreement period, any kinds of rights including all the ownership, copy right, the right to one’s portrait, trademark rights etc arising from entertainmental (performing, apperaing on TV, Commerials etc) activities taking place both at national lever and internationally, will belong to the SM Entertainment. This will continue to be the case even after the end of the contractual agreement period. The artist will not be able to seek or claim the same kind of legal rights over these.

- 앨범에 수록되지 않은 미발표곡에 대한 모든 권리는 갑에게 있으며, 갑은 이를 자유로이 사용할 수 있다.


Any rights over songs that are not released in the album belongs to SM Entertainment and the company has every right to use it in the way it wishes to.

이 말인 즉슨 동방신기 멤버들이 부른 여러 노래는 물론이요, 동방신기 멤버들이 직접 작곡하거나 작사하여 발표한 곡의 저작권마저 에스엠 엔터테인먼트에 귀속이 된다는 말입니다. 즉 한국 정규 앨범에 실린 동방신기 멤버들의 자작곡은 물론이요, 콘서트에서 발표하여 부른 자작곡들의 저작권이 에스엠 엔터테인먼트 측에 있으며 이는 전속계약이 끝난 이후에도 마찬가지라는 이야기입니다.

This means that all the legal rights including the ownership and copy rights belong to the SM Entertainment for all the songs that TVXQ members have sang, or songs that are composed and written by TVXQ members. On more clear note, all the self composed and written songs by TVXQ members that were released as part of official Korean albums, or songs performed in the concerts (also composed and written by members) have their copy right and legal ownership belonging to the SM Entertainment. This will continue to be the case even after the excusive contractual agreement period has come to an end.

두번째 조약에 의거 발표되지 않은 미발표 자작곡들 또한 모두 에스엠 엔터테인먼트에 귀속됨을 뜻합니다.

According to the second contactual clause, legal rights and copy rights for any unreleased songs written by members also belong to SM Entertainment.

위의 두 조약은 가수로서의 창작물이외에도 동방신기의 이름으로 만들어 내는 창작물(곡 글 을 포함한 모든 창작활동)을 포함하고 있습니다.
또한 가수의 생명이라 할 수 있는 자작곡의 소유권 마저도 소속사가 가지고 가는 부당계약의 표본입니다.

Above two clauses refer to all creative activities that are worked on with the name of TVXQ, ranging from songs written by them as singers to any kind of writings they do. Also this is a exemplary clause which shows the unfairness of this contractual agreement which states that the copy right of the song even written by the member will belong to SM Entertainment.

같은 날 뉴시스에 보도된 기사에는 연예인의 모든 활동을 기획사에서 일방적으로 승인, 지시할 수 있도록 한 규정도 있었다고 나옵니다.
즉 개별 멤버의 의사와 상관없이, 아무리 몸이 아프고 피곤해도 일방적으로 회사에서 스케줄을 강요할 수 있다는 말입니다. 또한 멤버들이 관심을 갖고 하고 싶어하는 일, 관심 있는 분야에 대한 진출을 회사 측에서 일방적으로 막을 수도 있다는 말입니다.(f2기사링크)

The news article reported on the same day shows that there was other clause showing that SM Entertainment could direct and control all the activities of the celebrity without consulting the individual first. Hence, it is possible for the company to force them to work according to the schedule whether the individual is tired or ill, regardless of the individual member’s will. Furthermore, the company will have the power to pressure from the member to pursuing their own interest or advancing into the area they are interested.

또 한 아시아투데이 2009년 6월 9일 기사에 의하면 10대 연예 기획사 중 가장 불공정 계약이 심한 곳 중 하나로 에스엠 엔터테인먼트가 거론되고 있습니다.(f3:기사링크) 이 기사 내용을 살펴보면 2008년 11월의 이데일리 기사에서 시정 명령을 받은 계약서 조항이 다시 한 번 적발된 것을 알 수가 있습니다. 이로 인해 과연 공정거래위원회에 의해 적발되어 시정 명령을 받은 불공정 계약 조항들이 수정되고 있었는지에 대해 의심을 하지 않을 수 없습니다.

Furthermore, according to the Asian Today’s article reported on 9th June 2009, SM Entertainment is considered as one that has a serious problem for unfair construal agreement issue out of the country’s top ten entertainment companies. (f3 article link). By examining this article carefully, it is possible to see that the same contractual agreement clause which was reported by E-daily’s article in November 2008 is disclosed once again. Hence it is possible to doubt whether those unfair contractual agreement clauses which were cautioned by Fair Trade Committee hence disclosed were rightly addressed and rectified.


동방신기-SM 부당 계약이 빠른 시일 내에 수정되기를 희망합니다.
TVXQ – hopes that SM’s unfair contractual agreement will be modified as soon as possible.

다 시 한 번 말하지만 이번 일의 핵심은 동방신기와 에스엠 엔터테인먼트 사이의 불공정한 전속 계약에 있습니다. 이번에 전속계약 효력정지 가처분 신청을 낸 세 멤버, 영웅재중, 믹키유천, 시아준수의 변호사는 인터뷰를 통해 다각도로 에스엠 엔터테인먼트와 대화를 시도하였으나 기존 방침만 되풀이하여 결국 법에 호소하는 사태까지 오게 되었다고 밝혔습니다.

To state again, the very focal point of this event is down to the unfair exclusive contractual agreement that exists between TVXQ and SM Entertainment. It has been stated by the lawyer acting as the legal representative for three members, Hero Jejung, Micky Yuchun and Xiah Junsu (who have filed an application for provisional disposition, seeking for the suspension of the effect arising from the exclusive contractual agreement) have tried through various channels of communication to reach a mutual agreement with SM Entertainment. However, communication was only the repetition of pre existing policies hence they had no option but to seek legal petition.

에스엠 엔터테인먼트에게 요구합니다. 진정 에스엠 엔터테인먼트 측이 동방신기의 활동은 계속되어야 한다는 입장이라면 지금 즉시 효력 정지 가처분 신청을 낸 세 멤버를 화장품사업 운운하며 비방하는 것을 중단하고 성실한 자세로 전속 계약의 불공정 조항을 수정하는 데에 임하십시오. 멤버들 간의 불화나 동방신기 해체를 거론하며 팬들을 불안케 하는 언론플레이를 중단하고 멤버들의 요구 사항에 제대로 귀 기울이십시오.

We have to make a strong demand to SM Entertainment. If they truly believe and want to have TVXQ existing as the group, they should stop criticizing and claiming that three members have filed the application provisional disposition, seeking for the suspension of the effect arising from the exclusive contractual agreement, purely due to the dispute over the cosmetic business. SM Entertainment should pay their full attention to rectify various clauses that are part of unfair contractual agreement. They must stop influencing the media to talk about the group splitting up and suggesting the idea that there is a trouble between members. It should be SM Entertainment’s priority to work on suggestions and modifications that are requested by members.

글쓴이: 핑거쵸님 Written by: Pinkercho
Translated by: londonlady at DNBN



[Additional note by londonlady at DNBN to overseas fans]

- Currently, there seems to be a widespread of rumors and stories about TVXQ. I would like to take this opportunity to assure you all that members of TVXQ are trying their best to keep their promises to their fans. It has already been reported that they will perform according to their schedule for 6th in Japan and in SM Concert. Please continue to support them during these difficult times.

- TVXQ have worked had for many years to establish themselves as a group and as excellent artists. Clearly, working in Entertainment industry has been somewhat overwhelming experience to our members, bearing in mind that they started off when they were still in their teens. However, with their determination they have come this far and is now regarded as one of the best and renowned artist in the world.

- The current event of applying for the provisional disposition is a brave act from three members. Previous SM Entertainment’s bands or other renowned Korean groups have failed to stand up against unfair contractual agreement issue. Hence, there often were break ups of famous groups. TVXQ is trying to make a change in Korean entertainment industry. They are seeking for a positive change. TVXQ would not have started this process without thinking carefully or seeking right kinds of professional advice. Now this is the time for fans around the world to stand by them and support them. TVXQ has been a legend up until now, and yet again, they are moving forward to making another legendary impact in this industry.

- It is more than understandable that fans around the world feels shocked, upset or even puzzle with the current situation. However, we are fans of TVXQ. We have the title of ‘fans’ because we support and love them. Let’s stay strong during this troubled times and support them 100%. Also, only believe and trust what members of TVXQ actually do say but not get influence by media craze. It would be members of TVXQ who are feeling the most pressure right now. Let's trust in their judgment and support their decisions.


TVXQ fighting. TVXQ – we love you.


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위의 전문에서 인용된 기사들을 링크했습니다.

F1: 기사전문링크참조
F2(주소수정했습니다):(기사전문링크참조)
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Sunday, August 02, 2009
[Lawsuit] TVXQ's 1st Court Hearing Ended Today
10:56 AM

TVXQ and SM Entertainment's first court hearing took place today August 21st, 2009 at 11:40am KST.

TVXQ's lawyer stated "TVXQ members are very upset about the entire situation, but hopes that the lawsuit will end well." In addition, "We do not want TVXQ to split up. And even if they do change management companies, there is still a chance that TVXQ will remain together."

SM Entertainment's lawyer stated, "There are no personal grudges against the members, however this lawsuit is an enormous loss to the company, therefore we wish to resolve this as quickly as possible and have TVXQ continue their activities." In addition, SME stated that, "In regards to the members running Chinese based cosmetics businesses, SM only intervened as it could potentially hurt their image. That was the only reason."

The 1 hour and 20 minute hearing over exclusive contract rights and improper compensation is now over, however all parties are required to submit all proof and documentation by September 12th, 2009, in order for the courts to make a final judgment.

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// keep the faith //