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TVXQ sue SM Entertainment
Posted 8/1/09 , edited 8/1/09
I seriously doubt they're going to break up.
Posted 8/1/09 , edited 8/2/09

well idc if they leave SM ....but I hope they stay together
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F / Xiah's Heart.
Posted 8/1/09 , edited 8/2/09
Let's set things straight first.
credits to updated TODAY.

"With all the response and confusion that allkpop has been getting about this whole TVXQ / DBSK / Tohoshinki issue, we hope that this comprehensive list will clear up any miscommunications that may have arisen from information posted previously.

First, the facts:

1. Jaejoong, Yoochun, and Junsu filed a lawsuit against SME (SM Entertainment) in order to suspend their contract.

2. Jaejoong, Yoochun, and Junsu did plan to manage a branch of a cosmetics company. This did NOT however relate nor tie into the lawsuit.

3. Yunho and Changmin are NOT filing a lawsuit against SME along with their fellow three members.

4. SM has been taking anywhere from 70-90% of TVXQ's profits.

5. TVXQ is also signed with AVEX Entertainment (Japanese entertainment label) and still scheduled for A-Nation concerts throughout August.

6. There have been NO talks of disbandment.

Addressing the facts:

1. The lawsuit suspends the three members' contracts while pending. Popular belief is that they want to renegotiate parts of their contracts, POSSIBLY because of SM's disapproval of fact number two.

2. This is a fact, enough said. SM released a statement that "The cosmetics company issue will be resolved", but that statement did not refer to the injunction filed by Jaejoong, Yoochun, and Junsu.

3. They are not, and this is why rumors of a breakup started flying because of this inconsistency within the members. It is just a coincidence that the two are not involved with the cosmetics company are also not filing a lawsuit against SME.

4. Yes but, to an extent, this is not as extreme as many people think. SME does take an unheard of amount from TVXQ, but they also pay for anything and everything the members need. This includes plane tickets, hotel suites, meals, car rentals, etc. This effectively makes it so that TVXQ members do not have to spend a penny while under contract, but it does bind them to SME and prevents them from doing anything that would require large amounts of money (such as splitting from the SM label) without approval from SM. This has not affected the lawsuit at all, as neither TVXQ nor SM has said anything regarding the issue of pay.

5. This fact proves that SM cannot just disband TVXQ without legal repercussions. If SM were to disband TVXQ, AVEX would also lose a lot of money on the situation and would obviously sue. TVXQ also performed without incident today (August 1st) for A-Nation.

6. Nowhere has there been a statement about disbandment or splitting. TVXQ members and SM have not said anything regarding the issue. Mentions of Disbandment are just assumptions by the media and fans at large because of the lawsuit.

Now, the rumors:

1. There has been fighting among TVXQ members which has caused talks of disbandment.

2. Junsu's father was at the head of the preparations to sue SME when SM caught word of the pending lawsuit and proceeded to bully around Junsu.

3. TVXQ members responded on their Cyworld mini hompages with messages suggesting that disbandment was highly unlikely.

4. TVXQ is under the same situation as their predecessors, H.O.T. and Shinhwa (maybe even S.E.S.).

5. TVXQ is in this for the money.

6. Yunho and Changmin have resigned with SM under a new contract.

Regarding the rumors:

1. No, there has not been ANY fighting among TVXQ members and this was clearly addressed in a previous article.

2. This still just a rumor and nothing has been confirmed, but many Korean bloggers have caught a hold of this specific issue and have been discussing, so there is still some validity.

3. Yes, this has been proven to be false. Contrary to popular belief however, allkpop never confirmed this was true and even stated that the pictures were most likely fake. allkpop is trying to keep readers up to date with anything and everything that may arise about this situation. With hot issues like these, getting news up quickly is our first priority and when things are disproven, we will take measures to address the situation. We realize that this is a sensitive issue to many of our readers and we ask that you take everything that is not posted as cold hard facts, with a grain of salt.

4. Although the whole situation may remind some people of what happened with H.O.T and Shinhwa, the circumstances are very different. Many people have many different opinions on this, but the situations are not parallel.

5. The insane split of profits with SM may have something to do with the pending lawsuit, but more than likely not. The 10-30% that TVXQ receives in profits is still more than the average upperclass American citizen makes in 10 years. More than likely, money has no part to play in this lawsuit.

6. Rumors have been going around that the two of them decided to stay with SM but this is confirmed to be NOT TRUE according to the official TVXQ fansite.

Lastly, speculation (NOTE: these are all predictions and outcomes that have been expressed by both the non-Korean AND Korean parties. Please take these with a grain of salt) :

1. TVXQ will leave the SM label and continue their promotions under a different or possibly independent label.

2. TVXQ will break up and SM will lose lots of money, possibly leading to a shutdown of the company.

Response to speculations:

1. At the current moment, this is the most popular outcome that most people agree upon. They believe that TVXQ will win this lawsuit, leave SM and start an independent label or sign with another big label such as JYP or YG. In my opinion, this is highly unlikely. The lawsuit has nothing to do with terminating TVXQ's contract with SM. Along with that, SM has a lot of influence over MBC, KBS, and SBS and can easily prevent TVXQ from performing on any of their music shows and cause many hardships for TVXQ. This is what happened with Shinhwa. On the other hand, TVXQ is arguably THE hottest band in K-pop and promotions aren't necessarily needed in order to sell albums.

2. This is, in my opinion, highly unlikely unless SM plays a part in breaking them up. There is no proof that any of the members have any beef with one another. This is just an outcome that anti-fans have come up with to dishearten others. But please remember, the possibility is not ruled out and everything is up in the air until official statements from both parties are released.

Hopefully this article cleared up any and all confusions regarding this developing story. Please remember that anything not listed as a fact is based on rumors alone and that they may turn out to be true or may turn out to be completely false. Stay tuned to allkpop and we'll keep you up do date with the situation as more details leak out." -
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32 / F
Posted 8/1/09 , edited 8/2/09
The last time I was on here I tried to tell some of you ignorant bastards SM was probably robbing them blind......and I was right.

Whoever wrote that allkpop article sounds like a fangirl in denial. Their lawyer just gave a phone interview earlier today is said IT NOT JUST ABOUT THEIR COSMETIC COMPANY, IT IS ABOUT THEIR CONTRACT. sm is trying to make this look like the boys aren't fed up with their contract and save face from having another group sue them.
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23 / F / in super junior's...
Posted 8/3/09 , edited 8/3/09
they r nt breaking up ...
they jus wan to express their feeling ....
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F / someplace boring.
Posted 8/3/09 , edited 8/3/09
read this:
Idol group Dong Bang Shin Ki’s members Micky YooChun, Hero JaeJoong and Xiah JunSu finally revealed their stand about their problems with SM Entertainment.

Their representative revealed through news media on 3rd August, “The 5 years period after they debuted, the 3 of them felt that their minds and their bodies are tired having to follow the tight schedule that the company put up unilaterally.”

They continued, “Kim JunSu, Kim JaeJoong and Park YooChun have been following SM’s instruments from beginning of 2004 till now, going back and forth promoting in Korea, Japan, China etc, and in a year except for 1 week they get only 3-4 hours of sleep a day to do our schedule.”

Also, “In the process the health of the 3 members are very much deteriorated, they are also suffering from mental fatigue, and as time went SM continue to established on their own decision for Dong Bang Shin Ki to advance into other countries. In the end the 3 members felt that as compared to be fulfilling their dreams to be singers, they are used more as a tool by the compared to earn profits, and they wish to use each of the members to also go into other entertainers’ activities.”

The 3 members’ representative also added, “It is a 13 years contract but in reality it is a lifetime contract. With the exclusive rights clause in the contract, the 13 years also include the time the members are serving their military service, hence it will go for more than 15 years. And now it has not even been near to 10 years since the group’s debut, hence it seems like the contract will last until the members’ retirement from the entertainment zone. The penalty for retracting the exclusive right clause is 3 times the investment cost and 2 times the lost in earnings. They also asked about the penalty of cancelling the whole contract but it will involve several hundred billions KRW of penalty, hence in reality there is no way out but to be tied down to SM because of the contract.”

Also, “The members did not receive the right treatment even from SM. Without getting any contract fees, the initial contract was that if their album sells more than 500K copies, each member will get about 10 million KRW during the next album release. If they sell less than 500K copies of album, they will get nothing.”

The 3 members had went down to Seoul Central District Court to file for a retractile of their exclusive belonging rights with SM Entertainment on 31st July, causing an outrage of speculations about the group’s disbanding and also problems between the members and SM.

Translations of the official press release. My translations was a summary, here’s the actual press release statements

1. 5 years after their debut, the three members are physically and emotionally fatigued from the company’s one-sided orders.
-Kim Junsu, Kim Jaejoong, and Park Yoochun debuted as DBSK members in 2004. Since then, they have followed SM’s orders to go from Korea, Japan, to China. With the exception of 1 week for year, they were only able to get 3-4 hours of sleep and had to go through schedules. During this period, the health of the three members deteriorated and they were mentally fatigued. However, SM pushed DBSK into foreign markets which resulted in excess performance plans. In result, the three members felt that they would not be able to achieve their dreams in SM and would be just tools for the company’s profit. They wished to participate in entertainment activities according to their individual visions.

2.In reality, 13 years of contract meant a contract for life.
-According to the contract, the period of the contract was 13 years, but when including military service, would exceed over 15 years. This meant that there was still 10 years to go with the current contract and in reality, meant until retirement. In the instance that the contract would be breached, the penalty would be to pay 3 times the total investment, 2 times the lost earnings. Even in the case that the contract is canceled when agreed by both parties, the members were required to pay penalty. Therefore, due to the millions of wons required by the contract upon cancellation, contract cancellation was realistically impossible and the members had no choice but to remain in SM

3. The members did not receive adequate treatment from SM for their efforts.
-Despite all this, during the duration of their contract, they did not receive adequate treatment from SM. They did not receive any earnest money from the contract, and according to the initial contract for album profit allotment clause, only when an album sold 500,000 copies, could they get $10,000 per member for the next album, and when albums sold less than 500,000 copies, the members could not receive any earnings. This clause was revised in 2009, February 6th, but even after the revision, earnings that each member would receive for the album sales were 0.4%-1% depending on the album sales.

4. The members requested for corrections to the unreasonable contract, but SM did not listen to the member’s opinions.
-In this situation, the three members pointed out the unreasonable parts in the contract and asked multiple times to be freed from the contract’s boundary and work according to their visions but in response to the current situation, SM discussed issues dealing with their investments in the makeup company, not responding to the true nature of the problem. Despite all this, the three members wanted to find a way to deal with the situation and requested for a conference where both parties could find a solution but SM did not respond. During this process, by the attitudes shown by SM, the three members realized that there was no point in hoping for a settlement and resorted to the court of justice to execute a solution for the problems.

5. The investment in makeup company does not have any relation to entertainment activities and does not have any relation to the applied provisional disposition. The nature of this incident is the contract.
-SM stated that the disposition was submitted due to the investment but the members’ investments in the makeup company do not have anything to do with the provisional disposition. The makeup company SM discussed planned to export to China, and the three members invested as stockholders, having no relation with their entertainment activities. Just by common sense, it does not make sense that the members would give up all their efforts and results as DBSK in order to invest $100,000 to the company. The core of the problems presented by the members is contract injustice, and SM’s attempts to blur the true problems by bring up the investments must stop now.

6. The members do not want DBSK to break up and just hope to free themselves from contract restraints.
-May fans are worried that the disposition would result in DBSK’s break up. However, this disposition was not intended for DBSK to end. Right now, due to differences in how the members wish to overcome problems, only 3 members have participated in the lawsuit. However, there is no problems within the members and they all have the same wishes to keep their promises with their fans to always remain as one. After this incident, if contract injustice is corrected and the members are given conditions to freely perform their music, they feel that everyone can be one and can stand in front of fans as one.

7. We will take this as an opportunity to mature.
-The members realize how much DBSK fans must be surprised and be disappointed about this incident and are distressed and sorry. If the fans could think of this as a jump to bigger dreams and continue to cheer, the members promise to respond to the fans as better musicians.

Source; translation by j.adore @ soompi

ccredit: sookyeong.
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F / someplace boring.
Posted 8/3/09 , edited 8/3/09
BTW sm stock are falling BIIIG TIME
no joke .
they sure have alot of influence.
Posted 8/3/09 , edited 8/3/09
OMG i cant imagine
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28 / F / Living in the US...
Posted 8/3/09 , edited 8/4/09
nope. they're not. i'm not in denial. i just know it.
they have too much fans and from the money
they get back from the lawsuit, they will definitely
make it out there on their own without SME.
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Posted 8/3/09 , edited 8/4/09
Ehh whatever. ^^
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26 / F / Greatest Place on...
Posted 8/3/09 , edited 8/4/09
I doudt their breakin up.
So many fans n sucess to pass up.
But I would sue SME too b/c 3~4 hours sleep, 100 of concerts n practices a year
I would want more money n breaks
SME is a ass
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25 / F
Posted 8/6/09 , edited 8/6/09
oh no......i'm really hoping they're not breaking up....
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24 / F
Posted 11/27/09 , edited 11/28/09
but shinhwa didnt split up they went to nother entertainment company , and if the three members leave SM Entertainment that doesnt mean they are going to break up , just like shinhwa , i mean the group belong to good entertainment but the members left the company (excpet for hye sung) to make their own commpany or join another company .
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21 / F / on Earth
Posted 11/27/09 , edited 11/28/09
DBSK wont break up!!
they will always be together
even untill they get married.....

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35 / F / UAE
Posted 11/28/09 , edited 11/28/09
SM Ent deserve much more seriously.. i mean who would make a contract for 13 yrs? This is absolutely redicilous and inhuman... is it some sort of prison or what? i dont want them to stay with this agency anymore, they should be like Shinhwa and move to new agency.. Lee Suman does not deserve boys like them after he minipulated their signatures and made stupide contracts!!!!
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