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[News] November 2009
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Posted 11/3/09
[NEWS] CEO of SME calls the legal actions a “fraud”



The SM Entertainment held a press conference today and told their side of the story regarding their legal dispute with three members of TVXQ/DBSK. In addition to a statement by Yunho and Changmin, the two members who did not take legal actions against SME, and statements by their fathers, SME's own representatives spoke up as well; Mr. Kim Young Min, the CEO of the company, stated the following:


Back when we first advanced to Japanese market with S.E.S., major entertainment companies in Japan normally asked for contracts in length from 5 to 7 years. As long as the entertainer stayed with the company for the stated amount of time, the company would not cease investment into the entertainer. When we first planned for BoA to work in Japan, we set the length of the contract at 10 years to allow for long-term investment and a partnership with a major Japanese entertainment company. This resulted in SME working with AVEX, the largest entertainment company in Japan. BoA's great success in Japan was a product of such planning.

When we first planned for DBSK, we wanted to make them the number one artist in Asia. Five members and their parents shared such vision and agreed to add 3 years to initial 10 year contract. The members and their parents agreed to the contract because they found the vision as the number one artist in Asia, constant support from SM, plans to go abroad and continuous investment into the group very appealing. Everyone thoroughly reviewed the contract and agreed to all clauses. To keep the promise of advancement into Japan, SME invested over $4 mil into DBSK despite poor financial condition that the company was in. After 5 years in Japan, we can finally say that we are successful. It is unfair to focus merely on the number 13 without any background knowledge of how the contract was made and the goals and visions shared between SME and DBSK.


Kim Young Min then revealed some startling events that had occurred earlier this year.


On January 6, 2009, the three members told SM that they were going to China for a vacation; but in fact, they attended a meeting with the beauty product company's Chinese subsidiary to talk about investment into the company. We only realized of the deal after photos of them promoting the company surfaced online. We then learned that the three members are board members of the Chinese subsidiary and that they even carry business cards of the company with their name and position engraved.

The three members demanded an increase in their share in profit and we accepted their demands. In April, we had a dinner party after our concert in China. The three members told members of other groups about how much they trusted in SM. Shortly after in May, a Japanese fan asked AVEX's customer service department regarding an event by the beauty product company which claimed that the winner would have dinner with DBSK. SME feared that losses resulting from matters related to the beauty product business would be impossible to recover from. We wanted to review the members' contracts with the beauty product company to protect the members from potential dangers but they refused to share the contract with SME and did not take any actions to relieve SME from our concerns regarding their investment into that company. In June, a major beauty product company contacted us and said that they wanted to use DBSK in their commercials but the three members refused due to their own interest in beauty product business. Shortly after they took legal actions against SME.

The truth face of their action is a fraud. A fraud which fooled the entire nation with words such as "human rights" and "slavery".

Regarding the recent court ruling; three members are now free to pursue personal projects, however all DBSK-related work must be done through SME. Yunho and Changmin intend to promote DBSK in Korea next spring, and we feel that it should be planned at least six months in advance. SME asks the three members to respond to this by November 12th.


Credit: [email protected]
Sources: newsen.com (1/2)
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Posted 11/3/09
[NEWS] 091102 SM is Sure of Overruling Court Decision on TVXQ

Talent powerhouse SM Entertainment has vowed to fight back and win against a court ruling last week which granted three members of boy band TVXQ partial victory in their request to nullify their exclusive contract with the agency.

In late July, TVXQ members Hero Jaejoong, Micky Yoochun and Xiah Junsu had applied for provisional disposition of their 13-year contract with SM to which a court ruled that the agency will not interfere in their individual activities.

"The recent decision has not taken the essential reasons and fundamental of the issue in to consideration," SM started by saying in a press release on Monday. "We are sure that the court's decision will change once we provide enough evidence which are looked into under the proper legal proceedings."

SM also declared that they will ask the three for compensation amounting to over a total 2.5 million dollars for the losses and damage incurred upon the group and the agency with the ongoing legal action, should the court rule in favor of SM in its final verdict.

They went on to explain that the terms of the contracts had been adjusted every year in favor of the members and are now asking to be freed from them since they are starting to see success.

"This ruling will cause confusion in the entire entertainment industry and make it impossible to create a system where (agencies) will be able to upbring their stars with long-term prospects," SM added.

The statement came just hours before a news conference set for later in the day where they plan to talk about their position in more detail.

TVXQ, who debuted in 2004 with album "Hug", is one of Korea's most successful K-pop groups. They are stars throughout Asia, reportedly having the largest fanbase in the world, and have enjoyed great success in the Japanese music industry in particular.

Source: asiae.co.kr
Shared by: [email protected]
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[TRANS] Yunho & Changmin’s fathers strong disapproval of other members

The fathers of Yunho and Changmin, the two TVXQ members who were not involved with the controversial lawsuit earlier this year, spoke up in support of their sons and SME while condemning other three members and their parents. They claimed that the dispute has more to do with the trouble that have arisen from the beauty product business rather than contractual matters.

Mr. Chung, the father of Yunho, stated:


The two members who did not involve themselves in this legal dispute are the real victims here. They suffered from financial loss, psychological suffering and most importantly they lost their reputation. Who is to compensate them for their losses? I intend to ask the three members this: Whatever the reason, why do you intend to cause such great controversy and drive DBSK, an international brand name, into a break-up? Do you care at all about the other two members and their suffering?

The beauty product business wasn't something that was supervised by SME. On top of that, the beauty product company itself wasn't very trustworthy. When it was started, I felt that DBSK's reputation could potentially suffer from involvement with that company and advised my son of the issue. He shared my concerns as well, and that is why he did not involve himself in the business. SME later asked the three members to withdraw from the business but their parents resisted unreasonably. Mr. Shim (Changmin's father) and I tried to convince them as well but they simply refused to change their minds. I later learned that the three members took up legal actions against SME without consulting me nor Mr. Shim. DBSK is not owned by those three members only. They ignored not only the controversy that would rise but also the rights of other two members.


Mr. Shim, father of Changmin, stated:


Simply put, the other three members took legal actions against SM because of the beauty product business matter and other reasons which involve their financial gains. What they claim as their reasons, reasons such as unfair contract and unclear profit division are merely excuses to hide the true reason behind their actions. After the three members started the beauty product business, one of the parents called me and told me shenanigans like "This business can be worth millions or even billions in the future. When we tell the media that DBSK has started a business, share price of our company will hit the roof - we will tell you in advance so you can profit from the information."

Three members claim that the contract is unfair and calculations are unclear, but my son and I have read over the contract with SM clearly and agreed to all clauses, from the very first contract through all five revisions that have been made. For every income my son has received I reviewed all of the the numbers. I feel sorry for the three members and their parents as they must know of the truth but they continue to make false claims."


Credit: [email protected]
Source: MK
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Posted 11/3/09
[NEWS] Changmin and Yunho support SM Entertainment



Yunho and Changmin of DBSK/TVXQ have stated that they are on SM Entertainment's side on the legal dispute between the company and other three members. They said that they trust SME and will be with them in the future. The two also gave a deadline to other members, saying that DBSK will come back to promote in Korea next spring, so the other three members must make a decision before the 12th of this month.

The two members' thoughts were delivered through a compiled document, which stated:


We five members of DBSK signed the same contract with the same clauses and for the past five years, and have worked together under same conditions with utmost trust in the company, each other and our dreams. We intend to share our dream and future with the company and keep the promises we made in the contract. DBSK was made by SM and we intend to work as DBSK with SM.

No other company can create DBSK, as only SM can provide the best production and management team available. The three members must know better than anyone else that SM is the one who knows DBSK the best and made DBSK the best. We intend to keep trust and promise and thus intend on staying with SME. DBSK's grand future will be with SME. We believe that our Korean promotion, planned for next spring, should be prepared at least six months in advance before our future as one DBSK becomes unclear. If the other three members truly want to stay as one DBSK, they must make a decision before it is too late.


They also commented on the beauty product controversy which sparked this legal dispute:


The beauty product business changed everything," they stated, "We are not familiar with the matters but we believe that a legitimate company that seeks to do business with DBSK must consult with SM first. It is common sense. We did not get involved as getting involved with a company that sought to do business without SM would have meant that trouble was ahead.

We did not want the reputation and pride of DBSK, earned by our hard work, to get ruined by a beauty product company that did not work in a legally respectable manner. We are not aware of the contract between that company and the three members, nor do we know what those members were told or how much they have earned through their deal. What we do know is that the fact that DBSK, forged together for 5 years by all of our dreams, have fallen into the current state because of an unethical company is simply unacceptable.

DBSK crumbling away like this, this is all so unbelievable. It is sad to see that this was all caused by some beauty product company, and we hope that the three members would come back to the days when we were all working hard for our dreams.


Credit: [email protected]
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Posted 11/3/09
[NEWS] TVXQ not allowed to continue group activities?!

SM Entertainment will hold a press conference today regarding the conflict with TVXQ/DBSK/Tohoshinki.

Lawyers of SM Entertainment said:

"The court's ruling for TVXQ is not fair. They didn't consider the main reasons of the case. Their long contract is so that we can let them grow and have a long term deal with them. We want to look at their career in the long run and the court's decision is not letting us do that. This is going to affect TVXQ's international promotions. It'll also create confusion for stars that want to have long term contracts and move on to bigger things later in their careers and for the companies that want to nurture talented people for a longer time. Not only that, it'll have some unwanted consequences on exports of Korean music as well as other issues."

They continued to say:

"Each year, we adjusted the contracts in favor of the members. Before this problem, the three members never complained about anything. Now that they have succeeded this much, they are complaining. They have just started to reach the top and now want to separate. Before a final decision is made, the three can do their personal and individual work. However, we did not acknowledge the right for the three to work as TVXQ."

Because of all this, TVXQ has not been able to work and SM Entertainment will seek to receive compensation for damages during the time that TVXQ has been inactive.

Source: The Star Chosun
credits: allkpop
shared by: dbsknights + DBSKcafe
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[TRANS] 091102 TVXQ’s Participation in the Concert at Shenzhen, Last Stop for the Tour

Confirmed: TVXQ will participate in the concert at Shenzhen
Before the ruling, all TVXQ members had signed as a confirmation that they will be participating in the Shenzhen Concert. This event will definitely not be affected by the conclusion of the lawsuit. Kim Jaejoong, Jung Yunho, Park Yoochun, Kim Junsu and Shim Changmin had all participated.

Regarding Kim Jaejoong’s, Park Yoochun’s, and Kim Junsu’s ability to choose their own activities, we have contacted the relevant person in-charge in SM Entertainment; the responsible person said that all five members of TVXQ have deep feelings towards Chinese Cassiopeia. The five of them could not bear to hurt their fans’ feelings. “Last 2nd of October, at the Shanghai Concert encore stage, the whole audience (Cassiopeia) was holding “Miduhyo” cloths to express their support, and this scene had touched everyone; TVXQ is not an exception. All five members will participate in the Shenzhen Encore Concert.”

Confirmed: Shenzhen Concert, last stop for the tour
Since the Shenzhen stop was decided by both sides before the verdict had been signed, the performance will not be affected, regardless of the outcome of the court’s decision. TVXQ will bring a full line-up scheduled appearance in Shenzhen to the Chinese fans, bringing the most exciting concert encore.

Regarding the rumours indicating that there would still be Chengdu, Guangzhou and Nanjing stops after Shenzhen, the company stated that “TVXQ’s concert in Shenzhen to be held on the 21st is definitely the 3rd Asia Tour final station. They will perform a complete line-up, and paint a successful closing for the 3rd Asia Tour.”



Source: baidutvxq
Translation: honeyiceblend/nings @ OneTVXQ.com
Credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }
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Posted 11/3/09
[NEWS] 091102 TVXQ 3 Members “We’ve Already Pulled Out Of The Cosmetic Company”



Source: [sportsseoul+DNBN]
Translation credits: [email protected]
Shared by: tohosomnia.net
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[NEWS] Jaejoong, Junsu, and Yoochun react to SM Press Conference

TVXQ / DBSK / Tohoshinki Members Hero Jaejoong, Xiah Junsu, and Micky Yoochun recently held a phone interview with Sports Seoul and shared their feelings about the press conference held by SM Entertainment.

In the press conference, SM Entertainment said that the root cause of all this trouble was the investment into the Chinese cosmetic company. During the phone interview with Sports Seoul, the trio of Jaejoong, Junsu, and Yoochun stated that they watched the press conference together. They had issues that SM Entertainment stated the root cause was with the investment into the cosmetic company. They state that this cosmetic issue has nothing to do with the suspension of exclusive contract as their activities as TVXQ are more important than a cosmetic company. They also stated that they pulled out of the cosmetic company to avoid controversy. They did admit that the cosmetic company controversy played some part into their decision for the suspension of the exclusive contract but emphasized once again that they pulled out of the company.

The trio also stated that having TVXQ continue together is the most important goal but SM Entertainment abused their position in authority and have cheated them out of billions of won (millions of dollars). They stated that they're worried about their fans and that the fans will be the ones suffering the most through this trial. They closed their conversation by stating they will discuss the next steps with their lawyers and proceed from there.

source: Sports Seoul
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[VIDEOS] SME Press Conference

http://www.youtube.com/watch?v=carq6-RAsQI

http://www.youtube.com/watch?v=7pjrX8ga_gg

Credits: personanongratatvxq
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[NEWS] TVXQ JJ, JS & YC’s Full Statements

We previously reported about Jaejoong, Junsu and Yoochun's reaction to SM Entertainment's press conference. The full interview and statements from the 3 TVXQ members have now been revealed. Both parties are now in a full on battle and have added yet another layer of complexity to this already complicated story.

Q: Yunho and Changmin are still with SME.
"That is very unfortunate. SME offers unacceptable conditions to their artists. It breaks our hearts to know that Yunho and Changmin are still there."

Q: You have partially won the trial. How do you feel about your victory?"
"We're more worried about how Yunho and Changmin would feel confused about the ruling. They must have thought that SME, a major entertainment company, would win."

Q: Yesterday, Yunho and Changmin showed their support for SME.
"They can't help but do such thing. They have to do something like that because they're with SME. We've done a lot of things we didn't want to do as well, because we were forced."

Q: How are you finding their decision?
"It'd be a lie if we didn't find it somewhat bitter. But we know that they have their own story, so we understand them."

Q: What do you plan on earning through this lawsuit?"
"All we want is to part from SME. The contracts were unfair, especially the length of 13 years. Division of profit was problematic as well. The three of us have yet to receive our share of income amounting up to couple hundred thousand dollars each."

Q: Some view the lawsuit as the end of DBSK?
"We do not want to cease working as or break apart from DBSK. We just want to end our relationship with SME."

Q: Are you in contact with Yunho or Changmin?
"We lost contact with them after we took legal actions. But we can assume why that would have happened."

Q: How do you plan on maintaining your relationship with those two members?
"If they have something that is holding them back from talking to us, then we will fight to change that. They will speak up when the time comes."

Q: So you are willing to stay together with two other members?
"When this whole thing is over, we will resolve our misunderstandings with the two. We will wait for that day."

Q: Any plans on working as three?
"We will not release an album or perform on stage until Yunho and Changmin comes back to us."

Q: Are you going to stay together until the end with the other members?
"We want to keep DBSK. The stage means something only when all five of us are on it. We are one. We will walk in the name of DBSK until the end."

Stay tuned to allkpop for more developments.

Source: nate
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[NEWS] CreaBeau speaks out on TVXQ 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.

Kang said, “In May 2009, some SME representatives visited the original branch of CreBeau Cosmetics in China twice. They determined that the members were not going against contract terms in any way, and now SME is distorting the true reason behind the case and putting out ridiculous claims... SME said that the whole lawsuit was due to the members’ wanting to continue a business that went against contract terms. This has no credibility in that SME has already approved of the investments previously. The members wouldn’t risk all the things that they gained as TVXQ by creating a conflict with their company over insignificant investments. It was a private investment, and the three have no ownership over the business in any way. They’re merely investors, nothing less, nothing more. What does this have to do with the lawsuit, and why is SME attempting to connect the two together?”

Kang went on to say that SME’s actions have brought about significant harm to the business not only in Korea, but all over Asia, including China, Japan, Hong Kong, Taiwan, Vietnam, and even the United States. For the employees and CEOs all over the world, CreBeau is their sole income. SME should have considered the impact its blames would bring to the business and the people involved in it.

“If SME’s company and its profits are so important that they are willing to harm others for it, then SME should recognize that it is the same for others.” Kang went on to say that “If SME does not stop distorting the truth and doesn’t apologize for the harms it brought upon CreBeau, I will not hesitate to reveal the details of SME’s absurd act to the public and to the court.”

Source: Daum Media
Credit: Allkpop
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[NEWS] Cassiopeia releases statement about SME’s allegations

Members of the Korean Cassiopeia, TVXQ/DBSK's official fanclub, have released their official statement regarding SM Entertainment's press conference regarding legal dispute involving DBSK which took place yesterday. Here is the translated version of their statement:


We 800,000 Cassiopeians would like to announce our official view in this statement. With accusations and allegations flying everywhere, we announce this in order to show the fanclub's official standing on this matter. This statement is made by union of numerous DBSK fan cafes and we present this in the name of Cassiopeia.

First of all, we would like to say that, as fans of DBSK, we support DBSK and will not do anything to betray their trust in us. We will not trust anything besides words that come out of the DBSK members' mouths, and we ask SME to stop actions that are intended to confuse and divide the fans.

We Cassiopeians are very disappointed in SME for holding press conference and releasing signed documents in the name of Yunho and Changmin. As the management company of DBSK, SME must not forget their job and must stop their actions intended to defame the members of DBSK and break the group apart. Also, according the the court ruling made on the 27th, SME must not make deals with third parties in the name of the three members and cannot interfere with individual works or those members. Please keep the court's order.

To everyone who is reading this statement, please remember: the members did not take legal actions because of the issues regarding the cosmetics business. They started this lawsuit because of illegal contract length of 13 years. We fans do not understand why SME is silent about the issue of the contract length and is trying to focus everyone's attention on the cosmetics fiasco. The goal of this lawsuit was to nullify or edit contract between SME and the three members, and we believe that they did not intend to end DBSK or move onto another management company. Also, we would like to address to reporters who sensationalize and create rumours related to this press conference. Please be careful with your sources.

We would like to ask SME one more time to not make the three members' reputation and rights suffer with claims that have never been proven, and we would like to ask the citizens of Korea to stop creating rumours and defame DBSK. We would like to show our condolences toward this controversy.

As Cassiopeians, the fans of DBSK, we will keep our attention focused to the future actions of DBSK and SME. We will continue to side with DBSK. DBSK and fans never doubt.

-- November 2nd, 2009, Cassiopeia, the fanclub of DBSK


Source: AllKpop
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[TRANS] 091103 Lawyer Park Chan Jong 'SM Must Stop Their Devious Actions'



Source: [breaknews+DNBN]
Translation credits: [email protected]
Shared by: tohosomnia.net
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[VIDEO + TRANS] 091101 JaeChun Hello Kitty Message

http://www.youtube.com/watch?v=5CcbRQ31tn4

Source : MurasakiHashidoi218

Translation:

JJ: Hi everyone who is watching Kids station!
JJ: We are from TVXQ Jeajoong
YC: And Yuchun !

YC: Congratulations for Hello Kitty’s 35th Birthday Anniversary!
JJ: Congratulations!!
Both: Clap hands.

JJ: We released, the song “Colors Melody and Harmony” which is the image song
of Hello Kitty 35th…
YC: 35th!
JJ: ….Birthday Anniversary on September 30th. It has been released!

Both: Clap hands.
YC: Oh~~~~

JJ: Well, we are very happy to be selected to be the image song of
Hello Kitty!

YC: Yes. Colors Melody and Harmony will give you an warm feeling,
and this is also a song that when you hear it once,
you will be able to sing it it right away.
(T/N: Really Yuchun?! lol)
YC: Please everyone, sing a lot and listen to it a lot.

JJ: Yes, then, it was JJ & YC from TVXQ!!

Source: lovelytvfxq
Translation: Junsulv @ OneTVXQ.com
Credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }
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Posted 11/6/09
[INFO] Summary of the Judgment of JaeChunSu's Petition for Preliminary Injunction to Void Exclusive Contract

Current stage of proceedings – Preliminary Stage, still needs to wait for actual trial

What was granted – temporary suspension of the exclusive contract + JaeChunSu can engage in independent activities + SM cannot compel JaeChunSu to participate in entertainment related activities (otherwise it has to pay $10,000,000 KRW per violation)

Why - “basic relationship of trust that is the foundation ...has already crumbled” (3B) and if the actual trial was prolonged, JaeChunSu would basically be receiving little or no income if they were not allowed to pursue independent activities

Why the rest of was not allowed – because possiblitiy that TVXQ may continue as a group + ratio of distribution of revenue are difficult to calculate (3C)

On the issue of 1,000,000,000 KRW – the reason why the Court needs JaeChunSu to pay a deposit (or a bond insurance) is because in the case where SM wins, the court has to ensure that they have enough money to compensate SM (it is a common practice to request the party with a weaker financial position to provide security)

VERY VERY Important points raised by the Court in its reasoning –

On negotiating powers when accepting the contract – ONE SIDED
o 2B1 – The Court rejected SM’s claim that JaeChunSu has equal or superior negotiating powers in accepting the contract.
o 2B5 – “an extremely one-sided contract”

On the 13 years contract period – EXCESSIVE
o 2B2 – the earliest date the contract ends is 13th January, 2017 excluding the conscription period. On the length of the contract, the court commented it is the longest amongst all provided examples (apart from Boa and Yoo Young Jin’s 15 years)

On the amount of damages JaeChunSu has to pay if they terminate the contract – SLAVE CONTRACT
o 2B3 – court hints that it is unfair as SM can terminate the contract without itself paying damages
o 2B4 – court concludes that the provisions on damages goes more than the original intention (of compensating the injured party i.e SM)
and instead “absolutely blocks the Petitioners [Jaechunsu] from exiting the Contract for the sole purpose of maximizing the profits of the Respondent [SM].”
“ By doing so the provisions act as a device to enslave the Petitioners to the Respondent for the abovementioned contractual period of 13 or more years and the court finds it difficult to sanction such them as they are” [seems like the court cannot help but agrees with the lay term ‘slave contract]
o 2B5 – court believes that such contracts does nothing but to solidify the monopoly of large entertainment companies in Korea

Conclusion –
o The contract is “contrary to the public morals and social policy, or otherwise void because it exceeds what is rational for the length of a contractual term
o Unless SM modifies almost all of the important parts of the contract, including the contractual period and clause on damages in case of termination, this contract is likely to be void because it imposes on JaeChunsu an “unjust burden”

Afternote –
o After the entering of the original contract (you can find the dates under 1C as listed in the table), there were 5 subsequent supplementary agreements. The last agreement is dated 6th February, 2009. [note from writer – this is the point of time where JaeChunSu claims they have not been receiving income therafter. It is unknown what amendment have been made which brought forward such claim]

Credits: pinkwings @ OneTVXQ.com
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