[Trans] Three Questions Regarding SM’s Position

Spanish translation for this article is available HERE (traducción en español aquí), courtesy of our reader Bea.

Three Questions Regarding SM’s Position

By #Xiah_[Piffania]

Translation by: Jimmie of TheJYJFiles

[The Dong Bang Shin Ki Special, 2nd post: This is the post compiled after the first hearing on the injunction on August 25, 2009. What the three members of Dong Bang Shin Ki bring up is ‘a problem with the system’. But is that being properly addressed? Although my work may be insufficient, I would like to add it to the ongoing debate.]

Last year, on August 21, the first hearing on the suspension of the Dong Bang Shin Ki members’ exclusive contract was held. Although the hearing was held in private in a closed session several details were leaked to the press. I expected to hear that both sides displayed steel-like resolve in their positions or maybe that they were starting to find grounds for compromise, but, instead, what was reported of the hearing left my heart cold. It’s because of several allegations made by SM. These are the questions brought about by these allegations.

Why was Dong Bang Shin Ki required on Japanese national television and the DVD with the same broadcast to advertise SM’s restaurant?

On that day [of the first hearing] SM’s lawyer made the allegation, “SM requested the three members to pull out of investing in the cosmetics business because it would bring irreversible harm to Dong Bang Shin Ki’s image.”

I’m not going to bother with whether it was right or wrong for the members, or the members’ parents, to invest in the cosmetics business. Is it even necessary? This issue falls in the territory of the Dong Bang Shin Ki members’ personal investment activities. Unless they mention it in their albums or DVD, it’s none of my business. After all, never once did they use their activities as singers to promote their private investments. But there is one thing I know…

In March of last year, Dong Bang Shin Ki made an appearance on famous Japanese talk show, ‘Shabekuri 007.’ They were given exposure on national Japanese television in the same show as Japan’s best and most popular comedians for about an hour. Here, Dong Bang Shin Ki introduced and promoted their restaurant ‘Grape Tree’. However, it turns out this restaurant is owned by SM’s own catering chain SM F&B Development and was created by them. This shook the confidence of Korean and Japanese fans who only found this out after the fact. Isn’t this damaging to the image of Asia’s best group?

Not long ago, Dong Bang Shin Ki’s DVD, ‘All About Dong Bang Shin Ki 3’ was released for sale. It was a full-length DVD sold at the price of 48,000 won (roughly $46). It’s a DVD that contains [Dong Bang Shin Ki’s] vacation trip, showcase, interview, music video and related clips. And yet, in several clips of about 30-40 minutes in length, Dong Bang Shin Ki’s members are promoting and introducing SM’s restaurant businesses in Korea, such as e-table as well as the Japanese restaurant Grape Tree. And the method of introduction was quite a sight [sarcasm].

The introduction they do is not on the level of merely having the restaurant in the background. It’s not even on the level of mentioning it in passing. From a previously scripted ‘Marketing of the Restaurant’, the Dong Bang Shin Ki members are made to read intently. They play a quiz that requires them to read the items on the menu one by one and match the associated descriptions. The waiter appears, the members cut short their comments and, covering the members’ figures, the waiter explains each item on the menu in more detail. Later, he even says the prices of the set menus. Is this kind of content fitting to the image of Asia’s best vocal group? Is such [shameless promoting] suitable for this group’s full-length DVD?

For an hour and ten minutes, Dong Bang Shin Ki—the singers with the highest market value in all of Asia, singers whose appearance at a single event brings in several 10 millions USD in guarantee—were used despite ‘the irreversible harm to their pride as singers’ to promote the launching of a restaurant owned by SM’s board of directors, which reduced them to the level of salesmen. Then, SM wraps this content in a DVD to sell to Dong Bang Shin Ki’s Korean and Japanese fans as well as to fans in the greater Asia region.

In such situations, is SM actually managing Dong Bang Shin Ki? Or is it using Dong Bang Shin Ki as SM’s salesmen?  And yet it dares to speak of ‘fear of [Dong Bang Shin Ki’s] image led us to request [the three members] to refrain [from the cosmetics investment]’; can such words come out of its mouth?

Is it a lie that all scheduling ‘was reached through cooperation’?

At the hearing that day SM’s lawyer claimed, “The three members were never forced to participate in advertisement or shows or other appearances that they didn’t want to do, so I don’t think they have grounds to be dissatisfied in this regards.”

In truth, it is this claim here that turned my heart cold. ‘No reason now’ did you say? No reason now, in bringing up this lawsuit, because Dong Bang Shin Ki weren’t forced to participate in advertisements or shows and appearances that they didn’t desire to do? Didn’t SM itself say, “In the area of health and scheduling there was sufficient cooperation/negotiation”? So then why at this point do they even have to point out that they found a solution to Dong Bang Shin Ki’s “dissatisfaction” with regards to “appearances that they didn’t want to do”? Does this mean that there were in fact ‘causes for dissatisfaction’ until now?

Upon hearing this claim, I suddenly recalled the time last February when they appeared on ‘Line Up’, a Korean variety programme. The reason why this broadcast remains in my memory is because I felt very uncomfortable whilst watching the broadcast. The producers coordinate with the managers to record a hidden camera scenario in Dong Bang Shin Ki’s waiting room. The scenario is the following: creating a situation where one of the members had to make a ‘Line Up regular/fixed appearance.’

Line Up is a game programme with an ambiguous design in a short-lived format and poor viewer ratings. Dong Bang Shin Ki’s appearance on this show in the midst of an excessively tiring schedule for their Japanese activities was most likely the decision of their management company as a ‘courtesy appearance.’ So, Dong Bang Shin Ki not only helps as [SM’s] salesmen but also helps SM’s managers maintain good relations with broadcasting stations by running odd-end errands like this.

Therefore, a fixed appearance on this programme, in the end, is not a good thing. But this hidden camera scenario starts with the premise, ‘ this programme is not a popular programme, and no one is expected to receive gladly an appearance here,’ and knowing full well that ‘no one eats pastry that he hates’ they presented this concept to the members, telling them ‘to pick a member who will do the fixed appearance.’ However, that process goes like this. The managers notify the members, and although their faces aren’t enthusiastic no one complains or turns it down. Among the struck-dumb members, Xiah Junsu catches the eyes [of the managers], and he asks, “You don’t want to, Junsu?” Junsu replies, “Of course I want to!” with a straight face.

I’m not trying to harp on the manager’s or the broadcast’s personal position. The problem is the practice/custom revealed by this scene. None of the members, in spite of their erratic schedules, can say with ease “No, I’d rather not” in such situations. I am extremely wary of and question the mind/mentality of the management company that takes pride in such decision-making procedures.

Even in 2008 Dong Bang Shin Ki was Asia’s best group. Even in the spring of 2008, these men had completed 17 sold-out tours in Japan’s Arena (10-20,000 capacity space) worthy of top-quality teams. Singing Love in the Ice, they moved the audience and received recognition as a team of musicians and as the representative group feeding their management and ensuring its survival. And yet, employees of broadcasting stations and the management company would have fun on certain ‘pilot programme’ appearances showing who truly held ‘decision power’. ‘In truth, these kids do whatever we tell them to do, whatever that might be,’ they would say.

And now [SM] are saying that ‘we’ve always cooperated [with DBSK members] on deciding the schedule.’ This is something coming out of the mouth of a company that has taken a leaf out of military training manuals in the manner they have pushed a young team that can’t say ‘no’ through 45 album releases, 103 concerts, heaps of broadcasts, heaps of promotions, heaps of events for the past 6 years without conceding them a single ‘rest period’, ‘re-energising period’ or ‘preparation period.’

The members would say, smiling, that they dreamed of ‘a month-long vacation’ or of ‘going on vacation just once,’ but each time their wishes were shot down. Even if their voices suffered, or they broke a leg, or had severe stomach irritations to the point of needing gastric pumping they still stood on stage and had to sing. Nonetheless, because this is a team with exceptional vocal abilities and ensemble qualities, I attended the shows and watched, but as time passed, witnessing this team became more and more like watching a ‘horror movie’ (I will elaborate on this idea in more detail in my follow-up piece, ‘Dong Bang Shin Ki’s 6-year life—an episode out of a cruel and twisted horror series’, which I will post up for your lecture).

In all honesty, I don’t think these people (DBSK) have yet recovered from the psychological scars brought on them. All of them would have experienced mental trauma at some level. Even after becoming the victim of an attack that made it necessary for him to have his stomach pumped, U-know Yunho was not given a holiday. Xiah Junsu, who almost wasn’t allowed to debut due to a 3-year long voice-change problem in puberty, who almost lost his voice completely again due to exhaustion and stress, would undoubtedly have been scarred by trauma. One time on a broadcast, Micky Yoochun confessed, ‘at times I just want to collapse.’ A video clip of Choikang Changmin stumbling/swaying is circulating online. After completing their tour, Youngwoong Jaejoong told the concert director in Japan, ‘having to sing like this will kill me.’ I believe these aren’t just casual remarks/expressions but in reality the truth. Because I saw that concert myself. I’ve seen them 8 times, and each time I felt at the same time overjoyed and disturbed. This is something I’ve been feeling for a long time.

And now, the company who was the one in control of all these situations is now coming forth to say ‘we never made Dong Bang Shin Ki undergo a schedule they didn’t want and so there are no grounds for dissatisfaction on their part.’ Not a single word of apology. Not a single indication of self-reflection.

They have never once communicated the position, ‘If by any chance we have conducted an excessive schedule, we think of this with remorse and apologise. Henceforth, we will monitor the hard work and strain of the members and improve in this area.’ This is the behaviour of the managers and board directors to whom for 6 years [the members] would refer to as ‘hyung’ or ‘father’ at every awards ceremony.

Is it normal behaviour to not fairly distribute the earnings from a singer’s album?

At the hearing that day SM’s lawyer said, “On July 15, Xiah Junsu took 45,000 USD from the company as advance payment only to sue the company that fed him a month later; an unacceptable/inappropriate act.”

On this matter, the three members’ lawyer responded through the press that Xiah Junsu never accepted advance payment; the amount referred to was tax returns that he picked up at the company. And even the court has accepted this fact and ordered that it not be brought up again. After that, SM has been unable to use that as a counterattack.

But what shocked me about this was something else. If Xiah Junsu had actually taken advance payment like that, can that really be considered unacceptable behaviour?

According to the Oricon website for album sales, Dong Bang Shin Ki sold in the past year 3.3 million USD worth of albums and DVDs. This places them in 8th place relative to all the singers active in the Jpop industry. That is an incredible and scary feat. Dong Bang Shin Ki’s popularity in Japan is indeed something to be feared. If one includes profits from concerts, the sum would easily surpass 7 million USD. Of course, what will be counted as net profit will be the amount that’s left over after taking out various fees and other profits shared out [among the management]. But the amount stands at 7 million USD. Do they think 7 million USD is the name of the boy next door?

On top of this, if we add the various small-stream revenues and profits, [DBSK] would have earned at least 10 million USD. To claim that a member of the team that earned this much for the company has no right to 40,000 USD in advance payment is ridiculous. It’s not like he stole the money; instead, he scribbled his signature on the log before receiving it. What’s the problem here? Under a 13-year contract and an arrangement that payment would be allotted every 6 months, is it such a horrible thought that one member asks for advance payment?

Right now there are a lot of questions concerning SM and Dong Bang Shin Ki’s income distribution. Aspects regarding investment fees and deficits and whatnot are indeed confusing and dizzying. However, the issue of income distribution between singers and the management company is actually not that difficult to understand.

It’s enough to follow the idea of ‘optimal percentage’ when it comes to payment. The sum amount of money is not important. But, obviously one must take into account the total sales as a standard when assigning payment. When using net proceeds as the standard, one must make it possible for the artist to know how much of it is from sales and how much was deducted in costs.

If the singer sold little, the singer receives little. If he sold a lot, he receives a lot. If he wrote some songs himself, the copyright rate goes to him. If he held a concert, a percentage of the concert proceeds goes to him. Of course, taking into account the fame and critical value of the singer, the terms of the contract adjusts itself with regards to the percentage allotted to the artist; this is the manner in which record labels and management agencies relate to the artist. Whether in Korea or out, it is like this. This is the way of ‘common sense.’

And so a company that itself doesn’t uphold the accepted practice and custom in its dealings with its singers has the nerve to criticize another for ‘inappropriate behaviour’?

Due to the particularities of their contract terms, [DBSK members] weren’t able to receive the royalties from the tens of thousands of albums they sold until early this year. For the various live and repackaged albums they released, the royalties practically don’t exist. The rights/copyright to all recordings are assigned to SM. Even the compositions created by the members themselves are automatically yielded to SM (I will go into depth about the content of the exclusive contract at another opportunity).

[DBSK] has rights to the net profits from online purchases and various side activities, but, in the case of the net profit from their Japanese activities, after Avex takes its share of the profits, the remaining sum is shared out between SM Japan and SM Korea. What is left after the deduction made by SM Korea is then shared out amongst the Dong Bang Shin Ki members.

Although what’s written in their contract guarantees them a fair share in the above areas, the reality is far from this ideal. When taking into consideration the interests of the artist, a reasonable percentage of the royalties and copyright, concert and event appearances should go to the artist. And then, the distribution of what remains amongst the relevant management branches should follow. This would make a well-viewed partnership. It represents sharing the fruits of success.

However, Dong Bang Shin Ki was unable to receive royalties, copyright, concert or appearance proceeds but received instead the bare minimum from the above arrangement. Dong Bang Shin Ki have the biggest role in the activities that bring in all the proceeds, but their pay-day/payment is prioritised only after those of the external staff and employees. In other words, they receive ‘the scraps.’ Naturally, there will be costs for management, external related employees, staff and maintenance taken out as ‘fees’. But what about the artistic labour of Asia’s best salesmen, Dong Bang Shin Ki…are there no ‘fees’ for that?

Let’s say all accumulated overhead expenses are taken out of Dong Bang Shin Ki’s net profit. It’s like taking off the head and the tail. If the company decides to calculate the investment fees and overhead costs higher than they really are or raise them, the singer is in danger of having his rights infringed and being swindled. Just looking at the role of SM Japan, this kind of high-handedness is evident.

More than anything, this means that Dong Bang Shin Ki were never informed of the ‘exact profit breakdown.’ That is to say [SM’s] method of profit distribution doesn’t fit a salary scheme or an incentive scheme or even a contractual scheme but a ‘receive-as-you-are-given’ scheme. It’s a contract that says ‘after taking everything out, this appears to be all that remains [for you].’

To wrap it all up…

I strongly believe that ‘the current contract under SM’ needs to be declared null and void. I want this backwards, renegade and unfair contract to be declared null. More than anything, even among today’s average Korean entertainment companies it’s difficult to find a 13-year contract, which makes this contract more than simply an unfair contract but also one that violates human rights.

Even before the injunction, I was already thinking that Dong Bang Shin Ki needed their own ‘independent label.’ Dong Bang Shin Ki’s fame was getting too big for SM and the conflicts between the two were getting bigger. If at that point both sides had entered negotiations peacefully, it would have brought so much meaning and progress to our country’s K-pop scene. But now everything has passed into the hands of the law. On the basis of the documents and evidence submitted by both sides, it is now up to the judiciary to issue a judicious and legitimate ruling.

There are many who worry about ‘Dong Bang Shin Ki’s breakup’. However, there’s no reason for society to interfere and concern itself with such a matter. Whether or not a group wants to break up is the business of that group and that group alone. Even if society or fans or their management company try to make them stay as they are, it won’t be possible. As a lot of people already know, Dong Bang Shin Ki has gone beyond Asia to receive the love of music fans from all over the world; they are a group we can be proud of. In the past 6 years they have achieved the work of 10 years. In this regard, our society owes them every possible humane treatment and rights as well as equal protection accorded everyone else.

If everything goes to its rightful place, I think it might be possible afterwards for the Dong Bang Shin Ki members to either depart from SM or establish new relations with the company as equal partners and continue together.

One thing is certain. In whatever manner, the members of Dong Bang Shin Ki will move forward, forging a new path toward the future. Naturally, walking a new path will inevitably lead to mistakes as well as plenty of trials and errors. They will need to face reality like they do an adventure. However, I think what they have chosen is ultimately their ‘future.’ This point comes as a big surprise. It makes me realise that they are much stronger and more incredible people than I ever thought they were. Although right now they stand sandwiched in between a harsh reality and an unattained ideal, if they continue to display the same level of sincerity and professionalism that they have thus far, I expect that they will make it to their new goal.

However, SM’s choice right now is unclear. They are standing at a fork in the road. But, unable to look into the ‘future’ they are attempting to lean on the past. They are trying to do things the old way, the way they’ve always done. They know no such thing as remorse. Even now there are lots of young singers at SM. Sincere and hardworking, they also are the future of Kpop, and their rights, just as the rights of Dong Bang Shin Ki, are important. This is a problem from which ‘the foreign-reach and pride of Kpop’ hangs in the balance. Under the present circumstances, the Fair Trade Commission has revealed its model contract, and so the status quo of the past cannot last long.

The problem that SM faces—I’m repeating myself, but it’s not a problem that only concerns the three members of Dong Bang Shin Ki. It’s a question of whether SM will stick to the past or whether it will learn to embrace the future. Although we continually hope that SM will pick the future, SM is not the type to easily change direction or mentality when it comes to such choices.

Source: piffania.com

후출처 동네방네 장담호언님

Shared and translated by: TheJYJFiles

~Do not remove without proper credits~


47 thoughts on “[Trans] Three Questions Regarding SM’s Position

  1. ah, yet another well-written article Jimmie!
    I never paid attention to any of that in AADBSK3.
    It really is hypocritical of SM to bring anything up about that when they did it so many times!
    Also, the comment about Junsu receiving 45,000 usd made me upset. I agree that even if it had been an advance payment, why would it have been this major issue?
    I’m glad it was shown to be nothing relevant and that the Judge did not permit SM to use that bit ever again.

  2. I’m a silent reader. I’ve read somewhere before that some fans want to report SME and South Korea to the UN’s International Labor Organization. I think we should do that as soon as possible. I’m already getting tired of this drag of a lawsuit. I don’t want JYJ to get tired. Maybe they already are, we just don’t know because they don’t and won’t tell. If the international scene step up on this, the South Korean government will have no choice but to look into the case fast. And because the contract is indeed a slave one, which is prohibited by the UN, JYJ will win for sure. But it has to be fast. Damn. In Korean age, Jaejoong will turn 27 on the 26th. Military service is just around the corner. South Korea has to know that the world is watching this case.

  3. I wish everyone who supports SME would read this article and then state with confidence they still support them. If they have even an inch of moral fiber, they will not be able to do so. Thank you so much for this article.

  4. Thank you Jimmie again and again for lighten me up!
    I am glad that I found you and this site. I have learned a lot in this 1 month time more then I know since the lawsuit began. everybody should read this site and learn the truth. I realized that I know nothing until now… I- fans like us really need people like you to learn what is going on in Korea.
    “Among the struck-dumb members, Xiah Junsu catches the eyes [of the managers], and he asks, “You don’t want to, Junsu?” Junsu replies, “Of course I want to!” with a straight face.” while we were watching them with smiles on our face, they were actually suffering a lot. I always tried not to judge their decision, I was just trying to understand them. I understood why JYJ left but still I can not understand why HM stayed….

    • This is what I think about HoMin at JYJ’s current situation.

      On 1/14/2011 While reading the JYJfile world press op-ed article on human rights, I wanted to post my pov but didn’t, because I don’t want to give free promo to HoMin or talk about these two because I still want to see HoMin finding their way out of SME. Now I come to realize the obstacle that preventing these two from getting out of SME. It isn’t external condition but it depends upon internal variables.
      Today I change my mind, I will post my comment, it isn’t to bash but to shred lights into the question I have in mind…. Why did HoMin defend SME? What will they gain so they will want to leave SME?
      HoMin are the one doesn’t benefit much about his moral rights or copyrights in his work.
      Yunho doesn’t compose much songs and his dance choreography is learned from other people.
      While his other members want to advance themselves in their music field, he is more content to keep what he has with SME.
      If he is to work on his own, he will face with more hardships but no guarantee good results. However with SME behind his promotion all he has to do that would be to remember his dance steps and SME also give him a title—leader [edited]
      With ChangMin, why does he have to care about human rights, moral rights or copyrights to his work? He doesn’t have to, it’s so obvious. Why care for something that it gives very little meaning beside his paycheck. It looks like his shortsighted but he is young and he already is making more money than his parent monthly salary.
      If one needs to look at his age and the last 7 years of his work, and then compares with other kids of the same age or older, he comes out ahead. It makes sense to stay with SME, he never have any worries about jobs until later in life or until his changes his internally views about life which may or may not happen.
      In the end, HoMin are more interested in what they can gain for themselves than in what they can achieve in making a better world for Korean entertainment industry.
      May every good things go to JYJ from now on ^^

      • What you’re saying is interesting, but I think we could go deeper. We should look at this issue from a life-long point of view.

        What most people know, is that when an idol reach 30, it’s very likely that they won’t sell anymore and retire.
        What most people don’t know, is that in the music industry, people who retire after having been very successful as artists are often offered jobs in the industry – manager, producer, choregrapher, etc. But to secure one of these jobs, it’s obvious that they need to have good relationships with everyone in the industry.
        Now, let’s take a closer look at HoMin. They know they won’t be idols forever. They know that, currently, it is almost impossible for an artist to survive without the support of a company (even though I believe we will make this change). They probably don’t want to start everything over. They probably don’t want to quit singing. And they probably don’t want to stop supporting their families. With all of these things taken into consideration, it’s easy to see why they decided to stand by SME.

        Even though I think that in terms of morality JYJ made the best choice possible (and that what they did will eventually change the very core of the industry), I just can’t blame HoMin.

  5. Thank you again for translating this text.

    Before reading this I didn’t even know that SM owned the restaurants that DBSK promoted in AADBK3 and other places. Normally it would be alright but it’s rather contradictory of them to accuse JYJ of tarnishing DBSK’s name with CreBeau if they are doing the same.

    This article needs to be reposted on all kpop fansites.

    Slightly out of topic but I was noticing the small smiley face in the bottom of the page. lol, it’s cute.

  6. e-table and the Japanese restaurant are SME businesses …did not know it. I should be surprised but I’m actually not. One more day and one more absurdity to shake my head at.

  7. I found out later not long since AADBSK3 was released that those two restaurants owed by SME. So, at that time I was thinking that ‘Wow, SME smart like hell’ using DBSK to promote the restaurant. Simple marketing but right on the target right?

    I noticed some of uncomfortable feeling between the members in AABDBSK3, if you try to look back in DVD, in Couple Talk you will notice Junsu mentioned something about ‘They’re having a hard time’ and Micky’s response to his expression was like rubbing his legs/back (I’m not sure) but this gave me a HINT that there was something going on. And later BAMMMMM they filed the lawsuit so all those pictures of Couple Talk striked back through my mind again.

    And in that ‘Line Up’ I saw it too. And I thought that the Host was quite hilarious though but I did noticed something you mentioned. Sigh, their expressions tell it all. No need to explain.

    However, all I wish is that the boys happiness. That’s all.

    • There was actually a Japanese promotion that was filmed (I don’t remember what it was called?) but sadly that showed me so clearly that not only did 3 of the members have problems with their company but Homin also had problems with them.

      It was so clear in that promotion. Only Yunho and Changmin were allowed to speak. There was a gap between JJ and Changmin. JJ was looking down the entire time. He wasn’t allowed to speak which was further emphasized by the fact that he even put the mic behind his back for a portion of the interview. Junsu was also looking down. Micky at one point smiled and tried to catch the eyes of the other two but they didn’t return any reaction. The whole atmosphere was awkward. (This happened after the lawsuit and during their Japanese album promotions)

      Also during AADBSK3 what hit me the most when I rewatched it was the Junsu and Yunho talk. Junsu kept mentioning “trust” and Yunho kept mentioning “patience”.

      • Oh, really I wonder what that show’s called.
        It should be their tokiwo tomete promotion or before that because I thought that the situation between them gotten worse cuz they had to interview seperately. And I found it sooooo uncomfortable.
        But when you mentioned about Yoonho and Junsu couple talk, I didn’t realize that part but what struk me the most is Yoosu couple talk and that was the first time I saw Junsu in different perspective. Junsu who I once saw him as the most adorable and cutest wasn’t there but the person I saw at that time is a MAN who had difficult time but couldn’t manage to say it all. And I also find it weird that Jaejoong kept mentioning about how he was so lonely at that time and need a girlfriend lol.
        But I do love Jaejoong and Changmin couple talk though, no wonder what Jaejoong looked so down in that situation you mentioned above,
        Too much things to noticed right -sigh-

      • @pheonixia & @Move On: That awkward promotion in Japan was “Best Hits Kayosai” from 2009.11.26, but the part where you can see the gap & uneasiness was in the pre-show interview. They performed “Stand By U” on the show.

      • @sakana17
        Ah, I finally know the name of that show.
        I remember this show and I kind agree but I think I have to re-watch it again lol.
        I actually don’t wanna see those awkward time ever again but when someone mentioned it so I kinda want to see how things was going that time.
        At that time I was thinking that ‘Oh, SME interfered their relationship, but to be honest I’m not sure for now’ But who knows all the truth right, I just tell myself to move on and let go.

        Thank you for your info.

    • Reading the comments first, lol but I agree there were some hints during the couple talk especially during the HoSu and YooSu talks. The atmosphere was just gloomy towards the end.

  8. Hmm… sorry… but I doubt abt this sentences
    “However, Dong Bang Shin Ki was unable to receive royalties, copyright, concert or appearance proceeds but received instead the bare minimum from the above arrangement”

    Its true prior to 2008, tvxq didnt receive any profit due to low sales. According to (http://entertainment.howstuffworks.com/music-royalties6.htm), profit will be hard to earn unless the album sales reach 1 million copies. Even in intrnatonal music industry, artist only earn 1% from sales even the albums mark on 1 million due to production costs… But I think SME still pay their artists instead of low sales. CSJH and Gavy NJ are the examples. They barely release an album and their album sales are pretty low, but they still got payment from sme.

    I ve read tvxq contracts ( I d/l from here http://seoul.scourt.go.kr/dcboard/DcNewsViewAction.work?seqnum=6353&gubun=44) and surprisingly I found this…
    Its well known tht tvxq is a group tht SME created for Asia market, so they activities wont be restricted in korea only. True tht in korea, tvxq gains profit if album sales is more thn 50,000, which is 2%-5% of SALES not profit but SALES. Which is quite BIG for small market like korea, while the 95-98% is distributed for production cost, copyright cost, cds, and etc which for group as big as tvxq, i bet it ll cost alot.

    Royalties… Since TVXQ in the past years is more active in japan rather than in korea. They have overseas contracts, which include:
    tvxq earns 70% profits nets from performance royalty, 70% net profits from the song and lyrics they created, 65% net profits from regular appearance in TV shows/CF, and so on… So I conclude that the boys got good payments…

    And as TVXQ has exclusive contract with SME, means that TVXQ only works for SME only, which includes promotion for SME side.

    Maybe many think tht SME is a BIG FAT company in SK that can rule everything in SK, but telling the truth… they’re not… Yes they’re one of the biggest in entertainment company with 98 million won revenue, but they’re only middle class company in SK. Even SBS/KBS/MBC earn more revenue than SME with 706 million USD!

    I try to be neutral here, but on the other hand… lets be realistic. If SME really does not pay their artists to that level, why so many SME artists and workers still linger in the company? I dont really buy tht SME is pure evil. I know they’re not the best company, they have flaws. But doesnt mean they’re pure evil.

    I agree in the past, tvxq encounters alot of difficulties, fatigues, and tiredness. I dont say its a good thing. Its really bad indeed, but those events tht make tvxq as big as today. I do feel sad for tvxq today… but yeah… life goes on. If God forbid, they ll meet again in a stage. 🙂

    Really hope the best for all of them.

    Sorry for my bad english. I appreciate your opinions.

  9. Reading this just made me feel for the boys more……………they have had to suffer so many things…………

    let’s work together so that we can help them.

    and this article seriously needs to be spread as widely as possible !!!!!!!!!

  10. Pingback: (TRANS) Three Questions Regarding SM’s Position « jyj3

  11. jimmie–will the ahjumma fans in korea mass purchase their CD/book Their Rooms? i think it is very important that the sales be very high as this will get additional publicity

  12. I ABSOLUTELY LOVE THIS WEBSITE!!! I’ve gain so much insight on the lawsuit that I would’ve never knew about if it wasn’t for this site and I greatly appreciate it.=) Thank you so much! I wish I could do something to help JYJ and stop SM from using dirty tricks to delay the court hearing =.=…and I hate it how some people are saying how “SM can’t influence the court delay” but they obviously can since the witness for SM didn’t show up! Can’t the court issue a subpoena to “force” the witness to show up…? I really want this whole thing to end…=(

    • No, I don’t think that the delay is so much because of the court delay. Here’s Jimmie’s explanation for it (lol, Jimmie – I am spreading the words around)
      You can tweet this.

      Dear all,

      So I just got off the phone with my Korean prosecutor friend. According to him, in the Korean court system, the authority of the judge to subpoena a witness only lies with judges of the CRIMINAL courts and higher. The JYJ v. SM case is taking place in a CIVIL court, and one at the lowest level too (district level). The judge isn’t as free to issue subpoenas when a witness doesn’t show up. With that said, there IS a limit to the witness’ ability to be absent….at some point the judge CAN force the person to show up, just not as easily as a criminal court judge can. He also said JYJ could’ve gone to the criminal court and it might have been better for them…because with the way things are right now on the level of the civil court, the burden of proof lies with JYJ (to prove the contract is so horrible and FRAUDULENT that it’s invalid). He says anticipate a hard fight, but stay optimistic ^^.

      It still sucks how things went down yesterday, but I hope you all understand a bit better now.


      Thanks, Jimmie!

      • okay, thanks… hmmm this just got me thinking though, why didn’t JYJ’s lawyers opt for a criminal case instead of a civil case? i believe they would have the ability to tell if this case is valid enough to be raised as a criminal case right?
        i’m just curious, really… this is more like a rhetorical question… lols

  13. WOW i did not knw tht the restaurent they went to for AADBSK3 was owned by SME. Whats next SME? Seriously tht company i really hate. I feel like protesting against tht company. They should seriously just admit their fails and pay for what they did. I was wondering why they (DBSK) were alway so very tired and now I look back at their smiles when they were under your company and i think they were really suffering behind tht smile. OUr boys deserve better than you guys and they well win. But wtf got into HoMin mind, why they hell would they not want to file a lawsuit against SME.

    • I agree with you! I REALLY HATE that evil company!! I really want to bring that company down or kick the evil people out of the company! They should all go into jail for such inhuman acts!

      However, please respect HoMin who chose to stay. Although I don’t know why they chose to stay (??), that question surrounded me since the day I started loving the 5 boys (yup, I’m a new fan who fell into this lovely trap XD), please respect their decision^^ One thing I believe is that they love each other SO much! Therefore, I don’t believe that they hated each other! In that so called “revealing” press con, Yunho said he doesn’t blame anyone; their relationship was not bad. Although Changmin was a little disappointed(?? maybe), I still believe that he LOVES his hyungs as he always did^^ Their LOVE didn’t change and will never change^^

      • OFC i respect HoMin decision, i support/love them! I just hate SME and their ways. One day HoMin and JYL well reunite. And yupp they love each other nothing can change tht.

  14. I want to bring every article in this website to Hotel girls and read aloud in front of them words by words and have a real discussion. I wonder what their logic can be… Thanks Jimmie, this website is so timely.. well I wish it could have opened earlier, but until “hell-gate” was opened by sm, it was not possible even to talk about these to all-5 fans…

  15. ▲What is the relationship between Crebeau and the three members of TVXQ?
    =Crebeau was created over 12 years ago. It has been over ten years since we began using sheep placenta as a main ingredient in the cosmetics. This can be easily verified in our homepage or on our certificate of authentication. We have over 100 stores in Korea alone. We are also a company that has spread to China and Japan. TVXQ’s Xiah Junsu, Micky Yoochun and YoungWoong Jaejoong made only small investments in our company.

    ▲When you say a ‘small investment’ by the three members of TVXQ. How small is their investment?
    =The three members invested less than 100 million Won each in the Chinese branch of our company. Crebeau itself invested more than 3 billion Won for the Chinese expansion. The three members’ investments combined are only worth around 300 million Won. It is only around 1/10 of all of the investments. Xiah Junsu’s father also showed interest in investing. We gave him the right a chain store outside of Seoul. All the investment money related to TVXQ does not amount to much.

    ▲SM Entertainment is blaming the cosmetic company for the TVXQ dispute.
    =We find it quite absurd that we are being blamed for the dispute between TVXQ and SM Entertainment. Many people were witness to TVXQ’s Xiah Junsu receiving permission from SM to invest in the company. All the procedures we had to go through were legally correct and there were no problems. SM Entertainment blamed us only after the dispute occurred between the agency and members of TVXQ. Because of SM, our work has been disrupted and our image has been tarnished.

    Source: [sports seoul+DNBN]
    Translation credits: jeeelim5@tohosomnia.net
    Shared by: tohosomnia.net
    Do not remove/add on any credits

    I dont know why you keep bringing up the cosmetic company, thats not the reason why JYJ sued. Where did 62.5% come from and plus SM let them invest and theres even pictures of SM managers going with them to china about this.
    You shold read this if you want to know more about the SM-Crebeau problem, it even contains pictures of the managers and the original korean article.

    SM Busted by CreBeau, Shown to have Lied about CreBeau Involvement?

    And about that 13 year contract term, it might have been okay back then(2004) but I think after that one actress’s suicide 2 years ago the FTC change their model contract and the maximum time became 7 years. The recent activity by FTC is Here

  16. Omg! I have no idea that the restaurants the boys went to in AADBSK3 are owned by SM people. Shame. It is obvious that the agency only use them as a tool to produce more and more money.

    I feel like crying reading this article. To imagine how suffering the boys must be to stay in that agency for so long. It hurts me. JYJ please be strong.

    Thanks for sharing this article. ❤

  17. Quality group has quality fans…
    I love this websites which can give me a clearer and non-bias picture on JYJ/SM conflicts. There are no other words can best describe what’s always in my mind as what you’ve written in this article:…..
    There are many who worry about ‘Dong Bang Shin Ki’s breakup’. However, there’s no reason for society to interfere and concern itself with such a matter. Whether or not a group wants to break up is the business of that group and that group alone. Even if society or fans or their management company try to make them stay as they are, it won’t be possible.

    JYJ – go your own way and you definitely will succeed. A brighter future in ahead of you as long as you keep faiths & trusts in your young hearts. No need to regret… at least you try…


  18. i saw this video about hangeng and his SM experience and it was appalling
    see attached link
    therefore, when (ignorant) people say this is all about money, they are wrong

  19. JYJ!
    Always keep you heads up…
    JYJ is a quality group with quality fans…
    No big deals on no commercials~~~
    So what!!!
    Classical high-end brands rarely made commercials
    they never faded…

  20. I’m glad this site has addressed issues revolving around the lawsuit. Some of these information were swept under the rug of spazz-worthy posts in the fansites, so it’s hard for fans to keep up with the lawsuit. Keep up the good work ^^

  21. I gained quite a lot of information from this site, which is in-depth with solid backups for your logic (I saluted for that).
    But I would like to know your opinion about:
    – Parents involvement in this lawsuit, especially about how Yunho’s father explicitly talked bad about 3 members
    – Why it’s SM Entertainment who first filed a lawsuit (not injunction case) against 3 members instead of vice versa?
    – Status quo that many fans of other 2 members are embracing for reasoning 2 members’ staying in SM Entertainment
    – Exactly what is this ‘authentic loyalty’ idea in Kpop that many Kpop fans, including oversea fans affected, cling to? And how this loyalty affects Kpop business in general?

    If these issues can be addressed, I’m really thankful for your effort and valued time spent.

    • – Parents involvement in this lawsuit, especially about how Yunho’s father explicitly talked bad about 3 members
      ahh… that infamous letter by Yunho’s Dad!!

  22. Pingback: [AADBSK3 Cut - Eng Sub] TVXQ Good Night Part 9/15 | Make Cent Marketing Environment

  23. Pingback: [OPINION] Three Questions Regarding SM’s Position | JYJ3

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