Junsu, JaeJoong and Yoochun lawsuit SM, Will DBSK really disband?

Remember last month about the "supposed false rumor" that TVXQ / DBSK / Tohoshinki was breaking up? Well, it seems that information may have actually been true. According to this source, it states that on July 31st, 3 TVXQ Members, specifically Micky Yoochun, Jaejoong, and Xiah Junsu filed an injunction against SM Entertainment in the Seoul Central District Court to remove the "non exclusivity clause" in their contract.

Yunho and Changmin have decided not to file an injunction. Basically in a nutshell, the three of them supposedly had meetings with a Chinese cosmetic company and launched a new cosmetic line called CreBeau. They invested some of their own money and also in turn received some lucrative gifts from the Chinese company as an incentive package for signing up and investing. Some of the rumored gifts includes Micky's Audi R8 and the townhouse for Xiah's parents.

SM Entertainment supposedly got wind of this news and because SM Entertainment has the "exclusivity clause" in their contract, SM Entertainment tried to prevent this from happening. Unhappy with this, and already unhappy that they feel they're being underpaid profit-wise from album sales, you can understand why they're trying to terminate the "exclusivity clause" in their contracts. There's also rumors that if a favorable agreement isn't met, the three will be leaving the group for good.

SM Entertainment via phone to one of the Korean news media outlets stated that they are aware of the situation, the board of directors is having an emergency meeting and are discussing what to do. They'll have an official statement soon.

Wow, this is crazy. I wonder how this will effect their arrangements with AVEX in Japan? This isn't new for SM Entertainment as they had their problems with H.O.T. in the past. I just hope that this doesn't result in an actual disbandment and that everyone can come to peace, for themselves and most importantly their fans. TVXQ is a very talented group and they shouldn't break up, they have a great thing going.

Update:
Update from the lawyers representing Micky, Jaejoong, and Xiah: The three and the lawyers have been discussing this for over 2 months. They tried to settle this with SM Entertainment through negotiations behind closed doors, but they broke down therefore the injunction. The contracts are for 13 years and the profit splits are 80% to SM Entertainment and 20% to TVXQ (divided by 5 for each member). The three are prepared to go to court and file a lawsuit if the exclusivity clause isn't dropped. Sources: Source 1, Source 2, Source 3

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updates:

There are now new UNOFFICIAL updates floating around in Korea as millions of Cassopeias are going sleepless and searching for more information about their beloved group. Apparently, Yoochun and Junsu have been going around together looking for law firms during their vacation so this was certainly not something that happened overnight.

While all seems calm for now, following the official statement from SM Entertainment just after midnight, many are awaiting with anxiety with regards to what will happen in the morning. Many are wondering if SM Entertainment are just papering over the cracks that have become more apparent today. As of now, all notices and schedules for TVXQ on the official SM Entertainment homepage have been deleted which includes the SM Town Concert schedule.

Perhaps not strange to many but odd considering that they are SM Entertainment's #1 group now, TVXQ has had a 13 year "slave contract" with SM Entertainment. TVXQ members have only received a 0.5% increase in salary over the past 5 years despite their amazing success and huge fanbase. All 5 members are actually preparing to sue SM Entertainment because of this, not just Junsu, Yoochun, and Jaejoong.

Junsu's dad had been the representative of the 5 members and was at the head of the preparations to sue SM Entertainment. But SM entertainment found out about the pending lawsuit and proceeded to "bully around" Junsu. Yunho and Changmin aren't sueing SM at the moment, but neither are they resigning with SM at the end of their contract. Contrary to rumors, there has been no conflict within TVXQ members, and the whole issue is been between the members and SM Entertainment.

SM has been taking from 70%-90% of the profits that TVXQ makes, leaving only 10%-30% for the members themselves. Most people think that Jaejoong, Yoochun, and Junsu will win their case because it is against Korean law to make "slave contracts." And slave contracts they are, receiving less than half is a stretch, but 10%?!?!

Ever since Jaejoong, Yoochun, and Junsu started the cosmetics endorsements, SM Entertainment began to try and put down their efforts, wondering why the members were trying to go into business without first consulting with them. Junsu was being pushed around by a lot of upper officials in SM Entertainment because of his dad's involvement and his private endorsements.

Yunho and Changmin aren't betraying TVXQ for not being involved in the law suit. They all have wanted to leave SM Entertainment, but couldn't because of their contracts. Even if they had wanted to leave, the amount of money fighting lawsuits would be enormous. All 5 members are standing together against SM. It is very distinct that this is not a TVXQ vs. TVXQ fight, but rather a TVXQ against SM fight.

It should be noted that Jaejoong, Yoochun, and Junsu do not want to completely terminate their contract, but they do want major revisions to be done to their contract so that the corrupted control that SM Entertainment has over them can be dissolved.

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updates:

The 3 members of popular group TVXQ, Jaejoong, Junsu, and Yoochun applied a provisional disposition against SM Entertainment in Seoul Central District Court to remove the “exclusivity clause” in their contract, the factors behind this actions has received attention from public.

Why does the agency fall into this conflict with TVXQ? The factors can be summarized into three kinds of great.

1. TVXQ has different contracts in Korea with SM Entertainment and in Japan with AVEX. While TVXQ is constantly being active in Japan, it does no good with their contract in Korea. If they continue to be active in Japan like this, the Korea activities will be pretty much harmed. There’s a possibility of revenue aspects which is influenced this decision. Whether to focus in Japan or Korea, this creates a conflict within the agency.


2. Difference opinions among the members. There’s a serious disagreements among the members of TVXQ, The group who decided to leave the agency, Hero Jaejoong, Micky Yoochun, and Xiah Junsu, is having conflict with the rest members, U-Know Yunho and Choikang Changmin, who wanted to remain to stay.

3. TVXQ is less active recently domestically. There has been accumulated complaints about TVXQ who is more focusing on Japan than Korea. The fact that they’re concerning more about the number of copies sold in Japan than in Korea is also reported as the pressure.

Also the recent renewal exclusive contract for 7 years which makes them to feel oppression from the agency. TVXQ members are known to be in agony about renewing the seven-year contract time.

Meanwhile, according to CBS News, by now U-Know Yunho and Choikang Changmin are in process of applying their provisional disposition

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Updates:

A bad day for fans of one of the most popular idol group in Korea, Asia and the world. The day started off with rumors of TVXQ/DBSK disbanding, which was followed swiftly by SM Entertainment representatives stating, that they will pretty much do whatever it takes to keep TVXQ together.

This major conflict resulted in Lee Soo Man, owner of SM Entertainment, to fly back home to Korea from his America headquarters, to try and resolve the matter personally. At this time however, there are still no new developments about the progress of the negotiations. There's only speculation and rumors of what's to come.

A Music Industry Expert stated, "Usually when an issue like this arises, it's very difficult to come to a resolution. Currently the 5 members of TVXQ are split into two teams. In addition, the animosity that has come about between SM Entertainment and TVXQ, will make it very difficult for all 5 members of TVXQ to remain together."

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updates:

090801 TVXQ’’s Three Members File For A ‘preservation of evidence’ So That They Can Know Of Their Exact Income

SM are to hand in all “account books, the contract, receipts, transfer slips and all other documents” as the members file for a ‘preservation of evidence’

No Cut News, Reporter Kim Dae Oh

It has been found that YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu, members of boy band ‘TVXQ’, have filed a preservation of evidence request form along with their lawsuit against SM Entertainment.

The Exclusive Contract Validity Suspension and Provisional Disposition Request Form that was filed against their current entertainment agency, SM Entertainment, was followed by a lot of attention towards the uncertain future of TVXQ and many people were curious as to why they also filed for a preservation of evidence request.

Through the law firm Sejong, the three members YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu filed for the preservation of evidence request. This can be seen as an act of gathering evidence in the case that it is found that SM has not been faithful to keeping the contract of TVXQ in accordance with the law.


This conclusion can be made because when one is face with a preservation of evidence request form, they must hand in all account books, contracts, receipts, transfer slips and all other documents related to the parties in question.

-part edited out-

However, Lawyer Lim Sang Hyuk from law firm Sejong, who is representing the three members in this case, stated in reference to SM’s official statement that, “The cosmetic company, which may have caused some disagreements amongst TVXQ in an emotional point of view, was not the reason TVXQ filed the lawsuit. After reading the official statement of SM that was released on the first of August, we found that they made the cosmetic company a larger issue than what it actually is. It is wrong to think that TVXQ would file a lawsuit just because of a company that isn’t even TVXQ’s main work priority.”

090801 ‘In Danger Of Disbanding’ TVXQ’s Three Members File A Preservation Of Evidence Request Form

Star News, Reporter Kim Jiyeon

Popular idol group TVXQ’s members Youngwoong Jaejoong, Micky Yoochun, and Xiah Junsu have filed for a preservation of evidence request to check their exact income in the midst of the Exclusive Contract Validity Suspension and Provisional Disposition Request Form they filed against SM Entertainment.

Lawyer Lim Sang Hyuk of Sejong Law Firm, who is in representing YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu in this case, had a phone conversation with Money Today Star News on the 1st and said, “In order to know of TVXQ’s exact income, we have filed for a preservation of evidence request along with the Exclusive Contract Validity Suspension and Provisional Disposition Request Form.”

Lawyer Lim said they filed the preservation of evidence request form because, “The members have never been told by their entertainment agency of the exact amount of the income TVXQ earn,” and “Usually in the case of a dispute between an exclusive contract, the people who are filing the lawsuit present a sum of money they wish to receive as compensation after going through the contract. However, the members do not, and have never known the exact amount of their income and that is why we have filed this preservation of evidence request form.”

The three members filed a Exclusive Contract Validity Suspension and Provisional Disposition Request Form against SM Entertainment through the law firm on July 31st. However, the group’s leader U-Know Yunho and the youngest member Choikang Changmin did not participate in this lawsuit.

credits: Allkpop & sharingyoochun

I can't stand Lee soo man now he make me want to murder him!!!!

me too, do you want me to make you a mod?

sure^^

whay up!!!
im here!!!!
and i agree with both of you!

yay tammy's here^^

i am i am!!
XD

Tammy <3 DBSK wrote:

i am i am!!
XD

hehe glad u r^^

Sachie wrote:

me too, do you want me to make you a mod?

unnie there is also an anti face book about lee soo man!!!

seriously?!
how many members?
lets invite them!

Tammy <3 DBSK wrote:

seriously?!
how many members?
lets invite them!

im not sure also!!

I'm already a member of that anti-LSM fanclub

please give me the link..
ill make a shout out to them

Arigatou Gozai Masu!
Xie Xie ni!
Kamsahamnida

I've honestly never like SooMan from the start. I didn't even know about him and I already had a bad vibe about him.
I'm glad that the boys are suing him. Because honestly, it's about time.

CassiopeianDream wrote:

I've honestly never like SooMan from the start. I didn't even know about him and I already had a bad vibe about him.
I'm glad that the boys are suing him. Because honestly, it's about time.

hehehe same here!!!
they need to sue him so he wont have any penny in his pocket!!

I posted the updates in the first post...read the last updates to know what happened

Sachie wrote:

I posted the updates in the first post...read the last updates to know what happened

since u two came back now its mine turn to sleep^^

I glad they are about to sue that man but...
I'm also really afraid...we have no idea of what that man is capable of....

i know!!
but we also have no idea what cassies are capable of..
we never know

that's right!
ELF has 0.03% of the company because they wanted SuJu to be just 13 and nothing more!
That's really good!

yeah,
just a leader to lead them and anything can happen

yep!
because with ELF, SM is powerless to do what they want

really?
why is that?