China Court: "TVXQ Has Nothing To Do With The Cosmetics Company Promotion"

SM Entertainment had attributed the main reason for the "TVXQ's Lawsuit" to be the cosmetics investment business by some of the TVXQ's members and used this reason as justification to propose a 2.2 billion won in damages from the 3 members.

The declaration that SM Entertainment had submitted to Seoul Central District Court on 14th April claimed that "Some TVXQ members had invested in a cosmetic company which resulted to be the beginning of the conflict. They have used TVXQ's name and portrait without the company's consent and that have violated the exclusive contract. However, they denied the effectiveness of the exclusive contract and proposed the disposition for the effectiveness of the termination of the exclusive contract". During November last year, China Beijing Kowloon Station Century Culture Communication Co. Ltd* (Gao Jian Wen, Representative. Also known as Beijing Kowloon Station Inc.) had used "The fraud of Crebeau which is the collaboration between TVXQ's 3 members and Korea Cosmetics Company, Wisyaplus had caused their damages" as the reason to apply for legal action for the damages compensation at the District Court. Recently, the cosmetics company, Wisyaplus announced that "Beijing Haidian District People's Court rejected the Beijing Kowloon Station Inc's claims" and revealed the China Court's arbitration decision documents.

According to the open verdict, the court had rejected all the arbitration applications from the applicant (Beijing Kowloon Station Inc.) and the applicant will bear all the costs for the arbitration (38,470 yuan = 5,635 USD). TVXQ's 3 members has nothing to do with the cosmetics company promotion and this was ultimately confirmed by the China Court. And SM Entertainment have been using the photos of the 3 members attending the investment seminars to suspect if the 3 members had directly or indirectly carry out promotional activities.

On the other hand, the cosmetic company's representative, President Kang Suk-won had expressed towards the accusation of SM Entertainment attributing the main cause of the TVXQ's lawsuit with the members' cosmetics business that "The police investigation has already shown that the reason behind the TVXQ's lawsuit has nothing to do with the cosmetics. However, SM Entertainment once again entangled with it. Therefore, our company will propose a reputation damage lawsuit again for the third time".

President Kang Suk-won claimed that "The reasons why TVXQ's 3 members had filed a lawsuit towards SM Entertainment are because of the unfair contractual relationship and unjust distribution of income distribution. This fact has been ruling in the injunction application and it was confirmed. However, such behaviour seems to have become a kind of inertia for SM Entertainment in order to rescue its company reputation".

Wisyaplus had already filed the reputation damage and impede business lawsuit towards SM Entertainment twice in August and November last year. Seoul Gangnam Police Department investigation ended in February and make the decision of without detention and transfer investigation towards SM Entertainment representative, Kim Youngmin. At that point of time, the police had already made a judgement that "The lawsuit of ending the long term exclusive contracts requested by TVXQ's 3 members had nothing to do with the cosmetics investment".

*(T/N: This is the rough translation of the company name as I can't find the English name for it)


Source: vandyxu527 @ TVXQbaidubar + www.jaetime.com + DNBN
Translation: sicashinki @ OneTVXQ.com
Credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }
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