TVXQ is uset, but hopes for the best

TVXQ and SM Entertainment's first court hearing took place today August 21st, 2009 at 11:40am KST.

TVXQ's lawyer stated "TVXQ members are very upset about the entire situation, but hopes that the lawsuit will end well." In addition, "We do not want TVXQ to split up. And even if they do change management companies, there is still a chance that TVXQ will remain together."

SM Entertainment's lawyer stated, "There are no personal grudges against the members, however this lawsuit is an enormous loss to the company, therefore we wish to resolve this as quickly as possible and have TVXQ continue their activities." In addition, SME stated that, "In regards to the members running Chinese based cosmetics businesses, SM only intervened as it could potentially hurt their image. That was the only reason."

The 1 hour and 20 minute hearing over exclusive contract rights and improper compensation is now over, however SM Entertainment is required to submit financial proof and documentation by September 11th, 2009, in order for the courts to make a final judgment.

Source: allkpop