[NEWS] Another SM Official Statement

TVXQ's agency SM Entertainment has put forth another official statement to refute the one given by YoungWoong Jaejoong, Micky Yoochun and Xiah Junsu's side today.

SM sent their statement to various reporters at 8 o'clock on August 3rd and the content was full of points that refuted what Sejong had stated.

SM began off by responding to Sejong's statement that there was a clause in the contract that stated that unless TVXQ sold 500K copies, they would not receive a single Won from the album sales. SME stated, "TVXQ has received, from when they debuted till now, a total of 11 billion Won (9.2 billion won given during the time + 1.77 billion won given beforehand) , luxury foreign cars (bonuses with no relevance to the contract). In contrast, SM Entertainment was in a deficit for four years after TVXQ's debut. The opposition (Sejong) has disregarded the fact that income divisions from CFs, events, and other income sources differs depending on the overall economic situation. They are only focusing on one bad side of this contract instead of looking at it as a whole."

On Sejong's statements about the 13-year 'lifetime contracts,' SM stated that, "The Fair Trade Committee's seven year contract urge does not apply to singers. Also, it states that for singers who are working overseas, there is no limit to how long the contract can be. "

SM stated that, "We have been through five changes already in the contract with the members of TVXQ. And of those two, the clause regarding compensation if TVXQ were to cancel the contract was revised by the Fair Trade Committee," and "The other three times concerned the divisions of income and the first revision was January 2004 when they debuted. The next two times were in February of 2007 and 2009."

Also, in regard to Sejong's statement that, "We (Sejong) have tried numerous times to talk with SME about a compromise," SME stated, "They have only started asking for a suspension of their exclusive contract after the three members sent us a certification of contents through the firm Sejong in June 2009."

In reference to the members' statements that they were only sleeping 3~4 hours per day which resulted in bad health, SM said, "We have always compromised schedules for their health." And in regards to the cosmetic company, which Sejong stated was not the main cause of this lawsuit, SM stated, "This (the cosmetic company) is the real reason why they filed this lawsuit. This statement can be solidified by the fact that only the three members who have ties to the cosmetic company are filing the lawsuit."

Regarding TVXQ's future, SM said, "We would like to solve this problem quickly with the three members who filed this lawsuit."


Note: 11 billion won = approx $9 million


Source: [joy news + DNBN]
Translation credits: jeeelim5@iscreamshinki.net
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My own opinion: If they really want to solve this problem soon and not create anymore damage coughSTOCKSFAILINGcough they should just REVISE the contract. That's what the three wants anyway. Is that hard to understand? If SM is really thinking, they better finish this soon as they can before more drastic things happen.