After everything that has happened tonight, many are waiting for the official words from SM Entertainment, and allkpop is first to bring you the statements from a press conference that just took place!
The entertainment company held a press conference today and told their
side of the story regarding their legal dispute with three members of
TVXQ/DBSK. In addition to
a statement by Yunho and Changmin, the two members who did not take legal actions against SME, and
statements by their fathers, SME's own representatives spoke up as well; Mr. Kim Young Min, the CEO of the company, stated the following.
Back when we first advanced to Japanese market with S.E.S.,
major entertainment companies in Japan normally asked for contracts in
length from 5 to 7 years. As long as the entertainer stayed with the
company for the stated amount of time, the company would not cease
investment into the entertainer. When we first planned for BoA
to work in Japan, we set the length of the contract at 10 years to
allow for long-term investment and a partnership with a major Japanese
entertainment company. This resulted in SME working with AVEX, the largest entertainment company in Japan. BoA's great success in Japan was a product of such planning.
When we first planned for DBSK, we wanted to make them the number one
artist in Asia. Five members and their parents shared such vision and
agreed to add 3 years to initial 10 year contract. The members and
their parents agreed to the contract because they found the vision as
the number one artist in Asia, constant support from SM, plans to go
abroad and continuous investment into the group very appealing.
Everyone thoroughly reviewed the contract and agreed to all clauses. To
keep the promise of advancement into Japan, SME invested over $4 mil
into DBSK despite poor financial condition that the company was in.
After 5 years in Japan, we can finally say that we are successful. It
is unfair to focus merely on the number 13 without any background
knowledge of how the contract was made and the goals and visions shared
between SME and DBSK.
Kim Young Min then revealed some startling events that had occurred earlier this year.
On January 6, 2009, the three members told SM that they
were going to China for a vacation; but in fact, they attended a
meeting with the beauty product company's Chinese subsidiary to talk
about investment into the company. We only realized of the deal after
photos of them promoting the company surfaced online. We then learned
that the three members are board members of the Chinese subsidiary and
that they even carry business cards of the company with their name and
position engraved.
The three members demanded an increase in their share in profit and we
accepted their demands. In April, we had a dinner party after our
concert in China. The three members told members of other groups about
how much they trusted in SM. Shortly after in May, a Japanese fan asked
AVEX's customer service department regarding an event by the beauty
product company which claimed that the winner would have dinner with
DBSK. SME feared that losses resulting from matters related to the
beauty product business would be impossible to recover from. We wanted
to review the members' contracts with the beauty product company to
protect the members from potential dangers but they refused to share
the contract with SME and did not take any actions to relieve SME from
our concerns regarding their investment into that company. In June, a
major beauty product company contacted us and said that they wanted to
use DBSK in their commercials but the three members refused due to
their own interest in beauty product business. Shortly after they took
legal actions against SME.
The truth face of their action is a fraud. A fraud which fooled the
entire nation with words such as "human rights" and "slavery".
Regarding the recent court ruling; three members are now free to pursue
personal projects, however all DBSK-related work must be done through
SME. Yunho and Changmin intend to promote DBSK in Korea next spring,
and we feel that it should be planned at least six months in advance.
SME asks the three members to respond to this by November 12th.
With allegations against them coming from the two members, their
parents and SME, the other three members are sure to defend themselves
from these claims.
Source: Allkpop
Things are not looking good.....