Monday, August 3, 2009


It’s time to clear the air of this whole debacle.
A lot of speculation and panic erupted after the news of Kim Jun-su, Kim Jae-joong, and Park Yoo-chun of TVXQ filing a provision disposition to disposition to terminate the exclusive right effects on their contract with SM Entertainment on July 31st. Within the past three days, Cassiopeians have been counting their lucky stars that their precious TVXQ will not disband due to this matter. Well, three days is long enough, so on August 3rd, the three members released an official press release through Se-jong addressing everyone’s fears and clarifying any discrepancies speculated by the press.

1. During the five years after their debut, the three members were getting really tired mentally and physically because of the one-sided schedule of company.
Xiah, Hero, and Micky are the members of group TVXQ, and they made debut in 2004. They had to travel to Korea, Japan, and China, and perform their schedules by sleeping only 3~4 hours a day, except one week in a year based on their management company, SM’s instructions. Their mental and physical health conditions were getting worse due to the exhausting schedules, but SM tried to enter them into the market abroad and made unreasonable one-sided schedules. Finally, the three members realized that they cannot achieve what they want as artists in SM, as they would be used as just tools to make profit of SM.

2. The period of 13 years actually means whole life contract.
According to their contract, the contract period is 13 years, which would amount to more than 15 years, as the thirteen years do not apply to the time in compulsory military service. That means there is more than 10 years remaining on their current contract, which would essentially mean until their retirement. Also if they break the contract, they would be required to pay more than three times the total investment, or two times the lost profit. Even under the possibility of canceling the contract with the mutual agreement of SM, TVXQ would be required to pay the penalty. In other words, it was actually be impossible to break the contract due to the millions of won involved, so they have no choice but to stay with SM.

3. The members never got the appropriate level of treatment for the amount of effort that they put in.
Not only did the members not receive a deposit; according to the initial contract for album profit allotment, only when an album sold 500,000 copies in one day, could they get $10,000 per member, and when albums sold less than 500,000 copies, the members could not receive any earnings. This was changed on February 6, 2009, yet the amount of money the members receive from the albums is still only 0.4%~1% per person, depending on the album sales.

4. The members requested changes to inappropriate contract points several times, but SM did not care.
In this situation, the three members requested revision be made on their current inappropriate contract several times, but SM focuses on the concern over their cosmetic line business that completely sidesteps the core of the issue. Nevertheless, the three members wish to find a way to smooth over the problem by requesting a conversation with SM, but SM did not answer it. Also, based on the attitude they showed us, they have realized they cannot solve this problem by simply settling in a conference, and finally decided to take legal action.

5. The cosmetic line investment is not related to their entertainment activities, nor does it have anything to do with this situation. The true essence of this situation would be the inappropriate contract.
SM made a public announcement that the members made provisional disposition due to the cosmetic line investment, but the investment has nothing with this situation. The cosmetic line investment that SM is referring to is the investment the three members made when they were entering the market in China, and it is a financial investment that has no correlation with their entertainment activities. It does not make any sense that the members would make a provisional disposition and put everything they achieved as TVXQ at stake just to invest 100 thousand dollars in a beauty line. The main concern that the members want to focus on is their inappropriate contract terms, and SM should cease using their beauty line investment to distract from the central issue.

6. The members do not want to disband TVXQ and just want to free themselves from unreasonable contract restraints.
Many fans are worried about the possible disbanding of TVXQ due to this situation. However, making this provisional disposition does not signal the end of TVXQ. Now, three members are participating in the lawsuit due to a difference of ideas regarding how to approach this situation, but there is no problem between the members. Nothing has changed and they wish to keep the promise they made to their fans that they would stay united as one. If this situation is resolved according and the unreasonable clauses are lifted from their contract, they will be free to be one in front of their fans.

7. We think of this as another chance to mature.
We are sorry to the fans that care about TVXQ so much who may be shocked and dismayed with our actions, but if you think of this as just another chance for us to expand as artists and maintain you support in us, we will promise to compensate you with a more mature TVXQ.

So calm down, Cassies, the boys have got your back as long as you got theirs. SM Entertainment would be utterly stupid to let their biggest money maker leave them, or end this media battle by looking like the bad guy that operates on slave contracts.

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