Developments Concerning the First Public Trial Between SM Entertainment and TVXQ’s Jaejoong, Yoochun, and Junsu [080510]

May 9, 2010

– First public trial between SM and TVXQ’s three members ends
– SM representative Kim Young Min expresses interest in offering a new contract to the three members
– Court judge who is in-charge of TVXQ lawsuit advised, “Once the contract is changed, the five members can be active again”

The public trial regarding the exclusive contract that has brought about the dispute between SM Entertainment and Micky Yoochun, Xiah Junsu and Youngwoong Jaejoong has finally taken place. The legal representatives of SM and the TVXQ trio appeared at the Seoul Central District Court on the 7th of May at 5PM to proceed with the case held last month regarding the sequestration of the existence of the exclusive contract.

However, May 7th’s hearing between both parties failed to narrow differences as each party stood their grounds.

SM’s side stated, “Compared to the other domestic entertainment agencies, there is nothing unreasonable about TVXQ’s distribution of income,” and that the exclusive contract’s conditions regarding distribution of income should not cause any more major problems for the TVXQ trio. On the other hand, the three members of TVXQ felt that “the distribution of time and income in the contract between TVXQ and SM has reached an extent where it is seriously unreasonable.”

As of now, both SM and the three members have no actual intention of having a settlement. Sejong also maintained that “Because of this matter, there has been a breach of trust between the three members [and SM]” and that “The three members will never be able to work with SM again.”

SM’s representative stated that, “As business partners, we hope to restore trust with one another; in comparison to other domestic artistes who are on the similar level as TVXQ, while the remuneration received by TVXQ may be lesser, it is definitely not unfavourable to them.”

SM’s representative then claimed that “If we offer a new contract, we can cut down 2 years from the original 13 years, and increase the income distribution rate from 10% to 15%.”

From the Court:

The court asserted that both parties are “emphasizing on the causes of loss rather than the possibility of a settlement.”

In reference to the injunction held by the Seoul Central District Court to stop the effectiveness of the exclusive contract, Judge Choi Sung Joon, who had presided over the first round of the trial, has advised several times that “[O]nce the contract is changed, the five members can be active again.” Although the TVXQ’s trio’s legal representative has expressed strongly that “there is no possibility of [the three members] working with SM Entertainment company in the future,” it seems that the court hopes for both parties to take a step back in their stand towards each other, from the numerous advice given by Judge Choi.

Judge Choi also said that SM has been actively trying to reach for a settlement. At the same time, he advised for “SM to come up with a new form of contract; to shorten the contract from 13 years to 10 years is of no significance. Hopefully they will consider coming up with a new form of contract.” SM’s legal representative responded positively by stating that “they will hold an internal discussion” in regards to that. The three members’ legal representative has also expressed a form of compromise by stating that “if the new exclusive contract is sincere, we will confirm the opinions of the three members.”

A public trial will be expected to continue at the end of this month.

Sources: NoCut News KoreaAsia Economic News KoreaNaver NewsHEY!JJ 1HEY!JJ 2,XiahSunJoongAng Ilbo China
Translation: kimuchi3005 @ OneTVXQ.com
Credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }
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