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“The legal battle has only just begun.”
SM Entertainment has released an official statement regarding the Seoul District Courts decision that, “The verdict laid on the injunction filed by JYJ’s Kim Jaejoong, Kim Junsu and Park Yoochun is valid.”
On the 17th, SM revealed that, “SM and JYJ’s legal battle is still not over,” and “The decision laid down by the Courts on the 17th was made only with regards to the injunction; it does not mean that the exclusive contract between SM and JYJ is invalid.“
They continued to add, “We are currently involved in the trial on this issue and a witness examination date has been set for mid-March. We will use only the objective truth and facts to prove the validity of the exclusive contract.“
source: [edaily spn+Yuaerubi]
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T/N There are 2 news in this article
[News] 110218 Court rules in favor of JYJ in a dispute with SM Entertainment
JYJ, a pop trio consisting of members from one of Asia’s favorite groups, “Dong Bang Shin Ki,” has won its legal battle to work independently from its management company.
When three members of the quintet, namely Kim Jaejoong, Park Yoochun, and Kim Junsu (more commonly known as Hero, Micky and Xiah), formed JYJ, SM Entertainment claimed the action was a breach of contract.
JYJ members Kim Jun-su (left), Kim Jae-joong (center) and Park Yoo-chun hold commemorative plaques at the appointment ceremony as goodwill ambassadors for the robot competition FLL KOREA in Seoul on Thursday. (Park Hyun-koo/The Korea Herald)
However, Seoul Central District Court dismissed Thursday the injunction request filed by SM Entertainment, thereby allowing JYJ to negate its contract with the company. The court had already ordered on Oct. 27, 2009 that SM Entertainment should not interfere with JYJ and its management agency CJes Entertainment’s activities.
According to the court, the exclusive contract cannot be considered legal for the following reasons: 1) The contract violates the right to privacy, establishing a “dominant-subordinate exclusive” condition, forcing members to obey the agency. 2) JYJ has weaker negotiation capability, having no choice but to follow SM’s decision. 3) The long period of the “dominant-subordinate exclusive” contract cannot be justified as a reduction of investment risk or to penetrate abroad. 4) The articles such as excessive penalty also result in a stronger “dominant-subordinate” relationship.
Other provisions that pushed members into a disadvantageous position were also invalidated, the court official said.
The court also said SM Entertainment’s injunction was a violation of the earlier court ruling not to interfere with JYJ.
A representative of CJes Entertainment, Back Chang-ju, said, “I express my gratitude to JYJ and staff members for their help in fighting a battle with Goliath.
“I believe that this is the victory of justice, and I hope that there will be no more interference with our activity for ridiculous reasons like double contract.”
(Herald Online)
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[News] 110218 JYJ Win Legal Battle with Former Management
JYJ, formed by three former members of boy band TVXQ, are now officially on their own and no longer under the influence of their former management agency SM Entertainment.
The Seoul Central District Court on Thursday dismissed a lawsuit filed by SM Entertainment against JYJ over what the band said was an unfair contract between the two parties. JYJ asked the court in 2008 to suspend the contract, and the court agreed, but SM Entertainment brought an injunction.
The band said their 13-year contract with SM Entertainment was unjustifiably long and it prevented them from receiving a fair share of the profits they generated. Since then, they have separated from TVXQ and created JYJ, which is shorthand for their names — Jae-joong, Yu-chun, and Jun-su.
englishnews@chosun.com / Feb. 18, 2011 12:13 KST
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JYJ members (from left) Xiah Junsu, Hero Jaejoong and Micky Yuchun on the cover of their mini-album “The…”
SEOUL: Korean pop trio JYJ is one step closer to their goal of extricating themselves from a 13-year contract with former employer, entertainment giant SM Entertainment, after a court victory on Thursday, reported Korean media.
SM Entertainment had previously filed an objection against an earlier court decision, which deemed the contract between the company and JYJ unfair and ordered SM Entertainment to stop interfering in JYJ’s activities.
The company claimed that it was illegal for the courts to prevent SM Entertainment from pursuing its interests, as laid out in the exclusive contract between the company and JYJ members Hero Jaejoong, Micky Yuchun and Xiah Junsu (all former members of SM Entertainment’s boy band Tong Vfang Xien Qi).
However, Korean courts dismissed SM Entertainment’s objection and upheld its October 2009 ruling that the trio are free to go about their activities without having to pay any damages to SM Entertainment as the contract between them was unfair.
Korean courts pointed out that the 13-year contract duration and clauses which heavily penalized artistes who wanted out of the contract, “could not be justified by the investment risk undertaken by the company” for signing the artistes.
The courts also turned down SM Entertainment’s request to suspend JYJ’s contract with their current employer CJES Entertainment, explaining that the request was submitted at a time when the court order for SM Entertainment to leave JYJ alone was still in effect, which made the request invalid.
After the court victory, CJES Entertainment Baek Chang Ju expressed that he was overjoyed JYJ will “no longer be plagued by accusations of double contracts” and thanked JYJ fans for their support.
JYJ member Xiah Junsu also tweeted that he was very grateful to the fans for “not letting go” and giving JYJ the strength to keep going.
An SM Entertainment spokesperson told Korean media that the company is still working to prove that its contract with JYJ is valid and that “the legal battle between SM and JYJ is not yet over”.
-CNA/ha
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The Seoul District Courts has dismissed all formal objections against JYJ’s injunction as well as the exclusive contract suspension injunction filed by SM Entertainment against JYJ’s Kim Jaejoong, Kim Junsu and Park Yoochun.
On the 17th, the Courts made it known that they have dismissed all claims filed by SM Entertainment, which is the agency’s formal objection against JYJ’s injunction as well as its exclusive contract suspension injunction.
This means that the Courts have emphasized their decision that the contract signed between the members of JYJ and SM is invalid and that the members’ independent activities are guaranteed. They have also publicized that SM Entertainment cannot interfere with JYJ’s activities in the entertainment activities on the claim that their contract with the agency is still valid.
The Courts laid down the verdict that SM Entertainment’s formal objection is invalid on the premise that:
▲the exclusive contract in question can be categorized as a submissive contract as it does not give the celebrity the freedom of choice and instead forces him to follow the orders of the entertainment agency
▲the members of JYJ could do nothing but follow SM’s orders as they were placed in an inadequate position compared to SM in terms of bargaining power
▲the exclusive contract’s extreme long-term subordinate nature cannot be justified by pretexts including the decrease of investment risks and ensuring a stable entrance into foreign markets
▲other than the long-term nature of this exclusive contract, clauses including that which gives SM Entertainment direct superintendency over JYJ’s every move as well as that which calls for excessive compensation for a breach of contract strengthen the submissive nature of this contract and place the members of JYJ in an unilaterally disadvantageous position.
Regarding the injunction filed by SM to suspend the exclusive contract signed between the members of JYJ and C-JeS Entertainment, the Courts dismissed the injunction on the grounds that:
▲as long as the verdict made on October, 2009, which includes the decision that SM must not interfere with JYJ’s independent activities in the entertainment industry, is valid, SM’s request to suspend the validity of the business commission contract signed between the members of JYJ and C-JeS Entertainment is not allowed as it goes completely against the previously stated verdict
▲and stressed that SM cannot exert the direct superintendency, given to them by their exclusive contract, over JYJ’s activities in the entertainment industry as of now.
Source: [osen+DNBN]
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Yoochun, member of the group TVXQ who went on a hiatus after their lawsuit with SM Entertainment arose, made his first solo public appearance since the lawsuit.
On the afternoon of 15 July, at Hwaseong, Gyeonggi-do, Yoochun posed for photos in front of the posters for KBS2′s new drama [SungKyunKwan Scandal] for the media. This is the first time that Yoochun appeared in public alone since July last year, when they filed for an injunction of their exclusive contract with SM.
For that reason, there was a lot of interest on whether Yoochun would comment on TVXQ’s activities or about Yunho and Changmin who chose to stay with SM, in front of the media.
Previously, Yoochun spoke about his ambitions towards this drama, “After reading the synopsis (story outline), I found it really interesting. I wanted to meet Seon Joon (the character Yoochun is playing) quickly. I’m really honoured to be able to play a charismatic character in a serious drama for my first role. To be able to show everyone a good performance in such a good piece of work, I’m studying various things to show my best.”
Admin: We are just sharing this news from sookyeong/kbites. Any wrong information are not DBSKnights' mistake.

From left, Hero Jaejoong, Micky Yoochun and Xiah Junsu [SM Entertainment]Three members of 'TVXQ' have filed a lawsuit against SM Entertainment following their exclusive contract injunction.
According to the Seoul District Courts, Xiah Junsu (Kim Junsu), Micky Yoochun (Park Yoochun) and YoungWoong Jaejoong (Kim Jaejoong) filed an exclusive contract validity suspension lawsuit on the 25th.
Sejong, the law firm in charge of the trio's legal actions, stated, "The exclusive contract period is thirteen years from the date they debuted, however, if military service is taken into consideration, the length of the contract is in fact fifteen years," and "This violates Clause 103 of the civil code." Clause 103 of the civil code states that any legal acts that violate good customs or public order will become invalid. Sejong also stated, "If the contract is canceled, the members must pay an extravagant compensation fee that is three times the amount of total investments and twice the amount of what the group would have earned in the remaining period of the contract."
The trio submitted an exclusive contract suspension injunction last July which was partially granted in October. SM Entertainment also filed an objection to the partial acceptance verdict and a lawsuit to confirm the continued validity of the exclusive contract in April.
TVXQ’s Xiah Junsu, Youngwoong Jaejoong, Micky Yoochun, and SM Entertainment have disregarded the court judge’s strong advice for a settlement, and have once again maintained their stand that it is impossible to come to a compromise. No amount of persuasion from the Court of Arbitration will change the possibility of a split-up amongst TVXQ.
In reference to the Seoul Central District Court’s decision on the 7th of May to proceed with the sequestration of the existence of the exclusive contract, Judge Choi Sung Joon, who was presiding over the first public trial, strongly advised the legal representative of the TVXQ trio, saying that “[O]nce the contract is changed, the five members can be active again.” Judge Choi then went on to advise the legal representative of SM to “[hopefully] develop a new form of contract that will include a more significant cut-down on the number of years amongst other adjustments.”
Sejong, the legal representative of the TVXQ trio, who had previously stated that “the three members will never be able to work with SM again,” also took a step back, stating “if the new exclusive contract is sincere, we will confirm the opinions of the three members.” SM’s side then expressed that they will “hold an internal discussion [regarding the possibility of a new form of contract].”
Unfortunately, both sides have come to a conclusion that a settlement is not possible. A close friend of the TVXQ trio said that “while the three members want for all five members to carry out activities together, working with SM is definitely not possible.” SM’s side also expressed that “while adjustments to the terms of the contracts can be made, all five members must still be managed under SM.”
Meanwhile, the litigation regarding the request of damages put forward by both SM Entertainment and the TVXQ trio will be determined in the later proceedings.
T/N: This is NOT me. I found this on Yuaerubi (in a section only open to upgraded members) and thought that you all should read it. Recently, my rights as a translator were questioned for deciding not the translate something so here I am leveling out the playing field. You know as much about this as kCassies do now. Things have been bolded for your convenience. DO NOT SHOOT THE MESSENGER. kthnxbai
Today was the hearing between sm and the three members...
First of all, my personal thoughts have been put into this so please take that into consideration as you read it. I should have written stuff down while I was there T_T...
I don't remember everything... but I will write everything I remember here.
When I went, there were a couple of reporters and... President Kim Young Min as well as some woman, and that woman kept sighing... like someone who was innocent and being unfairly treated... throughout the whole trial, especially when the three members' lawyer was talking...
(I know now that, that woman is the President of SM Japan)
I'll talk about what is being talked about between our stars (Cassiopeia) first. You have to know this.
I see a lot of our stars saying that the three members should agree to the conditions laid out today, but remember that SM was not the ones to put forth those conditions!!!
If you look through the articles about the conditions...
The idea came from the judge near the end of the hearing,
The judge gave SM's representative a very extreme example and asked him if SM would be willing to change the three members' contract if the terms of contract were a year long and if the contract was entirely different from the current one.
SM's representative told the judge to ask that to Kim Young Min,
Kim Young Min stood up (to me, he looked kind of hesitant) and said, "We would be willing to come to a settlement."
It felt like he was saying that they would be willing to consider but not that they would agree on a settlement for sure.
To this, the judge asked the three members' side the same question, and the lawyer talked as if he had no inclination to come to a settlement.
It did seem as though he was watching what he said as the three members weren't there, but he said that the three members didn't really want to come to a settlement..
So the judge asked if a settlement was impossible and the three members' lawyer said something about personal trust and that the relationship between the three members and SM had become too tight.
And overall... this was a bit.. iffy.. but personally, I thought SM's lawyer spoke very well. I almost felt as though I was being persuaded?
What he said sounded so credible... but he was a bit arrogant? He sat crooked in his chair, and I felt that the way he spoke was a little arrogant too.
Compared to him, the three members' lawyer was... so lacking that I wanted to speak instead of him.
The judge was kind of throwing questions at them in a kind of attacking way and was able to pick out all the flaws in the arguments.
And he said that two out of the three members had credit lines (*please see below) and asked SM how they were going to explain that.
+)The judge said to SM's side, "You said that two of the three members have credit lines, right?" SM tried to say, "No, one..." but the three members' lawyer cut in and said, "It's two."
And Crebeau wasn't brought up that much.
SM's side stated that SM balances accounts biannually. The three members' side stated that this all happened partially due to the fact that the members' wages for the first half of 2009 weren't right, so SM had told them to come check for themselves.
The information for concerts and activities aren't sorted into TVXQ, Super Junior, SNSD, etc, but it comes all together in the groups of 200X, month X, day X so SM said all the information they had could store a container truck.
They said that was why they did not submit the documents to the Courts, and they told the three members to come check for themselves, but a representative of the three members came instead. So the judge asked SM why the three members had to come, and why the representative simply couldn't have been given the files to give to the three members. SM's representative stated that the members themselves would know best of what they performed in so they should personally come...
Anyway, they still haven't been able to properly check this as there wasn't an answer.
(Sorry... I don't remember a lot of this part...)
Also, the three members' lawyer said that he received a copy of the accounts but the specifics of what came from where were not written on them.
For example, it said that TVXQ earned 3.4 billion Won from their first Asia tour concerts that had a total of 14 performances but in their second Asia tour, that had a similar number of audience members and a couple of extra performances, they earned 1.5 billion Won less (I don't remember if he said that it was 1.5 billion Won less, or that it was only 1.5 billion total).
Therefore, he said that he couldn't trust SM,
and for the Japanese activities, TVXQ earned over 99 billion Won but no money ever gets to them, and that their Japanese earning are split between AVEX and SM Japan, and then to SM and then to the members.
He was questioning where all that money went... (sorry;; my memory is....) and the judge asked him what his point was, and also asked if his point was that he can't trust in AVEX, and if the members can't trust in AVEX, why they renewed their contract with the agency.
The lawyer said that it wasn't that the three members didn't trust AVEX, it was that they couldn't trust what came after AVEX... something like that.
In conclusion, the judge said that neither side seemed to want to back down from their stance and that it would be hard to reach a settlement.
+)But the three members' side did say they would talk to the three members about it again.
If I could say one more thing, I think SM has a lot of evidence prepared for this lawsuit. Every time the representative opened his mouth, he would say that he would submit it all later........
When people were leaving after the hearing... I went out when Kim Young Min was leaving.... and I almost swore.... he was smiling as he was walking out and he had such a... confident expression on his face.... I personally thought the judge was leaning towards SM's side.. (that's a personal thought)
Anyway, the lawyer was very convincing... I would get so angry, I wanted to get up and speak for the three members instead.. they would say ridiculous things..... as I said, I'll add more when I remember it.
+++)
(Sorry for the continuous adding of new things... I keep remembering things..)
Near the end, when they were talking about a settlement, the judge asked for the three members to say something about it themselves,
but the three members' lawyer said that it hadn't been long since the three members were no longer minors and they might not be able to speak well in such a situation.
The SM lawyer sneered and said, "They aren't kids anymore, are they?".... His voice was dripping with mockery.. (from a personal standpoint)
Honestly, the three have never been to such an environment so it is true that they might not be able to speak well,
I think that was why the lawyer said such things.... um....
++)
And what the three members' side was emphasizing was performing activities as five.
That the three members really wanted to perform as five..
+)
They were told to submit all documents by late-May... that will probably be when the verdict is made..?
And what I've written here contain no lies, they're all things I saw and heard.
I hope that our stars believe in them and wait for them till the end.
T/N: Line of Credit - A line of credit is any credit source extended to a business by a bank or financial institution. A line of credit may take several forms such as cash credit, overdraft, demand loan, export packing credit, term loan, discounting or purchase of commercial bills etc. It is like an account that can readily be tapped into if the need arises or not touched at all and saved for emergencies. Interest is only paid on the money actually taken out. The concept has been introduced recently after the East Asian Crisis. The government can borrow money from international monetary institutions without having to handle the problem of an increasing foreign exchange reserves.
Lines of credit are often extended by banks and financial institutions to credit worthy customers to overcome liquidity problems (source: Wikipedia)