SM Entertainment refuted TVXQ's claims and stated that since their debut up until this month (July 2009), TVXQ has earned more than 11 billion won (over $9,000,000). They stated that despite the huge losses and budget problems that SM Entertainment has had these past years, the boys were paid royally (around $1,800,000 each) and that they also received high end products as gifts (cars, music players, LCD TV's, etc.) SM Entertainment stated that the $9,000,000 earned doesn't include the money that TVXQ received from Endorsements / CF's, Events, Photo Ops, Signings, Japan sales, etc. SM Entertainment also stated that there is no law stating that a contract for an artist cannot be sign for more than 7 years. They concluded saying that they will try to resolve these issues immediately.
It looks like SM Entertainment is trying to make themselves look like the victims here, which you would expect. But all this negative news isn't good for the company, as stocks fell around 10%. Here is the news according to Forbes:
"**S.M. ENTERTAINMENT SLIDES ON NEWS OF LEGAL FEUD**
S.M. Entertainment Co fell after several media reported on Saturday that members of Tong Bang Shin Gi (TVXQ), a South Korean boy band, filed an injunction in a Seoul court to terminate their contract with the talent agency.
'For investors, it's reasonable to worry over the news, since Tong Bang Shin Gi is one of the major sources of revenue for SM Entertainment,' said Kim Chang-kwon, an analyst at Daewoo Securities.
S.M. Entertainment could not be reached for a comment.
S.M. Entertainment shares fell 10.06 percent to 3,755 won as of 0141 GMT"
I think this whole issue will be resolved soon, at the end of the day I think it will... or at least I hope it will.
can't help but notice FORBES got TVXQ's name wrong!!!
it's either Tong Vfang Xien Qi or Dong Bang Shin Ki or even Dong Bang Shin Gi...
what is Tong Bang Shin Gi???