According to Korean media reports on the afternoon of August 4th, Beijing time, the conflict between TVXQ members and SM Entertainment has been escalating. SM Entertainment issued a statement on the evening of August 3rd, revealing that TVXQ’s earnings in the past five years have been 11 billion won later, a friend of the three TVXQ members refuted SM's claims on behalf of the three TVXQ members in an interview with the media.
Regarding SM’s claim that TVXQ earned 11 billion won in the past five years, this friend who has known TVXQ since before their debut said that even according to SM’s claim, TVXQ earned 11 billion won in the past five years. 11 billion won. After deducting taxes, each person’s annual income is only 200 million won. However, TVXQ’s albums released in Japan in the first half of this year alone brought SM Company up to 33 billion won in revenue. If TVXQ is included Taking into account the total of 48 albums and singles released since their debut, SM has no idea how much money it has made through TVXQ’s records. It is obviously unreasonable to only give TVXQ 11 billion won.
The insider also pointed out that SM has deducted the income that TVXQ deserves by allocating all expenditures to TVXQ, establishing branches and dividing one income into several parts. For example, he said that the income from TVXQ's activities in Japan is not directly attributed to SM Company, but is divided between SM Japan Company and SM Korea Company according to a certain proportion, and then SM Korea Company takes its own share according to the contract. The proportion will be given to TVXQ, so what TVXQ will get is naturally much less than what they could get originally. As for the luxury imported car that SM proposed to give to TVXQ, this person familiar with the matter said that although SM was nominally giving the car to TVXQ, it was actually property in the name of SM and could not be said to be owned by TVXQ.
It is reported that Park Yoochun and the other three people are very disappointed with the recent insincere speech of SM Company. They have lost the confidence to continue negotiations with SM Company and will wait for the court to make a decision. According to an insider, even if Park Yoochun and three others terminate their agreement with SM, TVXQ will not be disbanded. Whether Park Yoochun and others terminate their agreement with SM first and then Jung Yunho and others terminate their agreement with SM, or It is possible that Park Yoochun and three others and Jung Yunho and two others belong to different agencies and continue to act under the name TVXQ.
Whether SM has trademark rights to the group name TVXQ has become a key issue whether TVXQ can continue to be a pure company. An insider revealed that because TVXQ has the word "Tongfang" in the name of the group, A word that refers to a specific direction cannot be registered as a trademark according to relevant Korean laws. In fact, SM Company filed a trademark application for this name in 2004 but failed to pass the review. Therefore, even if Park Yoochun and the other three finally terminate their contract with SM Company, there is basically no obstacle to continuing to carry out activities under the name TVXQ
TVXQ terminates the contract but does not disband? Insiders revealed that the name of the group is still available
TVXQ and the agency SM, which are in crisis of disbandment, respectively announced different stances yesterday, and the two sides started an offensive and defensive battle over the truth of the incident. The day before yesterday, TVXQ member Park Yoochun and others complained that their employer was too harsh on them and forced them to sign a 15-year contract. Yesterday, SM came out to refute, claiming that from TVXQ's debut in 2004 to this month, the five members had received 11 billion won (approximately RMB 560 million). In the increasingly chaotic war of words, the incident has taken a new turn. According to an informed source, SM Company has no trademark rights to the group name TVXQ, and the group name can continue to be used even if the contract is terminated.
Refutation
SM: They earned 11 billion won in 5 years
After Park Yoochun and three other TVXQ members issued a statement the day before yesterday accusing SM of acting arbitrarily, SM yesterday The company issued a statement rebutting the claim. First, regarding the terms of the contract, which means that if the album sales are less than 500,000 copies, they will not get a penny of profit. SM retorted: "TVXQ made its debut in 2004 and as of this month, the five members have received 11 billion won. They also received premium allowances in the form of bonuses. As for what the three members said about "only three or four hours of sleep a day," SM said: "We have reached an agreement on health and schedules."
"In response to the issue of the 15-year contract, SM stated that according to the regulations of the Korean Fair Trade Commission, the agreement between the singer and the agency can be valid for more than 7 years.
Breaking the news
Even if the contract is terminated, the group name will still be available
Just after SM issued the statement, a friend of the three TVXQ members stood up and argued that TVXQ's annual income after excluding taxes is only 10%. 200 million won, and TVXQ’s albums released in Japan alone in the first half of this year brought 33 billion won to SM. This person finally emphasized that even if the contract is terminated, TVXQ will not disband soon. Someone gave an explanation - a person in the Korean entertainment industry claimed yesterday that the word "Oriental" in the name of TVXQ, which refers to a specific direction, cannot be registered as a trademark according to relevant Korean laws. In fact, SM Company applied for the group name in 2004. The trademark was registered, but it failed to pass the review. Therefore, even if TVXQ terminates the contract, the group name can still be used.
In addition, nearly 20,000 Chinese, Japanese and Korean fans signed a petition to oppose TVXQ’s disbandment. /p>
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It is difficult for TVXQ to terminate the contract and make a solo career, or it may settle with the company out of court
Korean media believes that out-of-court mediation is highly likely
TVXQ, known as South Korea's top group, the five members, Hero Jaejoong, Miqi Yuchun and Xia Junxiu, filed an application for temporary processing on the 31st of last month, requesting to work with their agency SM Entertainment (hereinafter referred to as "SM") ) to terminate the contract. However, the Korean media believes that they should negotiate a solution because the development of idol groups after "solo" is often not ideal.
The members who requested to terminate the contract stated that TVXQ has been in the industry since their debut in 2004. , the sleep time on weekdays is only 3 to 4 hours; in terms of record income distribution, TVXQ can only get 10 million won when the next album is released when the previous album sells more than 500,000 copies, otherwise According to the contract between the two parties, TVXQ will work for SM for nearly 15 years (including two years of military service). This is actually equivalent to a lifetime agreement for the idol group, and the compensation for early termination is as high as several hundred dollars. 100 billion won.
In response, SM also issued a statement on the evening of August 3, stating that TVXQ had received 11 billion won (approximately 5,000 million won) in cash from the company from its debut to July 2009. RMB 10,000), their income from advertising and image rights is also high; the contract period is also in full compliance with relevant Korean laws and regulations. SM also stated that decisions on relevant work arrangements are made after discussions between the two parties. SM finally emphasized that they did not want to see it. To the disbandment of TVXQ.
Regarding this lawsuit, the Korean media speculated that the possibility of out-of-court mediation is relatively high. South Korea's "Chosun Ilbo" reported that TVXQ will continue to maintain this group through negotiations, which will be more conducive to future development.
Korean media analyzed that the reason why members have difficulty performing well after the idol group disintegrated is due to the characteristics of Korean pop culture. Korean fans are more loyal to the group than to the individual singer. In particular, a group, unlike a solo group, has the advantage that members can learn from each other's strengths and weaknesses. At the same time, most of the members of idol groups debuted at a young age, and they rely more on the planning and packaging of the agency than their personal strength. Moreover, most of the brokerage companies that own successful idol groups are large planning companies with high influence in TV stations and the entire media circle. Therefore, once the group disintegrates, it will be difficult to get support from these areas.
◎ Background Analysis
SM Entertainment’s star creation: heavy investment and hard exploitation
SM Entertainment is an entertainment company founded by Lee Soo Man, a singer, in 1995. It started from scratch. So far, they have almost monopolized the Korean idol market. In 1998, SM introduced its H.O.T and S.E.S products to China and Japan, setting off the "Korean Wave" boom in Asia. In April 2000, SM went public and issued shares, becoming South Korea's first entertainment and culture company.
Although its groups have repeatedly become popular in Asia, there are also endless cases of disbandment or collective job-hopping. Rumors about SM's harshness are not groundless. According to Korean industry insiders, Korean artists, especially singers, often have to go through a long period of practice before becoming famous. The growth stage is usually four to five years. Companies often select a group of teenage children and then train them. The training content includes 8 hours of vocal and dance training every day, and even plastic surgery, etc. The combination will be released to the outside world after being beautifully packaged. In terms of industry profits, an artist who debuts at a young age can earn more money for the company by performing for a few more years. Moreover, the younger the artist is, the lower the cost of packaging is, and the greater the plasticity, which is conducive to company training. However, because singers are still in the period of puberty and development, excessive training and psychological load have a great impact on their physical and mental health. This is an irreparable advance on youth. Many groups launched by SM have a large number of people, a high degree of packaging, and high costs. After their debut, they have to work a lot to earn back the costs for the company. An insider revealed: "TVXQ and Super Junior were trainees at the same time, and TVXQ debuted early. Of those 30 trainees, only 18 became famous. The company has to earn back the cost of 30 trainees from these 18 people. So although they are very glorious on stage, they actually can't make any money. After all this trouble, TVXQ hasn't made much money since their debut."
They have been signing contracts with artists in Korea. It is clearly stipulated that if an artist violates the contract, he must pay liquidated damages and compensation, but SM's liquidated damages and compensation amounts are extremely large, even 3-5 times higher than the usual regulations. Because SM has invested a lot of manpower, material and financial resources to create stars, of course the cost is also quite high. It is reported that when promoting a future superstar, the company will spend at least US$50,000, and as much as US$350,000 in publicity fees. There is no free lunch in the world, so most of the money earned by Korean stars generally belongs to the company, and the artists have to be "exploited" by their companies. It is reported that when H.O.T sold a record during its most popular period, each person only received 20 Korean won (approximately RMB 0.16 yuan). After deducting royalties and official taxes, only 7 Korean won (5 cents RMB) was left.
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The TVXQ incident continues: The agent asked the company to provide detailed income
China News Service, August 5th, the hero of the idol group TVXQ in China and Secret When three members, Ki Yoochun and Hya Junsu, applied to the court for a "temporary order to suspend the validity of their exclusive contracts" against their agency SM Entertainment, their attorney, lawyer Im Sanghyuk, said on the 4th: "What the members really want to know It is correct and detailed information about what they did, how much they earned, and how they distributed it." According to South Korea's "Central Daily News", lawyer Ren said in an interview with a media that day: "I think. There is no need to formally refute SM’s explanation of the statement made on the afternoon of the 3rd. We will discuss future rebuttals with the client in court.” He also said: “As for SM’s claim that in addition to paying 11 billion won. "In addition to cash, we also provide high-end imported cars, and all five members share it equally. If we simply calculate it, the amount each person gets per year is about 200 million won." He countered by saying, "The income of the most popular singer last year It’s only 200 million won. Who can understand this fact?”
Lawyer Im said on the 3rd: “Because the company brought a thick contract and only asked them to sign it. The contract was signed in a formal way, so the members don’t know the contents of the contract not only for Japan’s activities, but also for all domestic activities. In order to get the correct details, I have asked SM to provide information.”
On the other hand, lawyer Park Chanjong, a former member of the National Assembly, also expressed his opinion on the court dispute between TVXQ and the agency on the 4th: "The behavior of TVXQ's agency violated the crime of 'illegal interests' and 'crime of fraud.' It is established under criminal law, and the contract signed by TVXQ is indeed a slave contract.”
The TVXQ incident also attracted media attention in Japan. Nippon Television's popular information program "Miyaneya" spent 10 minutes on the 3rd discussing the incident.
Fuji TV's morning news "Special" also conducted a special news broadcast on the 4th with the title "Grasp the truth of TVXQ's disbandment crisis through emergency materials in Korea."
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"TVXQ" claimed that they were treated unequally. SM yesterday refuted it point by point
The day before yesterday, three members of TVXQ, Kim Junsu, Kim Jaejoong and Park Yoochun issued a statement, saying that the agency contract signed with the company was unfair and "wanted to break away from the constraints." Yesterday morning, SM was unwilling to remain silent and refuted point by point. At the same time, SM insisted that the cosmetics incident was the essential reason for the termination of the contract, believing that the three members participated in the event without the permission of the planning company and obtained improper benefits.
Complaint: Sales of less than 500,000 records, no profit at all
Refutation: 11 billion won paid over five years
According to Korean media reports, SM first retorted about the contract clause, which stated that if the album sales volume is less than 500,000 copies, they will not get a penny of profit, saying: "TVXQ's five members have received 11 billion won *** from their debut in 2004 to this month, and they They also received high-level allowances in the nature of bonuses.” They explained that the 11 billion won included a distribution of 9.2 billion won and a payment of 1.77 billion won.
The company stated: “With changes in the industrial environment, we have various distribution rates for various incomes such as singing royalties, advertising, appearance fees for promotional activities, and image rights, and only one of them is incorrect. "In fact, the company set a record of continuous profits in the four years after TVXQ debuted.
Complaint: Sleep three or four hours a day
Refutation: The schedule is fully agreed upon
Regarding what three members said: "Only three or four hours of sleep a day." Hours later, his health seriously deteriorated." The company said, "We fully negotiated our health and schedule." Three members said, "We have to work according to the schedule every day except for one week for one year. It seems that it has become a tool for the company to create profits, and we have such a sense of crisis.” On the 31st of last month, we filed a temporary application to the Seoul District Court to terminate the validity of the exclusive contract.
Complaint: A 13-year contract is equivalent to a lifetime agreement
Refutation: The terms of the agreement have been confirmed by the Fair Trade Commission
For a 13-year contract, "it is actually a lifetime contract" "The Fair Trade Commission's standard clause recommendations do not stipulate that the singer's contract period is seven years," SM added: "After concluding an exclusive contract with the applicant, the terms of the agreement were updated and revised five times, two of which were reviewed and confirmed by the Fair Trade Commission."
----- -------------------------------------------------- ------------------------------------------ The conclusion is: it will not be disbanded!