SM ENTERTAINMENT has a lot of explaining to do.

SM ENTERTAINMENT has a lot of explaining to do. You know what, from a point of a random bystander – without TVXQ’s issue with their management agency, things wouldn’t be out in the open. Whoever is at fault, should be given proper treatment and sanctions. However, now that the issues are out, more and more are also claiming the voice.


Here’s what SM Entertainment needs to explain about:

  • Intricate International Contracts means a very specific and complicated splitting of shares.  For some reason, SM Japan has released the exact earnings of the members since their Japanese debut, and that left the rest scratching their heads for the percentages and profits.
  • Also, fans are demanding an explanation for the supposed to be SM Summer Concert with TVXQ and the rest of their talents. They too, are filing for a court case just so they could get the proper treatment from the sudden cancellation.

In regards to the long term contract and undisclosed earning percentage split problem, it had created an unfair contract. Tohoshinki’s 3 members finally decided to go through court to resolve this dispute with their agency SM Entertainment.

Recently, the 3 members of Tohoshinki had requested to have their earning percentage split in Japan’s documents without taking in much consideration.

It is said that Tohoshinki had debuted in Japan in 2005 and till now, 4 years had passed and each member’s earning in these 4 years could only reach about 1.5 billion. This is the first time that Tohoshinki’s earnings from their daily activities in Japan have been revealed.

Representatives had too expressed that SM JAPAN is a company that SM KOREA has 90% control over, and because of the matter over in SM Korea, it is said that it makes one suspicious of how SM Korea manages to pay for SM Japan too.

The members are rather confused over the whole percentage split earning because they have yet to see the whole real contract, according to SM in May revealed their financial status, SM Japan belongs around 93.5% to them. In regard to this matter, the public have raised questions.

Korean art schools professor, Lee Dong Ting said “Because of Tohoshinki’s activities in Japan, it had created a problem in percentage splitting. According to Tohoshinki’s agency, SM Japan and Avex would like to take in 50-50 of the earnings then between SM & SM Japan, another 50-50 in earning’s and in truth, Tohoshinki actually received only 1/4 of the earnings during these activities.

With an agenda of “Through Tohoshinki you could see that the companies system is full of problems and solutions were made,” Professor Lee also pointed out “SM JAPAN and SM been seen as 1 company is okay, therefore this kind of split for earning’s can bee seen as a dirty hand trick.” Professor Lee then said “The total amount that Tohoshinki is getting, being an artist and enjoying their reputation along with SM’s way of making use of the money in the name of ‘because it’s business’ (IE. Saying they need to pay their stylists etc) is not tallying with the reality calculation.”

Source: hohobbs
Translations: mel @ OneTVXQ
Shared By: Daily Kpop News


The fans of DSBK are threatening to sue SM Entertainment if they do not get some of their money back. They had originally brought tickets to the now postponed SM Town Live 2009. 1,222 fans gathered on September 3rd, demanding an apology and at least 10% of the ticket price refunded to them.

SM Entertainment had originally stated that DBSK would attend the concert despite their pending lawsuit with them and the whole show would go on as planned. But at the very last minute, they postponed the show, without a valid reason, leaving many fans hurt, distraught, broke and feeling betrayed by DBSK’s parent company.

According to the fans, since SM Entertainment didn’t give a good enough valid reason for the postponement, and thus they have got some explaining to do.

Credits to Allkpop

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