First, the facts:
1. Jaejoong, Yoochun, and Junsu filed a lawsuit against SME (SM Entertainment) in order to suspend their contract.
2. Jaejoong, Yoochun, and Junsu did plan to manage a branch of a cosmetics company. This did NOT however relate nor tie into the lawsuit.
3. Yunho and Changmin are NOT filing a lawsuit against SME along with their fellow three members.
4. SM has been taking anywhere from 70-90% of TVXQ’s profits.
5. TVXQ is also signed with AVEX Entertainment (Japanese entertainment label) and still scheduled for A-Nation concerts throughout August.
6. There have been NO talks of disbandment.
Addressing the facts:
1. The lawsuit suspends the three members’ contracts while pending. Popular belief is that they want to renegotiate parts of their contracts, POSSIBLY because of SM’s disapproval of fact number two.
2. This is a fact, enough said. SM released a statement that “The cosmetics company issue will be resolved”, but that statement did not refer to the injunction filed by Jaejoong, Yoochun, and Junsu.
3. They are not, and this is why rumors of a breakup started flying because of this inconsistency within the members. It is just a coincidence that the two are not involved with the cosmetics company are also not filing a lawsuit against SME.
4. Yes but, to an extent, this is not as extreme as many people think. SME does take an unheard of amount from TVXQ, but they also pay for anything and everything the members need. This includes plane tickets, hotel suites, meals, car rentals, etc. This effectively makes it so that TVXQ members do not have to spend a penny while under contract, but it does bind them to SME and prevents them from doing anything that would require large amounts of money (such as splitting from the SM label) without approval from SM. This has not affected the lawsuit at all, as neither TVXQ nor SM has said anything regarding the issue of pay.
5. This fact proves that SM cannot just disband TVXQ without legal repercussions. If SM were to disband TVXQ, AVEX would also lose a lot of money on the situation and would obviously sue. TVXQ also performed without incident today (August 1st) for A-Nation.
6. Nowhere has there been a statement about disbandment or splitting. TVXQ members and SM have not said anything regarding the issue. Mentions of Disbandment are just assumptions by the media and fans at large because of the lawsuit.
Now, the rumors:
1. There has been fighting among TVXQ members which has caused talks of disbandment.
2. Junsu’s father was at the head of the preparations to sue SME when SM caught word of the pending lawsuit and proceeded to bully around Junsu.
3. TVXQ members responded on their Cyworld mini hompages with messages suggesting that disbandment was highly unlikely.
4. TVXQ is under the same situation as their predecessors, H.O.T. and Shinhwa (maybe even S.E.S.).
5. TVXQ is in this for the money.
6. Yunho and Changmin have resigned with SM under a new contract.
Regarding the rumors:
1. No, there has not been ANY fighting among TVXQ members and this was clearly addressed in a previous article.
2. This still just a rumor and nothing has been confirmed, but many Korean bloggers have caught a hold of this specific issue and have been discussing, so there is still some validity.
3. Yes, this has been proven to be false. Contrary to popular belief however, allkpop never confirmed this was true and even stated that the pictures were most likely fake. allkpop is trying to keep readers up to date with anything and everything that may arise about this situation. With hot issues like these, getting news up quickly is our first priority and when things are disproven, we will take measures to address the situation. We realize that this is a sensitive issue to many of our readers and we ask that you take everything that is not posted as cold hard facts, with a grain of salt.
4. Although the whole situation may remind some people of what happened with H.O.T and Shinhwa, the circumstances are very different. Many people have many different opinions on this, but the situations are not parallel.
5. The insane split of profits with SM may have something to do with the pending lawsuit, but more than likely not. The 10-30% that TVXQ receives in profits is still more than the average upperclass American citizen makes in 10 years. More than likely, money has no part to play in this lawsuit.
6. Rumors have been going around that the two of them decided to stay with SM but this is confirmed to be NOT TRUE according to the official TVXQ fansite.
Lastly, speculation (NOTE: these are all predictions and outcomes that have been expressed by both the non-Korean AND Korean parties. Please take these with a grain of salt) :
1. TVXQ will leave the SM label and continue their promotions under a different or possibly independent label.
2. TVXQ will break up and SM will lose lots of money, possibly leading to a shutdown of the company.
Response to speculations:
1. At the current moment, this is the most popular outcome that most people agree upon. They believe that TVXQ will win this lawsuit, leave SM and start an independent label or sign with another big label such as JYP or YG. In my opinion, this is highly unlikely. The lawsuit has nothing to do with terminating TVXQ’s contract with SM. Along with that, SM has a lot of influence over MBC, KBS, and SBS and can easily prevent TVXQ from performing on any of their music shows and cause many hardships for TVXQ. This is what happened with Shinhwa. On the other hand, TVXQ is arguably THE hottest band in K-pop and promotions aren’t necessarily needed in order to sell albums.
2. This is, in my opinion, highly unlikely unless SM plays a part in breaking them up. There is no proof that any of the members have any beef with one another. This is just an outcome that anti-fans have come up with to dishearten others. But please remember, the possibility is not ruled out and everything is up in the air until official statements from both parties are released.
Hopefully this article cleared up any and all confusions regarding this developing story. Please remember that anything not listed as a fact is based on rumors alone and that they may turn out to be true or may turn out to be complete false.
Thanks for this one. i am still worried but a lot better. i dnt believe they will break up becuz then both sides will lose a lot of money! SM cant lose DBSK becuz then they will face a lot of problems,