The March 15th Hearing was meant to be the final hearing, but on this hearing SM requested an executive at SM Japan as yet another witness. Therefore there will be yet another Hearing on April 19th, 2pm KST. One wishes that SM would please request these witnesses ahead of time.
The below is a cohesive account of the March 15th Hearing.
The Reason Why JYJ Had No Choice but to Sue
Posted by Seo Yoonah-pierrot, @followyas and @babyblue
Original source: Naver Mongeul Mongeul blog
The March 15 SM v. JYJ Hearing
1. The alleged reason why the [Dong Bang Shin Ki’s] members’ earnings were so little was that everything was attributed as overhead expenses. It was revealed today that what SM counted as overhead expenses included such comically ridiculous items as snacks, daily expenses of SM executives and staff, parking fees, cold medicine, meals, entertainers’ transportation (ie, plane, car), rent, concert agents’ costs, various taxes and expenses that should have obviously been covered and borne by SM.
2. SM claimed that in 2008, of the 14.7 billion won (roughly 14.7 million USD) in royalties earned that year only 1 billion won (roughly 1 million USD) came from Dong Bang Shin Ki, and the rest came from CSJH, BoA, the Trax and Koh Ara [T/N: A Korean actress under SM]. Those who know of Dong Bang Shin Ki’s popularity and selling power in Japan and abroad know how baseless this claim is. (The judge asked if Koh Ara really brought in more revenue than Dong Bang Shin Ki, at which SM’s side could not respond). At this point, many in the courtroom even burst out laughing.
3. In 2008, SM transferred the required 10% of digital download sales [to Dong Bang Shin Ki] but in 2009 didn’t even bother to do so.
4. The total earnings from the world tour amounted to 3.4 billion won (roughly 3.4 million USD), but of the amount that was supposed to go to the Dong Bang Shin Ki members, [SM] subtracted 900 million won (roughly 900,000 USD) as agents’ fees.
5. The money that was handed out as advances was later deducted as personal taxes. If only [SM] had done their accounting properly there would have been no need to pay such taxes on these advances.
6. The [Dong Bang Shin Ki] members were made to pay for the agents’ fees for their concerts abroad, music videos and even choreography expenses.
7. Even given the sales of Mirotic accounted at 480,000 units, [SM] was supposed to pay [the members] 50 million won (roughly 50,000 USD) but didn’t for the reason that the next album hadn’t come out yet.
8. In 2004, [the Dong Bang Shin Ki members] were accounted the 3-4 months’ worth of profits for the single “Hug”, but the accounting records reveal that after that they received nothing on the sale of their albums.
Ultimately, the [Dong Bang Shin Ki] members were burdened with all the costs.
So what exactly is SM insisting it invested? [T/N: the author is implying that SM’s justification that the financial arrangements in DBSK’s contract were necessary to recover investment costs is in fact one big, elaborate lie/fraud. All the major investments were made by the DBSK members; the DBSK members were in fact forced to invest in the company that supposedly invested in them]
What kind of calculation method is this?
The more they are active, the more they lose money…how is there anyone that thinks this makes any sense?
If this is how much SM screws around in court, one wonders how much more severe is their screwing around in real life.
All the information revealed at the hearing is the result of SM having tailored and bent the facts in their favour, and yet it still renders one appalled. One wonders how much more shocking the uncensored version is.
And now, the judgment that was originally due out today has been extended once more to a fourth hearing thanks to SM’s latest claims/antics.
But everyone, be aware of the truth.