When the TVXQ / DBSK / Tohoshinki controversy first began, the three members and their lawyers clearly stated that the three members’ investments in the CreBeau cosmetics line did not have any relevance to the court case. The core of the controversy was the legal issues of the slave contract. In SM Entertainment's opening statement, they stated that the lawsuit was because of the cosmetics issue.

To clear up the confusion, Kang Suk Won, the President of the Korean branch of CreBeau (Wishop Plus) was interviewed. Kang has already sued SME’s CEO Kim Young Min for slander to the Seoul Central Court on October 4th, 2009.

Kang said, “Although this case is obviously to fight the unfair profit splits and the conflict between the members and SME, SME is trying to push the blame onto CreBeau.”

Kang went on to reveal that the three members have only invested approximately 70,000 dollars, 60,000 dollars, and 40,000 dollars respectively. This amount, he said, was not enough to earn the three members rights to ownership of the business, let alone a big part of the profit.

Kang said, “In May 2009, some SME representatives visited the original branch of CreBeau Cosmetics in China twice. They determined that the members were not going against contract terms in any way, and now SME is distorting the true reason behind the case and putting out ridiculous claims... SME said that the whole lawsuit was due to the members’ wanting to continue a business that went against contract terms. This has no credibility in that SME has already approved of the investments previously. The members wouldn’t risk all the things that they gained as TVXQ by creating a conflict with their company over insignificant investments. It was a private investment, and the three have no ownership over the business in any way. They’re merely investors, nothing less, nothing more. What does this have to do with the lawsuit, and why is SME attempting to connect the two together?”

Kang went on to say that SME’s actions have brought about significant harm to the business not only in Korea, but all over Asia, including China, Japan, Hong Kong, Taiwan, Vietnam, and even the United States. For the employees and CEOs all over the world, CreBeau is their sole income. SME should have considered the impact its blames would bring to the business and the people involved in it.

“If SME’s company and its profits are so important that they are willing to harm others for it, then SME should recognize that it is the same for others.” Kang went on to say that “If SME does not stop distorting the truth and doesn’t apologize for the harms it brought upon CreBeau, I will not hesitate to reveal the details of SME’s absurd act to the public and to the court.”

Source: Daum Media
Credits: allkpop


UPDATE: CreBeau calls SM Entertainment out on “groundless claims”

This post has been edited by Aspire: Nov 9 2009 9 16 AM

I'm glad to hear this...
Eventhough the issue has gone out of control, maybe even worse now but at least we hear the story from the President of CreaBeau...

They even disclosed how much JaeChunSu have invested...

He is right... SME should have considered the whole consequences when twist & turn the story..
People are talking about the contract issue btw them & TVQX but SME still living in their own planet, by touching the cosmetic investment issue...

Anyway, once again...
"MIDUHYO"
"ALWAYS KEEP THE FAITH"

The President of that cosmetics brand is right...SME is trying to put the blame on them when it clearly isn't what the three boys are trying to fight about. Heck, I even forgot SME blamed the make-up brand until reading this article, because I've been absorbed with their money issue at hand.

Even some company like CreBeau which is not so close to the boys are protecting the group & asking SM to stop those acts. I can just imagine how dirty & inhuman SM is when they uses those dirty tricks to fight the boys whom they nurture for many years.

Why can't they just admit that they are wrong in the contracts to the boys & obey the court's rule & decision? They just keep biting the boys. I really wish some party with heart will be truthful & disclose all SM dirty and absurd things to public & media.

QUOTE

SME does not stop distorting the truth and doesn’t apologize for the harms it brought upon CreBeau, I will not hesitate to reveal the details of SME’s absurd act to the public and to the court.

I hope they do reveal this. It's all too much. It's not fair that CreBeau is getting affected by this, and SM is just digging their own grave now.

Finally we hear the story from CreaBeau- and from the President himself.

Wow, JaeChunSu even invested in the company previously and SME approved it? Then why are they speaking up now? Why are they so adamant on insisting that JaeChunSu went against their contract terms? Heck, they were all private investments. It's like what that President said, why is SME trying to connect two completely unrelated things together?

Honestly, this article comes as more of a relief than anyone of the other articles that came out about the lawsuit. At least we're hearing another side of this really messed up story.

Ugh. Talk about making a mountain out of a molehill.

The weird thing is that you normally don't hear this stuff happening to other entertainment companies...and even if you do, they're incredibly rare. SME seems to be practically bursting with rumors of inhumane terms and whatnot.



Either way, I'll keep hoping that everything will turn out okay for our boys...even though this situation's getting rather ridiculous. I'd like to see how SM will get themselves out of this one. Looks like someone needs a kick in the head- or a smack upside the head.

Ohh Wow! He seems to be ready for anything now. At least we know CreBeau's side of the story and they support DBSK.

DBSK Fighting~!

I agree!!! Those working in CreaBau will also suffer from bad publicity .. SME is so heartless


Yea way to go CreaBau!! The fact that SME using dirty tricks need to be revealed!

OH MY GAWD!!!
THIS IS A TOTAL RELIEF!!
go crebau!!!!!
SM should be ashamed of their actions..such educated people can come up with a disgraceful act. tsk tsk tsk.

CreBeau calls SM Entertainment out on “groundless claims”

At the start of November, CreBeau, the company behind TVXQ members Jaejoong, Junsu and Yoochun's cosmetics line, spoke up against SM Entertainment. At that time, Kang Suk Won, the president of CreBeau's Korean branch WishopPlus Inc, threatened, "I will not hesitate to reveal the details of SME’s absurd act to the public and to the court."

It looks like Kang just might follow through with this loaded threat - a follow-up interview that was released earlier this week has got fans abuzz once again. The president claimed that SM Entertainment attempted to cover this whole controversy and paint it as some sort of “national fraud.” “SME should stop the media plays and provide concrete evidence behind the harsh yet vague accusations they have been making.”

Kang answered some very controversial questions and cleared up much confusion and misunderstanding about the status of the three DBSK members in the business.

#1 SME claimed that CreBeau approached the members without consulting the company in advance.
Why should the members’ private financial investments be regulated by their company? If that’s not intruding upon their basic rights, then what is? We never attempted to use their fame and status for advertisement or profit. Jaejoong, Junsu and Yoochun invested in the business as mere financial investors, as individuals, not as celebrities. Are the members not allowed to make private investments for their future?


#2 SME claimed that the members get a 5% royalty of the profit of CreBeau.
This is ridiculous and ungrounded. SME needs to provide solid evidence to back their claims. We, on the other hand, are ready to reveal any financial records and contracts to defend our position. We also plan to press additional charges of slander on SME for this, on top of the charges of slander regarding SME's claims that the lawsuit was about CreBeau not the alleged slave contracts.”



#3 Representative Kim Young Min of SME claimed that the DBSK members visited China on January 6 of 2009. He said that the members claimed to visit China as a vacation, but instead they participated in the CreBeau China Investment Orientation.
SME is bringing this up again, but during January, there was no investment at all from anyone. Therefore, the members didn’t have the status of investor at that time. Additionally, it was only by chance the members were seen there. That orientation was supposed to be private, but when DBSK appeared there, thousands of people suddenly gathered. The pictures they took with the CreBeau representatives at the orientation were spread around on the internet.

We have never used the members in advertisements. We even provided measures to prevent the pictures from spreading further on the web. In fact, DBSK’s manager was with them at the orientation. When the members decided to invest in the business, Kim Young Min approved. And now, his attitude has changed 180 degrees all of a sudden.

#4 Any further developments in WishopPlus Inc.’s lawsuit with SME?
Because SME spread malicious rumors and sent complaints to the main branch of CreBeau, CreBeau businesses all over the world have been damaged in terms of trust with the customers and reputation of the business. Up to this point, we hadn't revealed much detail about the lawsuit because it was pending, but SME gives us no choice. We plan to reveal documentary evidence of what SME sent to the main branch of CreBeau. After seeing SME’s outrageous press conference, we now have a solid reason to press additional charges against SME.”


Source: allkpop
http://www.ohmynews.com/nws_web/view/at_pg..._CD=A0001252220