SM Entertainment’s official stand on Dong Bang Shin Ki trio’s lawsuit to demand for compensation is that they will be responding to the lawsuit actively.
News surfaced on 28th June reporting that the trio had demanded for a total of 3 billion KRW in compensation from the agency. And SM’s response to that was, “We will be responding actively to the lawsuit for compensation through our legal representatives.”
News reports have also surfaced quoting that the lawsuit is of no problem for SM Entertainment since it has at least 50 billion KRW in cash reserves.
Go under the cut for more information.
Daewoo Securities Co. Ltd. stated on the 29th that although SM’s stocks (041510) (12,950 Won, -3.00%) are plummeting due to the TVXQ lawsuit issue, the dip is nothing to greatly worry about.
Kim Chang Won of Daewoo Securities Co. Ltd. Research Center stated, “The current situation is a good opportunity to buy,” and “SM has at least 50 billion Won in cash reserves, so they will be able to easily cover a 3 billion Won compensation lawsuit.”
“Their second quarter sales will exceed the ballpark figure,” and “In the third quarter, SHINee and BoA’s domestic activities, Girls Generation’s Japanese activities and Super Junior M’s Chinese activities will reap great rewards.”
- source: [edaily+Yuaerubi]
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Earlier news report that surfaced about the trio demanding for compensation:
Dong Bang Shin Ki trio Micky YooChun, Xiah JunSu and Hero JaeJoong has demand for SM Entertainment to pay up a total of 3 billion KRW which means 1 billion KRW for each member.
The 3 revealed through their lawsuit against SM Entertainment on 28th June at the Seoul Central Court District, “Even though SM Entertainment made it a point that we have to sign up to 13 years with though in order for our overseas promotions, we are unable to accommodate with it. Even if we are to void the contract, there should be compensation to the members. This amount is considered much of an injustice already.”
It was added, “We also see the profit that SM Entertainment received with Dong Bang Shin Ki’s activities after our exclusive contract was made invalid as injustice. Each member should be compensated 10 billion KRW. Until now, Dong Bang Shin Ki has earned about 60 billion KRW. If we divide out by 5 members and take out the costs, each of us should ultimately received 1 billion KRW.”
Currently, the trio is promotion as unique group and previously on the 5th they held ‘JUNSU JEJUNG YUCHUN THANKSGIVING LIVE IN DOME’ in Osaka.