We might be if the ongoing battle between “SM Entertainment” and the three members- Xiah Junsu, Micky Yoochun and Youngwoong Jaejoong doesn’t get settled soon.
SM Entertainment proclaimed D-day and gave the three members (first three from the left) of popular idol group, Dong-bang-shin-ki (TVXQ) until November 12, 2009 to reach a settlement.

Although the deadline has passed, both parties have still not come to an agreement because they are dead firm on their demands. The trio have gotten their lawyers ready to continue with the lawsuit against their long-term contract with SM. However, in a phone interview on November 17th, the boys have stated that they would rather talk things out than choose legal action.

This was after the press conference held by SM on November 2nd. CEO Kim Young-min revealed that the lawsuit began to cover up a cosmetics business, “Crebeau” which the trio tried to start without permission from their management company.

So how did the lawsuit start?

Back in July, the three amigos started legal action against their employer stating that their contract was a “slave contract” for the following reasons: TVXQ signed a 10 year contract that was extended to 13 years, TVXQ members would not receive profits from album sales until over 500,000 copies are sold (this was amended after February 2009), and if any member decided to quit the group, they would have to pay twice of their future profit share.

SM fights back

But SM argued points the finger of blame on the three amigos’ cosmetics brand CreBeau. According to SM, the amigos went to court in order to break the exclusivity of their contract to SM. Why? Because they had signed a contract with CreBeau where they would receive five percent of the revenue and had planned to promote the brand as TVXQ without consent of their management company. In addition, Jaejoong, Yoochun and Junsu turned down the opportunity to endorse a major cosmetics brand because of conflict of interest.

In addition, SM also revealed that the boys that their contracts from being members of one of Korea’s biggest idol groups is worth over a whopping 10 billion won (as 5 members). If the trio decided to go off on their own, they would only get 1/4 of that amount.

So, it’s probably in the best interest that the boys work things out. Otherwise SM will have another ordeal with angry fans and netizens.

Stay tuned for updates!