Sunday, January 16, 2011

The Cosmetics Company's lawsuit against SM

Many readers are aware that Wishop Plus filed a couple of lawsuits (criminal and civil) against SM for defamation and interfering with its business. There are many articles about that lawsuit, and many of them just report that the lawsuit was dropped.

Here is the link to the Allkpop article, and other articles around the net are pretty much the same.

Compared to the article about the lawsuit in China, this article is pretty bare. There's not much detail about the lawsuit, no analyzing, just a couple of lines that states the case was dropped. Then the article emphasizes about the lawsuit between SM and CJS, and says SM is preparing legal actions against Wishop Plus. What happened to the "neutral" journalism?

What all of those articles fail to mention is the reason why the lawsuit was dropped.

Here's the Korean article explaining why the lawsuit against SM was dropped. (June 17, 2010)

If you search "SM 무혐의 위샵플러스" (SM not charged Wishop Plus) in any Korean search sites, you'll find many articles about it.

Here's the translation of the part from the article that explains the reason for dropping the case.

"According to the investigation by the Korean DA, it was found that the 3 members and their families own 62.5% share of the cosmetics company, and they were involved in the business, so the DA determined that the Cosmetics Business was one of the important cause for the contract dispute."

Well, there it is. The Korean DA's investigation found the 3 members and their family owns 62.5% of the company. For those who doesn't know what that means, the majority shareholder has total control of the company, so they're basically the owner of the company. In comparison, Lee Sooman, the founder of SM, owns about 29% of SM shares.

I mentioned in my previous post about the China Court ruling that they shot themselves in the foot with this lawsuit. Before this, the public didn't have a clear idea how much CJS were involved in the cosmetics business, but as a result of DA's investigation from this lawsuit, everyone found out exactly how much.

After this ruling, SM has counter sued Wishop Plus for defamation and interruption of business because SM's reputation took a hit from the cosmetics company's wrongful lawsuit, and that lawsuit is pending.

CJS and the cosmetics company really shot themselves in the foot. Now it is confirmed by the Korean DA that they are heavily involved in the business. This was a major reason that I personally realized that CJS side is lying because they have testified in the court that they are just minor investors in the company which was found to be lies. This is about the time when the public opinion regarding the contract dispute, which was initially one sided favoring CJS, started to turn against CJS.

Have you international fans ever seen this fact in any of the articles out there?


  1. With that information, i think it's pretty clear that the cosmetic business have a big impact in this lawsuit, but do you think the court will rule in favor of SM because of this? I means even we know obvious it's one of the reason but it can't be denied that the contract it self is a problem too ... Judging from past lawsuit (a model from SM win the lawsuit to terminate his contract), i think the court will still rule in JYJ's favors ...

  2. @ kendalove

    I think it's too early to know what the court ruling is going to be because we haven't seen all the evidences and heard all the testimonies. Like I stated in one of my post, I think the evidences from Avex is going to be very important in this case, so we'll see what happens.

  3. wait. i'm not understanding something. are you saying that this information was common knowledge in korea? everyone in korea knew that JYJ & family had 62.5% share of the cosmetic company? am i the only one gobsmacked? how can this information not sway people's opinion (against the 3)? i read a lot of arguments and jyj fans still continue to argue that it had nothing to do with the cosmetic company. how can they say that when it's so obvious that it must. i feel like i'm missing something.

  4. Oh another update. :)

    I ve searched the article u suggested "SM 무혐의 위샵플러스" and found tons articles. Why I never encounter this article before? :/
    Now I fully understand, why they shoot them self on their foot. With 62.5% of share, they automatically the CEO of the company. I guess this wont bring any good for CJS stand at the moment.

    And for the next hearing... Is it SM as a suer or vice versa ?? Or is it the same anyway?? I lost tracked since so many cases happen... :P

    Now, I'm really curious for the next trial. Avex will be the witness. And it seems that (accrding hearing fanaccount frm jyj3 webste), SM executive and defendant from CJS stand will also attend the next hearing...

    If they all come... it ll be a 'war of the giants'.

    Thanks precious for ur precious writing.

  5. From the beginning I already know CJES lied, only jyj fans will believe them. It's not surprise to me that they own big share in the cosmetic company. International fans are manipulated by those so called dbsk fansites, they never layout all these facts and that made me mad because they protect jyj and let others bash on homin for years.

  6. @ catherine

    Yes, it is pretty well known that CJS owns majority share of the cosmetics company. The reason you didn't know about it is because none of the English fan sites translated this article.

    On the other hand, this info still does not prove that CJS filed the lawsuit because of the cosmetics company, but this at least proves that they were heavily involved with the business, and their claim that they were just a small investor was a lie. You need to know the details of what happened between SM and CJS to really understand why the cosmetics company caused this rift, and those details are... COMING!!! :)

  7. @ ayeopan

    The answer to your question about the lawsuits is in one of my post. :)

    Yes, they totally shot themselves in the foot. Without Wishop Plus' lawsuit against SM, no one would've known exactly how much CJS were involved in the business. That's why I said in one of my post that the Temporary Contract Injunction would come back to hurt them. There was too much time between that and the main lawsuit, and some evidences against them were slowly being revealed. When I'm done presenting all my case, the whole thing will be clarified. Probably will take a couple of months or more.

  8. *swears* That's why I don't freaking rely on any k-pop site anymore (you know the ones I'm talking about right?) they are so freaking biased that they dont give the information right and they dare to omit some important points!!! *whispers* sh*t heads!

    Does (blank) bitches know this and they still dare to boycott and trash Homin? Can't believe it...

    *sighs* I still have some mix feelings a/b this but...time will tell the real truth *puts iPod on and listens to keep your head down* :-)

  9. @ catherine

    One more thing about this 62.5% info. That fact was only revealed in June 2010, so it's almost a year after the trouble started to brew. You'll laugh when you start hearing excuses JYJ fans are giving for this indisputable fact. Some claim SM bought off DA (what?), some say the percentage of the share does not matter (since when?), and some say it doesn't matter because they are not involved in the business any more (not verified, and doesn't matter since they were in it when the trouble began). You name it, and they come up with every excuse possible to cover up for their boys. BTW, I think they're still involved with the business since Junsu's brother Junho is still participating in promoting the business.

  10. @ Jennystar19

    I know all about them. That's why I started this blog. :)

    You'll have much clear idea of what happened as I write more posts. Believe it or not, what I've presented so far is only the tip of the iceberg. :)

  11. Hi Precious,

    It loosk like the company name is We#Plus and not Wishop Plus...
    I know it's kind of small thing but...

  12. @ mari

    Is it? Where did you get that info? Korean sites and other English sites all call that company Wishop Plus. Can you post a link? Thanks.

  13. Dear Precious,
    Thank you for all the infos. I always knew JCS were not the angels the media paint them to be, but your blog gives us many infos that have been covered by the biased media up until now!

    Maybe you should share these documents on Soompi and other big forums, the world needs to know the truth... If you afraid of being bashed, I would like to post those for you, if you permit :)

  14. @ kawaiinu

    I'm fine with spreading the info. Just specify the source. I see people are already visiting my blog from soompi. I guess some people already posted links to by blog.


  15. This is only the tips of the iceberg??? D:
    Mother father!! Wow... more drama comin' then.
    I really cant wait for ur post as if I ve been waiting for thriller detective novels.. XDD (I praise u here..:p)

  16. Hi, more updated :) been coming here everyday for your update. You are right, the whole drama is very complex and... let's just said the whole thing start killing my brain cell T.T. Because people suing here and there... back and ford that have have no idea WHAT THE HELL GOING ON ANYMORE!!! One minute I read it about income and the next it slave contract, and then want to leave the company, or whatever... I feel like this @.@ trying to keep up with all of these drama.

    It wouldn't be much headache if it wasn't for those bias and misleading articles (that I and everyone read). And I'm AMAZE how ignorance (crazy) fan can be to be willing to bend the truth into false. Serious, I love JYJ, they are awesome singer and funny and all, but it doesn't mean they can't make mistake (big mistake in this situation), but I wouldn't go blind to all this facts present in front of me. Thank you for clarify these info because I didn't know the reason the case was drop beside like you point out that it dropped.

    You know I remember that a lots people complained that Allkpop is siding with or bribed by SM (I don't know where is this idea came from) when they are the one that have most misleading article (info) :) because what I read here are totally different from there. I hate SME before because of those articles I read there. [sign]

  17. @ Hotaru

    I feel your pain. I know many innocent fans (not those fanatical JYJ fans) are misled by those articles that only present part of the facts. Like I stated before, many Korean and Japanese fans have much better idea of what's going on.

    Allkpop must've posted articles JYJ fans didn't like for some fans to react that way, but as you pointed out, their articles were far more damaging to SM. I think AKP was the first site to write about the controversial Taiwanese TV show regarding SNSD, so there's no way they're bribed by SM.

  18. @ ayoepan

    LOL. Yes, many more materials for a whole movie is coming up. LOLOL

  19. No, I've never read of that fact, not even once and it's so baffling just thinking about how much we don't know because of the barriers separating us international fans from the local ones. :(

    Personally, I used to feel really sad and confused reading anything DBSK after the lawsuit because I just had no idea how to feel about any of it. How could anybody know how to react, without any solid facts to base their opinions and feelings on?

    Now as I read each of your posts I feel this sense of calm and even happiness replacing the sadness and confusion, even if not everything we find out is totally positive, because I understand everything a bit more and the sooner we can understand all of this, the sooner we can get over it and move on from the negativity it's bringing. I finally know where I stand. We can finally get some clarity after all this time. The truth really does set us free ^^

    You taking time to do all this, even if you're not a "die-hard fan", even with the empty criticisms from close-minded fans, is really doing so much for the fandom and Yunho and Changmin too. You're very brave and thoughtful, and what you're doing is making a big change. Just wanted to remind you that more and more people are here, extremely thankful for you, Precious, and your efforts, and we're rooting for you to keep on going! :)

  20. Hi Precious,
    Thanks for the reply. I was just in one of the JYJbiased sites and JYJ fans are now quoting the bible to put CM down. OH MOTHER FATHER! I...I..I'm just speechless. It's a little too much for my head/heart but I appreciate all your hard work. I don't really know if I want to find out more but I'm a sucker for punishment so I'll be back, I'm sure. Keep up the good work.

  21. Hi Precious!
    I just want to thank you for taking the time out of your life to do this! My instincts always told me to keep questioning why Yunho and Changmin never left, and for that reason, I was always siding with HoMin. I knew CJS were making a mistake, but I couldn't understand the full depths of it until now. I didn't even fully understand the whole conflict with the cosmetic company, until now, and I have to say, I'm not even mad at CJS anymore, it's more like disappointment, if anything.
    I go on Allkpop, and it's amazing how the international fans shoot down HoMin and make JYJ look like victims. And the worst part is, they all believe it.
    So anyway, thank you for opening my mind up on this whole situation, and I hope more people can see your blog.
    Also, I have to say it's very brave of you to put this up, knowing people will be upset about it and even bash you for it. But you keep it cool and calm, and I have much respect for that.

    Sorry just babbling here! Thanks for everything, I'll continue to check out your blog every day!!

    62.5%!!!! I still can't wrap my mind around that. Ugh!

  22. @ yunhophoria

    It will get a lot clearer as I post more info. Thanks for the kind words, I appreciate it.

    @ catherine
    Bible? That's something new. Doesn't surprise me though.


    Thank you. Once you find out more, you'll be really surprised how twisted this whole situation is.

  23. Bible??? well ... Changmin is not christian though ... those ppl should get educated before doing something like that ... lol

  24. quotes taken from a certain site.

    "jyj are like those rebel teenagers who think they are old enough to abandon their parents. homin are like those obedient children who stays with their parents eventhough their parents are cruel and love to beat them to death."
    -first commenter--(obvs talking about SM as parents who beat their "children")

    "When I was a child, I talked like a child, I thought like a child, I reasoned like a child. When I became a man, I put childish ways behind me." --second commenter--
    (obvs from 1 Corinthians 13:11)

    "Amen." --third commenter--

    this and another site are saying how YH & CM don't have enough confidence to leave SM and how they feel so bad for them for being such prisoners of SM. ppl believe SM is brainwashing the two and that the recent interviews are not their honest thoughts but forced by SM.

  25. oh boy, another drama coming up and more SME haters going rampage >.< about the lawsuit got postpone until March 15. Something about one of the witness didn't show up, but since I don't really know what going on I'll be waiting and see... oh boys, next few days/weeks will be a headache with raging fan. Hopefully they not using this as an excuse to attack HoMin again... [sign]

  26. now that I remember, do you know anything regarding the "contract" they have with CJeS Entertainment or going to talk about it in the future? I remember SME file a lawsuit against JYJ about dual exclusive contract. The whole thing it confuse me since they said they didn't sign a "contract" with CJeS Entertainment but hiring them instead... don't know how Korea music industry work so...

  27. @ Hotaru

    CJS delayed the main lawsuit for 11 months and some fans are bashing SME for a witness not showing up? Talk about a double standard. The lawsuit didn't get postponed. There was a trial session, but a witness couldn't testify for whatever reason, so she'll testify during the next session in March.

    As for the injunction SM filed against CJS for dual contract, that's still pending. I'll talk about it in the future.

  28. Actually, they not only bashing SME for witness not showing but also for dragging the lawsuit for this long.

    They think it a conspiracy that SME not allow witness to show up (because the witness SME employee) and by moving the trial date to March make CJS unable to promote there songs (not allow them to work)...

    so yeah, that is the basic/general what the commenter said in Allkpop article...

  29. Wow, I really don't know about it.
    Oh gosh I looked the whole thing in a one-sided perspective. It is really hard to obtain a reliable information from second hand. Almost all the infos from the net are all biased and filters the facts that everyone should Know. I have no idea that these 3 are like this. It's hard but I have to accept it. But Thanks again Precious for giving this information. I'm a business student though but It's hard to obtain info's about this so I became subjective in judging them. Thank you very much

  30. @ Sunshine Dreamer

    Yeah, it's really hard to make a correct decision when you don't know everything. Glad my blog helped, but there are more believe it or not. :)

  31. @ Precious

    more? how many more? much more? wah, I can't wait for them to uncover... can't wait, so excited XD

  32. Funny how jyj always said that the investment was really small that it didn’t even made a difference.
    That they were like the smallest investors and stuff like that 62.5% is not a small percent

  33. Precious,
    sorry for another question! but i just saw lastest news posted in jyj fansite, the above lawsuite between SM and Crebeau is already judged? it's stated on 27 Dec 2010 but it's just widely published today.(i checked the link to dc gall)hmmmm...

  34. Prec,

    no need to reply! i just found you replied to s.o. ^^

  35. now the court are dismiss the SM's injunction against Crebeau... I really looking forward the explaining from the blogger about this matter...


    Just leaving this here in case anyone was curious about how the lawsuit actually ended.