But it still doesn't explain why SM did not want them to continue the business, and why the conflict started in the first place. Why would SM interfere with CJS's personal business?
Both sides agreed that SM initially approved CJS's involvement in the business as long as it was a simple investment, but as proven later by the Korean DA, CJS owned 62.5% share of the business, but the conflict began about a year before that fact was officially released, so there must have been other reasons for SM to oppose the business.
First I want to go over the interview with the president of Crebeau, Kang Seok Won that's posted on many blogs and fan sites. Here's the interview. If you've already read the interview, you can just skip it. I deleted the picture of Kang from the original doc.
The cosmetic company that is being shown by SM Entertainment as the crux of the TVXQ dispute. To find out what exactly the relationship is between TVXQ and the cosmetic company, we met with Kang Seok Won, President of Crebeau, for an interview. President Kang Seok Won carefully picked his words and said, “More than 10 years of hard work to build this company are being rattled because of TVXQ’s small investment.”
▲What is the relationship between Crebeau and teh three members of TVXQ?
=Crebeau was created over 12 years ago. It has been over ten years since we began using sheep placenta as a main ingredient in the cosmetics. This can be easily verified in our homepage or on our certificate of authentication. We have over 100 stores in Korea alone. We are also a company that has spread to China and Japan. TVXQ’s Xiah Junsu, Micky Yoochun and YoungWoong Jaejoong made only small investments in our company.
▲What kind of company is the Beijing Representation Corporation that sued the three members of TVXQ?
=The Beijing Representation Corporation is the company who is in charge of all the Crebeau stores in the Shanghai region in China. We currently have three chain stores open in Shanghai as of now. We met for the first time at the Company Presentation that was held in China in January of this year and signed a contract together. This company opened these three stores in July and officially began their business. As soon as they opened, complications arose. (President Kang showed Sports Seoul the contract between Crebeau and Beijing Representation Corporation) Beijing Representation Corporation were not adhering to the clauses in teh contract and were using TVXQ to advertise their products. They irrationally held advertising events, and when we intercepted their actions, they decided to file the lawsuit.
▲If the three members of TVXQ only hold small investments, why where they sued?
=The three members attended the Investment Presentation we held in Shanghai in January. After listening to the Investment Presentation, the three completed their investments in March/April. The Beijing Representation Corporation interpreted ‘The TVXQ Three members have invested’ as ‘The TVXQ Three members are now ambassador’s to Crebeau.’ Therefore, the company tried to use TVXQ to advertise products but as soon as we heard of this and intercepted their actions, they retaliated. (Holding the contract)In the contract, not even the ‘T’ of TVXQ is mentioned. The three members of TVXQ represent SM Entertainment, not Crebeau. The side that violated the contract is in fact Beijing Representation Corporation, not the three members.
▲Do you have proof that Beijing Representation Corporation violated the contract?
=On October 2nd, when the TVXQ Shanghai concert was coming up, they sold cosmetics tied with tickets for the concert. We have even collected evidence of this. They opened a store that did not follow our standards, and illegally sold cosmetics at discounted prices near the concert location. These are all violations of the contract. The main office located in Korea told Beijing Representation Corporation to ask for all of the cosmetics sold along with tickets to be returned so that the company’s image would not be tarnished. 70 million Won worth of damages were incurred but the main office compensated for all of these losses.
▲When you say a ‘small investment’ by the three members of TVXQ. How small is their investment?
=The three members invested less than 100 million Won each in the Chinese branch of our company. Crebeau itself invested more than 3 billion Won for the Chinese expansion. The three members’ investments combined are only worth around 300 million Won. It is only around 1/10 of all of the investments. Xiah Junsu’s father also showed interest in investing. We gave him the right a chain store outside of Seoul. All the investment money related to TVXQ does not amount to much.
▲How are you planning to deal with Beijing Representation Corporation?
=We are going through the appropriate steps with a lawyer from China. They are at an advantage as this is a case that will be dealt with using the laws of China. That is why Beijing Representation Corporation did not sue the Chinese office of Crebeau either. If there was a problem with the company as a whole, why did they just sue the Korean main office? This is their blind spot. I believe that the truth will always win.
▲SM Entertainment is blaming the cosmetic company for the TVXQ dispute.
=We find it quite absurd that we are being blamed for the dispute between TVXQ and SM Entertainment. Many people were witness to TVXQ’s Xiah Junsu receiving permission from SM to invest in the company. All the procedures we had to go through were legally correct and there were no problems. SM Entertainment blamed us only after the dispute occurred between the agency and members of TVXQ. Because of SM, our work has been disrupted and our image has been tarnished.
▲How do you plan on solving the issue regarding SM?
=This is a problem that has nothing to do with the three members of TVXQ. It is a problem between two companies. SM Entertainment used Crebeau as a scapegoat and tarnished our image to put the blame of the TVXQ dispute on us. The Chinese and Japanese plans we have been making have been rattled because of SM’s claims. The main office of Crebeau in Korea, as well as our offices in China and Japan are planning to get together and file a large-scale lawsuit against SM. We will receive an appropriate apology for our tarnished image and disrupted work.
source: [sports seoul+DNBN]
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The above interview is all over the JYJ biased sites, and somehow the fans think it proves CJS is not involved with Crebeau and proves SM is just using the cosmetics business as a scapegoat, which is quite amusing. Some fans trust an interview from a businessman who's only connected with CJS through business ($$$), but choose to ignore HoMin and their parents, who are directly involved with TVXQ, as if their signed statements meant nothing.
The above interview was released on September of 2009 in Korea, before the DA's investigation was released, so there are many lies in that interview. Most obvious lie is about CJS's investment. Kang claims CJS only invested 1/10 of the total investment, but since CJS owns 62.5% of the company, that claim is either a flat out lie, or CJS's families invested the rest. Either way, it wasn't a small investment as SM was told, and both Kang and CJS lied about it.
Last two questions from the interview talk about SM, how they plan to sue SM to get apology, and we all know how that lawsuit turned out. SM was absolved from all charges by the Korean DA, and the roles are reversed now, SM filed a lawsuit against Crebeau which is still pending.
If you haven't read my post regarding the lawsuit yet, here's the link: http://truetvxq.blogspot.com/2011/01/cosmetics-companys-lawsuit-against-sm.html
I posted the interview because it does explain some reasons why SM was against the business, so let's begin.
First, let's talk about the product itself.
Kang states that the main ingredient of their product is sheep's placenta. Some fans defending the ingredient claim that the company may be getting the placenta after the sheep has given birth, but they kill lamb/sheep that's 3 months pregnant because that is when the placenta is high in nutrients. I'm not an animal cruelty activist, but that just sounds wrong. I'm getting sick just typing about it. That info used to be on the company's website just a month ago, but they must've changed the main ingredient because it only lists 'pearl' as the ingredient now, but if you search 'Crebeau Placenta' you can still find the products selling on the web, and you can find many references to the ingredients. Actually, when you search 'TVXQ placenta', the products still pop up along with related articles. As a fan, do you really want TVXQ's name associated with products named 'Placenta' and 'Embryo'?
Here's a place I found that sells the product, and it explains the ingredients in detail. Read what it says about the product. The site is in Japanese, and it looks like they're mail order site that sells health foods and other stuff, and I put the link in the google translator.
Do the products look suspect like HoMin's father said in the statements?
Here's another site that's selling Crebeau products.
http://www.shoppingmalldvd.com/product_490106_en Look how expensive the products are and the usage of "Dong Bang Shin Ki" on every item. I highly doubt they can charge that much money with just "Crebeau" name alone.
Kang also talks about the lawsuit between a Chinese company and Crebeau, and claims that the Chinese company promoted the products using TVXQ on its own. Translate these Chinese articles with google translator. The articles talk about 'TVXQ' member CJS's Crebeau promotion in Shanghai. The articles even mention Junsu's father and his twin brother's involvement in the business.
I don't know how many of the readers saw this video, but here's JaeJoong speaking at the Crebeau presentation in Shanghai in January 2009.
He's promoting the cosmetics product in person, yet he's just a small investor. Kang claimed in another interview that CJS happened to be at the product launch by chance while traveling China (CJS told SM they're taking a vacation). It's actually more surprising that there are people who really believe that claim. Anyways, he's promoting the Crebeau products, and says he has interest in caring his skin and used the product. Then he makes the famous quote: "After using (the product), your body will exude beauty (then everyone laughs)". Korean fans call that clip the "Body exuding beauty" video.
With these previous promotional activities, I don't know how the Chinese company can be blamed for using TVXQ for the promotion and the subsequent lawsuit. (covered in my previous post)
This post is getting pretty long so I am going to make another post in a day or two with more info about the cosmetics business and its problems.