Monday, August 10, 2009

[NEWS] SM, “We give 40% of profits to Dong Bang Shin Ki”

SM Entertainment revealed recently, “We split profits with group Dong Bang Shin Ki at the ratio of 4:6.”

Revealed on MC programme “Current Affairs Magazine 2580′ aired on 9th August, Dong Bang Shin Ki has brought in a recorded 49.8 billion KRW. Of these, SM has invested 22.4 KRW. And the rest was split between the group and SM at 4:6.”

SM said, “Of the benefits, Dong Bang Shin Ki gets 4 proportions and SM gets 6 proportions. Of the 27.4 KRW, Dong Bang Shin Ki gets 11.0 KRW and SM gets 16.4KRW.”

It was also revealed that for overseas promotions, Dong Bang Shin Ki gets 7 and SM gets 3 proportions.Also for overseas event, CF revenues, they are split at 7:3.

But according to the 3 members of Dong Bang Shin Ki, “The splitting of profits is not transparent. We cannot trust them.”

And also about their 13-year contract, SM said, “We also secured the time when the group went overseas to promote. In Korea 3~4 years, in Japan 3~4 year, in China, it was 3~4 years.”

And about this, the 3 members’ lawyer said, “This is a contract which will make this idol stars work their live. Also for album sales, they only receive no more than 0.4~1% for each member.”

Credits: sookyeong@kbites
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1 Comment:

Anonymous said...

Well, SM already subtracted the initial 22.4 billion won for the expenses, so that pays for the choreo, styling, and living expenses etc. Doesn't that mean the money they get from the 4:6 ratio or the 7:3 ratio is basically completely free money that they use on new groups, or business investments that has NOTHING to do with TVXQ? When I think about it, the agency is still taking at least 50% of the profits averaged which seems unfair to TVXQ since they are the ones putting in 20 plus hour workdays. Shouldn't that be more like 10-20% for the company? Also 10.1 billion won split 5 ways is still 2.02 billion won per member for ALL five years. That's about 1.8 million U.S, dollars for one member in all five years. An average family physician makes 1.5 million dollars for five years, and that's the kind that works 8-5 work hours. U2 makes about 108 million dollars a year. So yeah, it's still more then I'll earn in 10 years, but I'm not as talented as any of the TVXQ members, and definately wouldn't have been able to put in the amount of work they, and I don't think a lot of other people would be either. Those kind of numbers make me feel like SM's lying. If what they're saying is true, then why aren't the submitting the documentation for all of TVXQ's expenses in court? Also when they say 3-4 years each in Korea, Japan and China, how are they calculating that when the members are traveling to all 3 countries numerous times in one year? If they didn't think TVXQ would be holding activities in all 3 countries simultaneously when they drew up the contract, since the situation's changed now, why don't they change the contract? Why are they still insisting on the 13 year contract? K, that's it. Wow, it's an essay! I know it's a long post, but SM's statements have been really frustrating me. feel free to copy and paste!