Saturday, September 5, 2009

[News] Chariman of Cosmetics Company that is Suing SM: “It’s just a simple financial investment.”

“The three members of DBSK, each invests about ₩ 70 million, 60 million, and 40 million.”

The CEO of CREBEAU cosmetics company, Kang Seok-won met SM representative Kim Young-min on the 4th at Seoul central district prosecution office for defamation issue has been accused to SM.

Earlier on the 2nd, he met reporters at the company headquarter in Seocho, Seoul. “The case here is about the long-term distribution contract that reveals an unfair distribution income. However, SM Entertainment distorted the nature of dispute and pointed our company as the main cause.” He puked a resentment.

“Since last July, SM requested a content certification by fact-checking the investment information about DBSK members who invest in our company. The members are only investors. There’s no such intellectual property involved in which SM has been concerning about. We have enough stated our position without distorting the truth. The announcement about members’ investment information has been passed.”

This is what DBSK members’ investment is about. According to Kang Seok-won on the 4th, each member invested about 70 million, 60 million, and 40 million won. Simply by seeing from the equity ratio, they won’t be able to participate in company’s management.

Kang explained further, “SM officials had visited our office in China twice last May for the purpose of investigating pictures rights that are used on the product sold. Those (SM) people need to cross check their facts and stop distorting the nature of the case. It’s an irrelevant asserts and they’ll only find faults in their investigation.”

About the rumor that ‘members investing in cosmetics business was allowed by SM’, Kang said, “The members said directly themselves, ‘if we’re not allowed to invest here, there won’t be any possibility of us to invest at all.’”

T/N: Equity ratio is amount of investment divided by total company equity. Unless one’s investment reaches 20% – 50% of company’s total equity, they won’t have significant control over company’s policies.

source: ohmynews
summarized trans: sharingyoochun@wordpress

shared by: sweetfig@blogspot
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