SME Ordered to Pay 20 million won in Compensation to JYJ

SM Entertainment (SME) will now have to pay 20 million won ($17,000 USD) in compensation to JYJ every time they interfere with the boy band’s entertainment activities, local media reported today. The decision was made by the Seoul Central District Court on Feb. 21st, the report said, although there still remain obstacles for JYJ to overcome in order to begin full promotional activities as a group.

“Despite a preliminary decision made on Oct. 27th, 2009 that had ordered SME to nullify their exclusive contract with JYJ, the management agency held a press conference on Nov. 2nd, 2009 to refute the decision, stating JYJ must fulfill their exclusive contractual obligations. Also on Oct. 2nd, 2010, SME sent an official letter to Warner Music Korea requesting suspension of all production and distribution of JYJ’s worldwide album. Based on these facts it’s very probable that the agency could interfere again with JYJ’s activities and that’s why we made this decision,” the court said in a statement.

“Therefore, SME should abstain from interfering with JYJ’s entertainment activities, and in case they do, SME must pay 20 million won for every violation,” the court added.

Meanwhile, the Seoul Court has dismissed SME’s lawsuit against JYJ on Feb. 17th ordering the agency to stay away from obstructing the boy band’s independent celebrity activities. But an official from CJes Entertainment, JYJ’s new management agency, told local media that there still remains many obstacles for them to overcome. “In order to have JYJ really get closer to the public and start new activities, we have to fight many other cases in addition to these legal issues,” the official said.