I’ve been searching the tags here for a sort of masterpost on SM’s problems but haven’t come across anything so I decided to post this. If anyone has more information to add to this list or a link to a more comprehensive post I would appreciate it. I hope it’s useful to anyone who doesn’t understand where all the blatant hatred of SM Entertainment comes from.
Compiled list from rigagirls.
2007 article on SM Entertainment’s “slave contracts.”
Translated article on Lee Soo Man’s corruption charges/being placed on the Interpol watch list.
Dkpop news blog post on SM’s history, mentions some of the earlier lawsuits.
Lee Soo Man caught doing illegal trading in January.
SM blocking JTL’s media appearances in 2002.
Prosecutors look at music bribery.
TV executive appears for questioning in payoff case.
Entertainment bribery investigation widens.
SM investigated by FTC for abusing negotiating power/unfair contracts.
Bribery probe continues/LSM suspected of embezzling 1.15 billion won.
Sex claims probed in payola case.
Forcing an industry to dance to a new tune.
Talent firms told to fix unfair deals (2008)
SM found guilty of interfering with JYJ’s activities.
FTC issues a sanction against SM for interfering with JYJ’s activities.
SM faces tax evasion probe.
SMTOWN building museum purchased for $4 million cash.
SM Entertainment to pay $10 million in additional taxes.
Tao’s studio fires back at SM Entertainment
Also, however biased in SM’s favor truetvxq’s site is the translation of TVXQ’s contract is accurate. Since SM has been ignoring the FTC for 13 years (if not more) it’s likely that current SM artists have similar contracts, and according to this contract:
SM’s only listed obligations are to promote the artist’s popularity, and to notify the artist of their schedule.
SM unilaterally decides on activities.
SM is allowed to extend the contract if an artist is unable to fulfill obligations due to personal reasons.
SM owns the rights to any music that is written or composed by the artist even after they leave the company.
If the artist fails to perform activities that were decided upon by the company they are required to pay for any damages (there is no set amount, which means SM is allowed to demand whatever they want from the artist).
In order to terminate the contract the artist has to pay 3 times the total investment amount and reimburse twice the potential lost profits. Which would amount to way more than most SM artists even earn working for the company.
It’s important to keep in mind that many SM artists are still minors at the time they debut and that their parents have to sign the contract as well. At the age of 14-19 it is unlikely that their artists fully understand how these contracts will impact their lives.
Also worth noting that various artists (JYJ, Luhan, Tao) have claimed they never received pay stubs or legal documentation with a breakdown for their pay and SM has refused to present paperwork at court. They also have yet to pay fines to JYJ for interfering with their activities.
According to Forbes, SM is worth $660 million as of 2013. They are immensely profitable and the most successful company out of the Big 3, yet as far as I know, neither YG nor JYP have been plagued by accusations of unfair payment.
