Hangeng's case: The Reasons Why He Sues SM

Reasons to HanKyung filing for contract terms disposition against SM Entertainment?
Hankyung, Super Junior’s only Chinese member in the 13 member group, has filed a lawsuit against the effects of his exclusive contract with the defendant SM Entertainment because of their unfair activity scheduling which has caused him gastritis and kidney illness. Through Hankyung’s legal representative, the lawsuit to terminate his exclusive contract was filed on the 21st with the Seoul District Court.

According to the litigation, Hankyung has not even been given a single rest day per week after debut. It has been said, “Because of the recent continuous overseas activities etc, it has almost been 2 years since he last rested, he has been rushing schedules (all this while).” “Due to contract obligations and heavy penalties, even during bad health, he was not to skip any scheduled activities.” Hankyung’s side emphasized, “Because of these kind of health problems, (he) has continuously put forward requests to rest, but has always been rejected.” They added, “Except for when they started their perfomances in 2006, at other times, he had to stay in Korea.” “Through their manager, Hankyung requested from SM for leave to return to China to rest but he was rejected every single time.”

Hankyung’s side added, Hankyung’s exclusive contract terms
▶SM was definitely in a more superior position signing on unfair terms in the contract
▶The contract would span 13 years (starting from the release of their first album) ▶Incorporated excessive damages and in terms of the contract, if he voided it, he would be blocked (from other activities)
▶Allocation of rights and obligations in the contract were significantly off-balanced
▶SM had the right to request Hankyung to be in any activity
▶Profit-splitting rights and provisions were also off-balance, hence the intiation of the lawsuit against SM to terminate his exclusive contract. On the other hand, after Hankyung intiated litigation, SM stated their stand that “for the sake of Super Junior and Hankyung, they are in talks to resolve the problem”.

* Source: 스타뉴스
* translated by ゞilσvεjr⌒★@sj-world.net

The reason why Hankyung brought in the lawsuit against SM

These are 6 unfair things from Hankyung’s exclusive contract with SM which are stated by Hankyung’s side (not sure from his lawyer or his representative)

1. The contract has many provisiosn which are in SM’s favor. When the first contract was signed (January 2003) Hankyung was 18 then (underage) and being a Chinese person, he didnt know everything about Korean showbiz so SM had given him a contract with the content that SM suggested. Not only that, but those side agreements with SM after then (on Febuary 2007 and December 2007) also were only from SM (aka Hankyung didnt have chance to suggest the provisions which are in his favor)

2. The period of the exclusive contract is 13 years is too long. The first contract was signed stated that it will be ended 10 years after Super Junior’s 1st album but it has been extended to 13 years on the 2nd modified time. Super Junior’s 1st album was released in December 2005 so the contract will be ended in December 2018 and Hankyung will be 35 then. Moreover, if Hankyung gives up some activities because of his health or study, the contract’s period will be extended according to the situation so it might be 13 years on the paper but it could be longer in real life and this violated seriously to Hankyung’s civil right.

3. There is clause stated that Hankyung will have to pay SM a lot for breaking contract or creating damages toward the contract, thus this prevents Hankyung to cancel the contract or some agreements on the contract. If Hankyung wants to move to another company and continue his activities, he will have to pay SM threefold of the money that SM had invested to him and pay twofold for the loss of the remain time of his contract.

4. The amount between Hankyung’s rights and responsibilities that stated in the contract are not the same. Hankyung has to follow and attend all the schedule that SM give him, has to do/follow all SM’s orders/intrustions unconditionally but he doesnt have right to request his contract to be revised.

5. SM has forced Hankyung to do some activities that against his will. At the training time, if Hankyung was late or absent or didnt fulfill his duty he would be fined 10,000won for the 1st time, 20,000won for the 2nd time. After debut, if he was late or absent from his schedule, he would have to pay for all the damage, if he cut the contact with SM more than 1 day according to the situation SM can cancel his contract. And if he doesnt fulfill his duty, according to the situation he could be fined 5,000,000won. According to the contract, Hankyung doesnt have any right to decide for his schedule, he has to follow SM’s words and only attend the events/performances that SM’s manager designed for him. Hankyung even had been forced to attend some activities because of SM’s order when he was ill.

6. The profit distribution and copyrights between SM and Hankyung. During the contract period, all the copyright of albums and song will belong to SM. Although Hankyung wrote, composed, arranged the songs, they can be used by SM without his permission. About the profit, the album has to be sold more than 50,000 pieces so that Hankyung can receive 2% the profit. The digital sales has to be equal with the net profit so Hankyung can get 10% and the oversea income has to be equal with the net profit too so Hankyung can get 60%. About the oversea activities income, after SM deduct all the promotion activities’s expenses & fees, the remain money will be divided among the members.

* Source: 스타뉴스
* translated by evanesco@sj-world.net

Wth! @#$#@$#
SM is a BEAST! MONEY SUCKER!
I'm speechless.
Poor Hannie.
=(

Joanna