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JYJ ends legal dispute with S.M., formally separates from TVXQ

South Korean pop group JYJ ended more than three years of legal dispute with its former management agency, S.M. Entertainment, bringing to an end an "unjust" contract between them, court officials said Wednesday, marking its members' official departure from their original group.

The members of JYJ -- Kim Jae-joong, Park Yu-chun and Kim Jun-su -- and S.M. Entertainment, one of the country's top entertainment agencies, agreed under court mediation that their contracts ceased as of July 31, 2009, the officials said.

After the three debuted as members of the K-pop group TVXQ in 2004, they filed for a court injunction that day to halt a contract with a 13-year term under which the agency allegedly took too great a share of the group's earnings.

Months after the Seoul Central District Court accepted that request, in 2010, the three formed a new band, "JYJ," and signed a management contract with C-Jes Entertainment, a minor company.

They have since engaged in a legal battle to negate their contract with their former management agency, raising awareness of local industry customs of forcing unfair management contracts on new faces in return for helping them become top celebrities.

S.M. officials confirmed the two sides have ended their legal dispute.

"We judged that we no longer need to provide management service to the three since they showed no intent to continue activities as members of TVXQ," an official said. "We came to end the trial through today's court arbitration, agreeing not to disturb each other's activities."

C-Jes Entertainment said the agreement, together with the 2010 court ruling. laid ground for improving the unfair industry customs by delivering a message that unjust management contracts with new artists are invalid. (Yonhap News)



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