Crebeau President Slams Beijing Company, Says Beijing Co. Used TVXQ for Ads without Permission

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Sports Seoul has news today from the President of Crebeau who recently sat for an interview to talk about the latest controversy between itself and SM Entertainment (SM).

First, here’s a little background on why this information is important:

  • *Crebeau is the cosmetics company into which Jaejoong, Yoochun and Junsu made a small investment.
  • *SM ridiculously tried to blame Crebeau for the contract dispute between SM and TVXQ. For the record, Crebeau doesn’t have anything to do with the contract dispute between TVXQ and SM.
  • *SM claimed they didn’t know anything about the three members investing in the company, and that the members lied to them to attend an event. This has proven to be untrue and photos surfaced of the SM-appointed manager at the Crebeau event with Jaejoong, Yoochun and Junsu.
  • *Beijing Representation Corporation filed a lawsuit against members Jaejoong, Yoochun and Junsu making allegations that the three failed to show up at Crebeau promotion events. The allegation is absurd.

Crebeau president Kang Seok Won hired The Beijing Representation Corporation (BRC) to handle all the Crebeau stores in the Shanghai region of China.

The President of Crebeau slapped down allegations being made by BRC against three members of TVXQ.  The contract between Crebeau and BRC — which was shown to Sports Seoul news agency — has a clause prohibiting BRC from using TVXQ to advertise the product.

Kang said BRC broke the contract terms and “irrationally held advertising events” trying to use TVXQ to promote the stores.

Here’s an excerpt from the interview with the Crebeau President:

Beijing Representation Corporation were not adhering to the clauses in the contract and were using TVXQ to advertise their products. They irrationally held advertising events, and when [Crebeau] intercepted their actions, [Beijing Representation Corporation] decided to file the lawsuit.

Therefore, the company tried to use TVXQ to advertise products but as soon as we heard of this and intercepted their actions, they retaliated.

The Crebeau president left no room for argument as to who is responsible for violating the contract in China.  He cleared the three members and again showed the contract as a means to prove that Beijing Representation Corporation broke the contract clause not to use TVXQ for any advertising.

He said:

In the contract, not even the ‘T’ of TVXQ is mentioned. The three members of TVXQ represent SM Entertainment, not Crebeau. The side that violated the contract is in fact Beijing Representation Corporation, not the three members.

Kang completely eviscerates Beijing Representation Corporation’s conduct in relation to TVXQ. He said BRC opened a Crebeau store which didn’t follow Crebeau’s standards, illegally sold Crebeau cosmetics at discounted prices, and even sold cosmetics tied with tickets for TVXQ’s canceled Shanghai concert without permission.

70 million won worth of damages were incurred as a result, according to Kang.

In addition, Kang also said SM has caused a major disruption in their work and has tarnished Crebeau’s image by making baseless allegations.

“SM Entertainment used Crebeau as a scapegoat and tarnished our image to put the blame of the TVXQ dispute on us,” Kang said.

He confirms that SM granted the members’ permission to invest in Crebeau. As a result, they are planning to file a lawsuit against SM for defamation.

Kang:

Many people were witness to TVXQ’s Xiah Junsu receiving permission from SM to invest in the company.  All the procedures we had to go through were legally correct an there were no problems.

The main office of Crebeau in Korea, as well as our offices in China and Japan are planning to get together and file a large-scale lawsuit against SM.  We will receive an appropriate apology for our tarnished image an disrupted work.

The president of Crebeau certainly plans to protect his company and isn’t afraid to speak out.

Source Material:
sports seoul+DNBN
Translation credits: jeeelim5@tohosomnia.net

 

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