SM lost its main public excuse for the dispute between itself and JYJ (Jaejoong, Yoochun, Yunsu).  For over a year, SM has publicly blamed the cosmetics company CreBeau for stirring up the controversy, and accused CreBeau of being responsible for the discord between itself and members of JYJ.

CreBeau didn’t sit idly by and let that happen.  A bad reputation can put a company out of business, especially if they get blamed for the breakup of the biggest Asian group in the world. 

The cosmetics company accused SM of using it (CreBeau) to cover up the “internal problems” SM obviously has with JYJ, and CreBeau filed a defamation lawsuit against SM.

According to translated reports, the Court basically exonerated CreBeau of having any responsibility for ruining the relationship between SM and JYJ.

This is my opinion, but quite honestly anyone with common sense could tell that CreBeau had nothing to do with the fact that SM’s contract with JYJ is 13 years, or the fact that it puts members in an inferior position, or the fact of SM’s lopsided money split.  Those were definitely internal problems which had nothing at all to do with CreBeau.

Back in Nov 2009, CreBeau president Kang Seok Won called the allegations baseless saying:

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

… 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.

Further, Kang said that in May 2009 SM representatives even visited the original branch of CreBeau in China twice and approved of JYJ’s small investment in the company.  From a translated article at Daum.com:

Kang said, “In May 2009, some SME representatives visited the original branch of CreBeau Cosmetics in China twice. They determined that the members were not going against contract terms in any way, and now SME is distorting the true reason behind the case and putting out ridiculous claims…

“SME said that the whole lawsuit was due to the members’ wanting to continue a business that went against contract terms. This has no credibility in that SME has already approved of the investments previously. The members wouldn’t risk all the things that they gained as TVXQ by creating a conflict with their company over insignificant investments.

“It was a private investment, and the three have no ownership over the business in any way. They’re merely investors, nothing less, nothing more. What does this have to do with the lawsuit, and why is SME attempting to connect the two together?”

In addition, SM accused members of JYJ of lying to them about going to China for a CreBeau event.  They claimed JYJ told them they were going on vacation in China, but instead attended a CreBeau event.

The fans became suspicious immediately because other fans who attended the CreBeau event posted numerous pictures of the SM-appointed manager actually AT the event standing right next to JYJ.

After months of SM’s attempts to ruin CreBeau, it looks like CreBeau has won out in the end for what should have been obvious.


Source Mat.(short for ‘material’):
CreBeau President Slams Beijing Company
CreBeau President Fights Back After Getting Blamed by SM



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