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SM Entertainment Execs Deny They Tried To Derail JYJ's Career: Label Considering A 'Legal Response' To FTC Sanction

By Jesse Lent | July 25, 2013 03:12 PM EDT

Executives from SM Entertainment responded to a sanction issued on Wednesday by the Korean Fair Trade Commission (FTC), ordering the record label to stop attempting to sabotage the band JYJ's career.

In a short statement to the publication Newsen, a SM Entertainment spokesperson denied the allegations and said the label is weighing their legal options.

"Even though we never interfered with their activities, we're disappointed that there was a sanction," the SM Entertainment spokesperson said.

"We're looking for a legal response to the sanction."

At Wednesday's press conference, a representative from the FTC laid out the timeline of how SM Entertainment allegedly started a campaign, with some help from the Korean Federation of Pop Culture and Art Industry (KFPCAI), against JYJ after the three bandmates left boy band TVXQ in 2009, over a contract dispute.

TVXQ is an SM Entertainment act.

"Despite JYJ's high album sales, their activities as a group were restricted in Korea, and they had to promote through areas where SM's influence was less [pervasive] like dramas, musicals, and advertisements," the FTC rep said.

SM Entertainment executives allegedly blacklisted the group from television performances and even asked Warner Music Korea to stop distributing the first JYJ album "The Beginning."

According to the FTC, the KFPCAI assisted in urging Warner to drop the JYJ album and reportedly issued a formal request to three major broadcast stations, six music and cable stations, five online music sites and 11 album retailers to not sell or promote JYJ's album.

"SM, one of the Big Three [South Korean entertainment] agencies, and KFPCAI, which is composed of various organizations involved in the entertainment industry, applied incredible pressure on companies and as a result, JYJ experienced cancellations of music and variety programs, a change in music ranking, and cancellations of documentaries and theater screenings," the FTC representative said.

The three members of JYJ, Kim Jae Joong, Park Yu Chun and Kim Jun Su issued a statement through their record label C-JeS on Wednesday, reacting to the news.

"We thank the FTC for their decision. We have been fighting arduously since 2009, and it felt like we were walking in a desert with no end in sight." the statement read.

"But we felt that things have been changing for the better, and we have gained a lot of strength from it. With this order from FTC, we hope that we can perform on fair stages and go about our activities in a better environment. We also hope that this helps to open the doors for our juniors."

Tagged :  JYJ, FTC, SM Entertainment, TVXQ

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