SM Entertainment has denounced the recent court ruling and three renegade members of TVXQ in public. In a press conference held Monday afternoon in Yeouido top-ranking officials of SM Entertainment called the lawsuit a big fraud. They claimed that the lawsuit is not about unfair contracts or human rights, but a pure scam motivated by the three members’ greed over their cosmetics business. They also accused Hero Jaejoong, Micky Yoochun, and Xiah Junsu of betraying the trust of the management company, the fans, and their fellow members (Max Kangmin and U-know Yunho) and pursuing only their own financial interests.

An official said at the press conference that the three members told him that they were going on a vacation to China in January of this year, but they were actually there to promote their cosmetics brand. The management company found out about it only after their photos were posted on the cosmetic company’s website. He also said that the company is going to appeal the initial court ruling and file their own damage compensation lawsuit against the three.

Meanwhile, the three members remained silent except to say through their lawyers that they hope SM Entertainment would respect the court’s verdict and understand their position.