SM, EXO Member 'Slave Contract' Controversy... Stock Price Plummets Over 7%

EXO Baekhyun, Xiumin, Chen Notify SM of Contract Termination
SM States "External Forces Luring Our Artists"

SM Entertainment (SM) affiliated group EXO members Baekhyun, Xiumin, and Chen have reportedly notified the termination of their exclusive contracts, causing SM's stock price to plummet.

As of 2:10 PM on the 1st, SM's stock price was trading at 102,500 KRW, down 6.56% compared to the previous day. The stock, which started higher, began to decline around 10 AM and fell to as low as 100,600 KRW by 12:05 PM.

This is interpreted as being due to the fact that EXO members Baekhyun, Xiumin, and Chen, who are signed under SM, notified SM of their intention to terminate their existing exclusive contracts.

On the 25th, EXO is performing at the Pyeongchang Olympic Stadium in Pyeongchang-gun, Gangwon-do, where the closing ceremony of the 2018 Pyeongchang Winter Olympics was held. Photo by Hyunmin Kim kimhyun81@

On the 1st, Lee Jae-hak, a lawyer from Law Firm Lin representing the three EXO members, stated, "From March 21 until recently, we sent seven certified letters to SM, repeatedly requesting transparent settlement data and copies of the settlement basis, but SM maintained an unfair position that they could not provide copies of the data."

He continued, "SM has signed long-term contracts of over 12 to 13 years with artists, and despite this lengthy period, they forced the artists to sign subsequent exclusive contracts again," adding, "Artists feel that SM is coercing them into so-called slave contracts based on its superior position."

In response, SM stated in an official position, "We have confirmed that external forces are approaching our artists, delivering false information and making unreasonable proposals," and "These external forces are inducing our artists to violate valid exclusive contracts with us."

SM also revealed that it detected circumstances where Big Planet Made Entertainment approached the three EXO members to induce them to sign contracts with them and sent a certified letter to the said entertainment company.

However, Big Planet Made Entertainment denied the claims, stating, "We have never met the artists mentioned in the reports, nor have we discussed or exchanged opinions regarding exclusive contracts," and expressed regret, saying, "We regret the intention to associate the internal contract situation of another entertainment company with our unrelated company."