Chen Baek-si "No Response to Request for Settlement Document Copies"
SM "External Forces Lured Members Who Had No Objections"
Group EXO members Baekhyun (Byun Baekhyun), Xiumin (Kim Min-seok), and Chen (Kim Jong-dae) have notified their agency SM Entertainment (SM) of their intention to terminate their exclusive contracts. SM has responded by alleging that there are external forces attempting to lure them away.
On the 1st, Lee Jae-hak, legal representative from the law firm Lin, stated in a press release, "The three members have notified SM of the termination of their exclusive contracts."
Photos from Chen Baixi's first arena tour in Japan, Yokohama performance [Photo by SM Entertainment]
They explained that since March 21, they had sent a total of seven certified letters to SM requesting transparent settlement data and copies of the basis for the settlements, but SM maintained its position that it could not provide copies of the documents. As a result, they claim to have notified the termination of their exclusive contracts on this day.
They asserted, "As members of EXO, we have diligently carried out entertainment activities," and added, "Throughout the long exclusive contract period, we have relied solely on SM's explanations regarding the settlement payments made each time, accepting only the unilaterally prepared documents by SM without specific and objective evidence."
They further pointed out, "Since the settlement cycle under the exclusive contract occurs twice a year, settlement data and the basis for settlements should be provided twice annually, but SM has never properly provided settlement data and evidence during the long 12 to 13 years of the exclusive contract period."
They also raised concerns about the long contract period. The lawyer stated, "SM signed long-term contracts exceeding 12 to 13 years and also had the members sign subsequent exclusive contracts, claiming a contract period of at least 17 or 18 years."
They interpreted this as a significant difference from the standard exclusive contract for popular culture artists (mainly singers) announced by the Fair Trade Commission, which sets the contract period at 7 years.
Regarding such exclusive contracts, they argued, "The period is excessively long, severely restricting personal rights, which constitutes an act of unfair use of bargaining position in transactions under Article 45, Paragraph 1, Item 6 of the Monopoly Regulation and Fair Trade Act." They added, "According to the Enforcement Decree of the same law, Appendix 2, such long-term forced periods fall under 'coercion to provide benefits' or 'provision of disadvantages (setting disadvantageous transaction conditions)' as types of unfair trade practices."
The lawyer also said, "Baekhyun, Xiumin, and Chen are considering filing a complaint with the Fair Trade Commission regarding the signing of the existing long-term exclusive contracts and subsequent exclusive contracts."
SM immediately rebutted. In a press release, SM stated, "We have confirmed the presence of external forces approaching our artists, delivering false information and incorrect legal evaluations, and making unreasonable proposals suggesting that it is acceptable to ignore our exclusive contracts and sign contracts with them."
They continued, "These external forces, despite having no genuine concern for the artists, are committing illegal acts by spreading rumors, slander, and sweet talk to induce our artists to make wrong decisions, violate exclusive contracts, or enter into double contracts."
SM pointed out, "These attempts by external forces also hide an intention to incite conflict and dismantle existing teams," adding, "This is an illegal act that must never be tolerated for the healthy future of the entire K-pop industry."
They further stated, "We will not tolerate those who pursue greed for money without any interest in the artists' futures and legitimate legal rights," and declared, "We will take all possible legal measures."
Big Planet Made Entertainment, mentioned as the external force allegedly approaching Baekhyun, Xiumin, and Chen, issued a press release on the same day denying the claims, stating, "The reports related to our company are not true."
Big Planet Made Entertainment drew a clear line, saying, "We have never met the mentioned artists, nor have we discussed or exchanged opinions regarding any exclusive contracts."
They also clarified, "MC Mong (Shin Dong-hyun) is currently not a director of our company and has no position, title, or involvement in operations."
They added, "It is true that we recently received a certified letter from SM signed by the CEO," but expressed regret over "the intention to link internal contract situations of other entertainment companies with unrelated headquarters," and warned, "If such claims continue, we will respond strongly with legal action."
Group EXO is a 2.5th generation K-pop idol group that debuted in 2013 with "Growl" and rose to stardom. They established the foundation for sharp choreography and a conceptual universe, with hits such as "Overdose," "Call Me Baby," "Tempo," and "Love Shot." They enjoyed popularity by achieving five consecutive million-seller studio albums.
Among the original 12 debut members, all Chinese members have withdrawn, and the group has been active as an eight-member unit. Among them, Baekhyun, Xiumin, and Chen have also promoted as the sub-unit group ChenBaekXi.
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