EXO Members Refute SM's 'Behind-the-Scenes Theory' "The Core Issue Is Refusal to Provide Settlement Data"

MC Mong Denies Illegal Solicitation Allegations "Only Comforted Junior"
Chen Baek-si "Automatic Extension if Album Not Completed? Slave Contract"

Group EXO members Baekhyun (Byun Baekhyun), Xiumin (Kim Min-seok), and Chen (Kim Jong-dae) have denied the conspiracy theories raised by their agency SM Entertainment (SM), which notified them of contract termination. They stated, "The core issue is that SM refused to provide settlement data, leading to the contract termination notice."

Lee Jae-hak, a lawyer from Law Firm Lynn representing them, said in a second statement released on the 2nd, "We are distinct individuals capable of making our own judgments and actions. The decision to demand settlement data and reclaim their rights was made by our artists themselves after long contemplation and anguish, and it is absolutely not due to any external forces' involvement."

EXO ChenBaekXi Photo by SM Entertainment

On the 1st, they announced through their lawyer that SM had not properly provided settlement data and had forced them into slave contracts, thereby notifying SM of their contract termination. In response, SM denied the claims and argued that the sudden contract termination notice was due to a malicious external force's plot.

The lawyer refuted SM's claims, stating, "Baekhyun, Chen, and Xiumin have not entered into or attempted to enter into any other exclusive contracts besides the existing ones with SM."

MC Mong (Shin Dong-hyun), who was identified as an external force and served as an early internal director at Big Planet Made Entertainment, also released a statement through his legal representative on the 2nd, saying, "As a senior and junior in the music industry, I only have a personal friendship with Baekhyun, and I have never taken any action to recruit the artist by exploiting this friendship."

He added, "I only comforted a junior struggling with company issues, and there was no inducement to any illegal acts as mentioned by SM," denying the allegations.

Regarding SM's claim that the artists were allowed to view settlement data at any time, Baekhyun, Xiumin, and Chen countered, "The exclusive contract stipulates that settlement data must be 'provided,' so fulfilling the obligation by merely allowing 'viewing' cannot be considered proper compliance."

They further stated, "Fundamentally, refusing to provide data by citing 'trade secret infringement' when the artists request information about their own achievements is an act that cannot justify breaching the exclusive contract."

They pointed out, "Article 5, Paragraph 1 of the subsequent exclusive contract proposed by SM states, 'This contract shall be for a period of 5 years from... However, if the minimum number of albums specified in Article 4, Paragraph 4 is not released within this period, the contract period shall be automatically extended until the obligation is fulfilled.'"

Regarding this, they said, "There is no upper limit to the period of automatic extension. Such a clause, which automatically extends the contract period without limit until the album release quota is met, is clearly a slave contract. Our legal representatives have pointed out that this constitutes 'an act of unfairly using one's business position in transactions,' and the artists share this view."

They reiterated that they are seriously considering filing a complaint with the Fair Trade Commission regarding such contracts.

EXO ChenBaekXi Photo by SM Entertainment

However, they emphasized that even if they terminate their exclusive contracts with SM, they are exploring ways to continue team activities with EXO members.

They said, "In fact, during negotiations with SM before this contract termination, the artists proactively proposed a negotiation plan to continue EXO activities together even if Baekhyun, Chen, and Xiumin leave SM."

On the day, the three members proceeded with filming the music video for EXO's 11th anniversary new song as scheduled.

Meanwhile, EXO is a 12-member male idol group that debuted in 2013, gaining global popularity by establishing sharp choreography and a unique universe. Baekhyun, Xiumin, and Chen have also been active as the unit group ChenBaekXi.

SM's stock price plunged by -7.2% on the morning of the 1st, when the news of ChenBaekXi's contract termination notice became known, wiping out about 300 billion KRW in market capitalization.