In the wake of K-Pop Boy Band EXO members Byun Baekhyun, Kim Min-Seok (A.K.A. Xiumin), and Kim Jong-Dae’s (A.K.A. Chen) contract termination notice, SM Entertainment has released a statement. They are refuting the claims made by the artists’ legal representatives. The agency, known for managing some of the biggest K-pop acts, addressed the situation in a comprehensive response, shedding light on the details surrounding the contracts and settlement processes. SM Entertainment began by expressing its deep appreciation for EXO. They emphasised their commitment to the artists by increasing settlement rates twice, even when their existing contracts were still valid. The agency highlighted that they have a well-established system in place, allowing the artists to check settlement details at any time. Throughout the years, the artists have raised no issues regarding the settlement process, reported Xsports News. Furthermore, when it was time to discuss new contracts, all three artists willingly signed valid exclusive contracts after mutually beneficial negotiations, with no concerns raised regarding the settlement aspects.
However, the agency reported that they were taken aback when the artists’ legal representative claimed that the newly signed contracts could not be accepted and hinted at the influence of an external force. Despite their surprise, SM Entertainment made efforts to respect the artists’ opinions and requested assurance that no additional contracts that breach their exclusivity would be signed. However, negotiations for an agreement came to an abrupt end when the legal representative unilaterally notified the agency of the contract termination without providing any explanation regarding potential dual contracts.
In their statement, SM Entertainment also addressed two key issues. First, they clarified the transparency of the settlement process, emphasising that payments were carried out regularly. “Although the settlement reports are available for viewing at any time, they are requesting copies for different purposes and are using as reasoning for contract termination,” read the statement. SM Entertainment also stressed its concern about providing copies of settlement reports to external parties, as it could potentially harm other EXO members.
Second, the agency emphasised the legitimacy and validity of both the existing and new exclusive contracts. “We faithfully follow the Standard Exclusive Contract Form for Entertainers enacted and recommended by the Fair Trade Commission and the Ministry of Culture, Sports and Tourism,” read the statement. It further added, “The validity and legitimacy of the contracts were acknowledged by the Supreme Court through a lawsuit filed by former EXO member Huang Zitao on confirming the invalidity of his exclusive contract.”
SM Entertainment highlighted that they ensure artists receive proper assistance and have the freedom to renew their contracts after in-depth discussions. The new exclusive contracts were signed after thorough consultations, involving the artists’ appointed lawyer and a one-and-a-half-year-long discussion process.
SM Entertainment concluded its statement by highlighting its commitment to protecting EXO and its fans, as well as all its artists. They vowed to take strong action against external forces that attempt to manipulate artists with financial temptations, flattery, and baseless rumours.
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