EXO’s Baekhyun, Xiumin, and Chen have taken their contract dispute with SM Entertainment to the next level, filing a lawsuit against the company with the Fair Trade Commission for “abuse of a superior position.”
As the conflict between the trio and SM intensifies, SM has responded that they will provide payment records, making headlines.
On May 5th, Attorney Lee Jae Hak of the law firm Lin, the legal representative of Baekhyun, Xiumin, and Chen, stated through a press release, “We have reported the fact that unfair contract practices continue unabashedly at SM, despite the Fair Trade Commission having issued corrective orders twice in October 2007 and January 2011 against SM.” He further elaborated, “We have requested the Commission to thoroughly investigate SM’s violations and demand prompt corrective measures. We have also requested a full-scale investigation into exclusive contracts for SM’s artists.”
The contested contract conditions by the three EXO members include: setting the contract start date as their debut date, despite it being signed earlier; a longer contract duration compared to other agencies in the industry; and the extension of the contract period due to reasons like overseas activities. Baekhyun even released a portion of his contract as evidence.
Their legal representatives argued, “If a specified minimum number of albums are not released, the contract period is automatically extended until this condition is met. There’s no upper limit to this period.” They declared, “This is a slave contract.”
In response, SM announced that they’d provide copies of the payment documentations as requested. “After careful consideration, we will provide the documents for their review,” They stated. “We have explained this situation and sought understanding from other EXO members as well.”
SM also made it clear that “contracts cannot be terminated simply by unilateral notifications lacking proper grounds.” They stated, “We will continue to consult closely with the three valued artists. We will do everything in our power to ensure that EXO’s activities, which fans look forward to, are not hampered.”
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