Exo in crisis: Baekhyun, Xiumin and Chen sue SM Entertainment, end contracts

SEOUL – Baekhyun, Xiumin and Chen of Exo are leaving their long-time agency SM Entertainment and embarking on a legal battle to claim unsettled payments.

The legal representative of the three artistes announced on Thursday that the Exo members have notified SM Entertainment of the termination of their exclusive contracts with the agency.

“Since March 21 until recently, we have repeatedly requested SM Entertainment to provide copies of materials and evidence for payments,” said their attorney, Mr Lee Jae-hak of South Korean law firm Lin, through a statement. “But SM Entertainment has maintained its unreasonable stance to not provide the documents.

“Therefore, as of June 1, today, we notified (SM Entertainment) of the nullification of the (three artistes’) existing exclusive contracts with SM.”

According to the details spelt out in the statement, the three artistes’ exclusive contracts stipulate SM Entertainment must pay them two times a year and provide the settlement records and evidential documents accordingly.

But over the past 12 to 13 years that Baekhyun, Xiumin and Chen have been affiliated with SM Entertainment, the company has not provided the proper materials, only arbitrary documents.

Recently, the artistes requested the documents through the lawyer, but SM Entertainment rejected the request.

Citing a precedent, the statement claimed that the agency’s failure to provide the settlement materials as stipulated in the exclusive contracts is a reason for the artistes to request nullification of their contracts.

The statement said the three artistes plan to file a lawsuit against SM Entertainment for outstanding payment and may take other legal action if necessary.

The lawyer also claimed SM Entertainment is “committing tyrannical acts” against the artistes, allegedly forcing them to sign contracts with unreasonable terms, using the company’s superior status to control them.

“While signing a long-time deal of 12 to 13 years with its artistes, SM made its artistes sign another exclusive contract for when the initial contract term comes to its end, leading to prolonged terms of at least 17 to 18 years,” the statement read.

Considering the years many artistes spend as trainees at the label before their official debut, artistes often feel that they are forced to sign so-called “slave contracts” spanning nearly 20 years by SM Entertainment, the statement added.

The statement referred to a Fair Trade Commission rule stipulating that contracts between agencies and artistes cannot exceed seven years.

On the last page of the statement, Baekhyun, Chen and Xiumin apologised to fans and asked for their continued support in spite of the situation.

“We feel scared and daunted in taking this first small step to talk about the unfair treatment (we have faced) until now. Please realise the courage it has taken us (to do this). We’re truly grateful to all the fans who have supported us for a long time,” they said.

SM Entertainment released an official statement on Thursday morning that seemed to refute the allegations made by the three Exo members. Other members in the eight-piece boy band include Suho, Chanyeol, D.O., Kai and Sehun.

While avoiding direct mention of the alleged accusations or the names of the artistes, the statement said it had discovered “some outside forces” who were trying to coerce its artistes into making the wrong legal decisions.

“We have discovered that these outside forces are not only luring the artistes to breach the valid exclusive contracts they have signed with the company, but using them to get through to other artistes to also violate the contract terms or sign double-contracts,” SM Entertainment said in its statement.

“We will take legal action against these people who pursue only their greed and profit without any profound interest in the future or the rights of the artistes.”

Exo debuted under SM Entertainment in 2012 with 12 members. Kris Wu, Luhan, Tao and Lay Zhang have since left the boy band. THE KOREA HERALD/ASIA NEWS NETWORK