SM Refutes EXO-CBX’s “Slave Contract” Claims and Highlights Voluntary Nature of Their New Exclusive Contracts
SM Entertainment has directly refuted the claims made by EXO’s Chen, Baekhyun, and Xiumin (CBX).
On June 5th, SM released a press release stating, “The exclusive contract period, which the artists claimed to have an issue with and would bring up to the Fair Trade Commission, is a contractual condition that our company has already been recognized as legitimate by the Supreme Court in 2018.”
They countered CBX’s claim of a “slave contract” by saying, “The Supreme Court determined that in the casting, training, and producing process of rookie artists, there is a unique aspect of requiring the full support and efforts of the management company, as well as substantial investment costs, so the exclusive contract period cannot be considered excessively long.”
They continued, “EXO members, including Chen, Baekhyun, and Xiumin, entered into new exclusive contracts after sufficient consultations with our company, with the assistance of a large law firm, without being forced into a re-signing situation prior to the expiration of their existing exclusive contracts. Over the final month of negotiations, we mutually exchanged and agreed upon amendments, even down to the precise wording.”
SM emphasized that the contract duration automatically extending based on album release quantity was also mutually agreed upon and reflected at a reasonable level. They stressed that Chen, Baekhyun, and Xiumin’s claims were not factual.
Furthermore, SM added, “The amount of the contract fee was adjusted upon the request of EXO members, and it was agreed to be paid at the beginning of the new exclusive contract. Currently, one member of EXO has not yet re-signed and is still in discussions with our company, which demonstrates the voluntary nature of the contract renewal,” providing additional evidence.
SM also highlighted that the existing exclusive contract and the new exclusive contract were separate, and Chen, Baekhyun, and Xiumin voluntarily entered into the new exclusive contract.
However, afterwards, the three suddenly reversed their position and sought to deny the validity of the new exclusive contract. They have repeatedly pressured the company, threatening to terminate the exclusive contract, report to the Fair Trade Commission, and disclose the matter to the media if SM does not provide copies of settlement documents.
SM expressed regret over the actions of Chen, Baekhyun, and Xiumin, which were based on false or distorted facts and without any consideration of the recent Supreme Court ruling or a review thereof, and reported to the Fair Trade Commission.
Lastly, SM stated, “Even in a situation where suspicions regarding the intervention of third parties have not been resolved, we will make efforts to provide copies of settlement documents to the three artists and maintain EXO’s activities. We will actively respond to any attempts to disrupt properly concluded contracts or distort objective facts.“
Source: Daum.
