SM Entertainment has announced that it will disclose copies of the settlement documents for EXO, however, is it too late?
On June 5th, SM issued an official statement regarding the recent request for copies of settlement documents from Baekhyun, Chen and Xiumin. SM said, “We would like to inform you of the decision we have made after careful consideration of the request for copies of settlement documents from the 3 artists.”
Around the same time this statement was released, EXO-CBX said they have filed an official complaint with the fair-trade commission asking them to investigate every SM artist contract.
SM emphasized in their statement that settlement documents are confidential information that cannot be disclosed to third parties. They further explained, “In the case of a group, the information of other members is also included, requiring special caution.”
Furthermore, SM explained the situation and obtained consent or agreement from the other EXO members, apart from the 3 artists, regarding the provision of settlement document copies. They emphasized their commitment to do their best to ensure that EXO’s activities, which fans are eagerly anticipating, are not affected.
Here is the official statement from SM:
Hello, this is SM Entertainment.
We would like to inform you of our decision regarding the request from Baekhyun, Chen and Xiumin (hereinafter referred to as the “3 artists”) for copies of settlement documents.
- Settlement documents are confidential information that cannot be disclosed to third parties – Special caution required as group members’ information may be included.
Settlement documents may contain various information such as specific activities, settlement rates and methods, and contract fees for each artist. These are confidential information of both our company and the artists that should not be exposed to competitors or other third parties. Additionally, in the case of group artists composed of multiple members, the information of other members may also be exposed, requiring trust in maintaining confidentiality.
From the beginning, our company has consistently provided opportunities for our artists to review settlement details. In fact, there have been artists who have expressed doubts or opinions regarding our settlement details and requested additional explanations, and our company has always provided sufficient explanations on those occasions.
- Claims by the representatives of the 3 artists – Silent regarding requests for confirmation of non-disclosure and intervention by third parties, repeatedly demanding copies – Officially clarifying that there is no third-party intervention to the media, not our company
Due to concerns about third-party intervention being reported through various channels, it is concerning that the representatives of the 3 artists are insisting on requesting copies and even threatening to terminate exclusive contracts, despite having the opportunity to visit our company at any time to review settlement documents and present their opinions.
In response to such concerns, when our company received the request for copies from the 3 artists, we repeatedly sought confirmation regarding whether the 3 artists have entered into dual contracts with third parties that would undermine their new contracts and whether the representatives exclusively represent the 3 artists. However, it is true that the representatives of the 3 artists consistently remained silent on these matters.
Recently, the representatives of the 3 artists have been making statements to the media, emphasizing that there is no third-party intervention in the actions of the 3 artists and that the request for copies of settlement documents is solely the 3 artists’ legitimate right.
Internally, there are growing concerns about whether we can trust the representatives of the 3 artists and whether there is truly no third-party intervention despite numerous reports and circumstances.
- Our decision for EXO – Providing copies of settlement documents to the 3 artists under the premise that they will not be used for improper purposes, with agreement or consent from other EXO members – Doing our best to ensure no disruption to EXO’s activities
However, after careful consideration, our company has decided to provide copies of settlement documents to the 3 artists under the premise that they and their representatives will not use them for any improper purposes other than reviewing the settlement details. Additionally, we have explained the situation to the other EXO members, apart from the 3 artists, and obtained their agreement or consent regarding the provision of settlement document copies.
Through these measures, we hope that our sincere love and care for all the members of EXO and the fans who cherish EXO can be conveyed.
Regarding the issues raised by the 3 artists, various reports have been made about our company, and we are not individually refuting each one with specific details. However, we want to make it clear that the termination of contracts is not solely based on insufficient and unilateral notifications. Furthermore, apart from holding those who provide incorrect advice to the 3 artists or have third-party involvement accountable legally and ethically, we will continue to make our best efforts to consult with the 3 artists whom we value dearly. Our company will do our utmost to ensure that EXO’s activities, which fans are eagerly anticipating, are not affected.