SM Entertainment has released a second statement addressing the lawsuit filed against them by EXO members Chen, Baekhyun and Xiumin.
In their first statement, SM claimed there were ‘external forces’ which were ‘sweet talking’ their artists trying to snatch them away from them. The statement has been met with wide criticism.
After that, SM released a new statement refuting the claims made by the three idols. Here is what they wrote,
Table of Contents
◆ Key Issue 1: Settlement Documents: Chen, Baekhyun and Xiumin “Provide Copies” vs. SM “Available for Viewing”
Firstly, SM stated, “The artists’ claim that settlement documents were not properly provided is entirely false.” SM explained, “We conducted settlements twice a year before the revision of the Act on the Development of the Public Culture and Arts Industry, and monthly settlements after the revision.” Regarding settlement documents, SM stated that they cooperated by allowing the artists to visit the company at any time for verification and providing separate information on expenditure each time the artists visited.
However, SM explained that they only allowed viewing of the documents without providing copies due to recent reports of external forces approaching Chen, Baekhyun and Xiumin. They suspected that there may have been incitement by external forces with unjust intentions behind their demand for copies of the settlement documents.
SM allowed Chen, Baekhyun and Xiuminto review the settlement documents accompanied by accountants and other professionals, and requested a commitment not to disclose the documents to external parties. SM’s reluctance to provide copies was because “if various specific activity details, which are the basis for settlement, flow to external forces, it could cause unfair harm to other EXO members, excluding the three artists.”
In response, SM requested confirmation from Chen, Baekhyun and Xiumin regarding the existence of dual contracts with external forces, but Chen, Baekhyun and Xiumin did not respond and SM alleges they immediately sent a formal notification to terminate their exclusive contracts.
◆ Key Issue 2: Slave Contracts: Chen, Baekhyun and Xiumin “Exploitative Use of Dominant Position” vs. SM “Legitimacy Acknowledged by the Supreme Court”
Regarding the issue of the duration of their exclusive contracts, SM stated, “We faithfully adhere to the standard exclusive contract templates recommended and established by the Fair Trade Commission and the Ministry of Culture, Sports and Tourism.” They also explained that the validity and legitimacy of the contract period had been acknowledged by the Supreme Court.
SM emphasized that there was no coercion involved in the process of re-signing the contracts. They mentioned examples such as Girls’ Generation members who left the company, f(x), and TVXQ, who had signed multiple re-contracts, to support their claim.
SM also mentioned the re-contracting process with the seven members at the end of last year. They explained that over a discussion period of nearly one year and six months, the members, along with prominent law firms they appointed, engaged in consultations and reconciled their opinions.
Especially, SM stated, “From mid-November 2022 to about a month, we exchanged revised drafts with the members’ representatives in a total of eight instances, and even meticulously discussed each and every word of the clauses in the exclusive contract. Despite such circumstances, the newly appointed representatives of the artists suddenly changed their stance and claimed that the new exclusive contract is not valid.”
◆ Key Issue 3: External Forces: MC Mong and Big Planet Made?
In the midst of this, SM suspected that the external force involved was Big Planet Made Entertainment, where MC Mong served as an internal director. The company currently houses artists such as Choi Yoojung, Ha Sungwoon, Lee Moojin, and VIVIZ. SM accused them of recently inducing MC Mong to meet with Chen, Baekhyun and Xiumin and sign contracts with them.
Big Planet Made Entertainment strongly refuted SM’s claims. They stated, “It is true that we received a certification of contents from SM under the name of our CEO, but we have never met EXO’s Chen, Baekhyun, or Xiumin, nor have we had any discussions or shared opinions regarding exclusive contracts.” They expressed regret and added, “We are disappointed by the intention of associating unrelated internal contract situations of other entertainment companies with our company, and if such claims continue, we will take strong legal action.”
Furthermore, Big Planet Made Entertainment clarified that MC Mong is currently not serving as their internal director and has no involvement whatsoever in their operations or positions.
EXO recently announced a full-group comeback, but member Kai suddenly began his military service, and with the contract disputes of Chen, Baekhyun, and Xiumin, the comeback has become uncertain. However, SM has also issued another statement claiming the group’s filming for their comeback will proceed as normal despite everything that is currently happening.
Source: (A)
