EXO's Chen, Baekhyun, Xiumin settle legal dispute with SM Entertainment
It appears that the issues between EXO members Chen, Baekhyun, and Xiumin and their agency, SM Entertainment have been resolved, as they have decided to renew their contracts. This decision comes after the three artists previously terminated their contracts with SME and filed a lawsuit, citing claims of slave contracts and discrepancies in payment. SME, on Monday, announced both parties had reached an agreement.
Why does this story matter?
SME has been accused of imposing lengthy contracts that allegedly span 12 to 13 years, and some reports suggest that the company is now demanding even longer contract renewals, extending up to 17 to 18 years. Before Baekhyun, Chen, and Xiumin—who form the sub-unit CBX—raised their voices, former EXO members Luhan, Tao, and Kris Wu filed for contract termination, citing similar concerns in 2014-15.
SME claimed that the differences were caused by misunderstandings
SME, in a new statement, announced that the three artists will continue their contracts with the agency. The statement read, "We and the three artists had enough time to discuss all of our issues carefully. Through this, we are happy to inform you that we have been able to resolve all differences caused by many misunderstandings, and we have reached a mutually decided agreement."
Take a look at the settlement post
What exactly happened before?
The legal dispute began on June 1 when CBX announced the termination of its contract with SME. In a statement released by CBX's legal representative, various issues were cited as reasons for their decision, including extended contract durations, and concerns about pay discrepancies. Subsequently, SME issued an official statement claiming that there were "external influences and the band was being poached by another company."
What are 'slave' contracts in K-pop?
"Slave contracts" can be described as "unfair and excessively long-term contracts with aspiring Korean artists." Becoming a K-pop idol requires years of training, which is not provided for free, and trainees are required to pay back to their agencies once they debut in the industry. It can take a considerable amount of time to reimburse, which is why agencies often impose lengthy contract durations.
When former EXO member Tao was counter-sued by SME
As previously mentioned, former EXO members filed lawsuits alleging that their contracts were unfair. Tao, in particular, initiated his lawsuit in 2015, citing mistreatment by SME, alongside alleging different treatment between Chinese and Korean members. During the legal proceedings, SME counter-sued Tao when it was discovered that he had not fully compensated a repayment obligation to the agency within the promised timeline.
