| Chen, Baekhyun and Xiumin of K-pop boy group EXO / Courtesy of SM Entertainment |
3 EXO members decide to keep their contracts with SM
By Dong Sun-hwa
The three members of K-pop boy group EXO ― Chen, Baekhyun and Xiumin ― and their management company, SM Entertainment, have reached a mutually amicable settlement concerning the trio's exclusive contracts. All three have decided to maintain their contractual relationships.
The announcement came about three weeks after Chen, Baekhyun and Xiumin ― who formed a sub-unit named “EXO-CBX” in 2016 ― demanded contract termination on June 1. They raised concerns about the lack of transparency in financial settlements and the excessively long duration of their contracts, which exceeded the recommended maximum of seven years set by the Fair Trade Commission for singer-label agreements. They also filed a complaint with the antitrust regulator over “unfair” terms.
SM Entertainment swiftly responded to these allegations, denying any coercion on the members to renew their contracts. The company also revealed that the members had attempted to sign double contracts with an undisclosed third party. Local media reports hinted at a potential involvement with the entertainment company Big Planet Made, where rapper MC Mong held an executive director position.
The dispute appeared to be escalating, fueling worries among fans and industry observers, but they revealed Monday that they engaged in a “candid conversation,” which led to a mutually satisfactory outcome.
“We are glad to announce that SM and the three artists have resolved our differences and reached a mutually amicable settlement,” reads the statement jointly released by SM and EXO-CBX. “We will make negotiations and modifications to our contracts and further solidify our relationships.”
The K-pop powerhouse added that it had a “misunderstanding” over the involvement of “a third party.”
“We got a tip-off that a third party with an improper motive was trying to approach our artists,” it said. “But thanks to the recent conversation, we learned that we misunderstood some parts. We are sorry to the people involved.”
SM also extended apologies to the other members of EXO and their fan base for any concerns caused by the dispute.
“The latest incident has led us to contemplate the direction we should go,” it said. “In the future, we will bolster our cooperation with our artists.”
| A teaser for EXO's upcoming album, “Exist” / Courtesy of SM Entertainment |
EXO-CBX and SM Entertainment's recent friction has sent shockwaves through the fan community, particularly because EXO has been preparing for their highly anticipated comeback. It has taken about four years for the act to roll out a studio album following the release of “Obsession” in 2019, as the members had to fulfill their compulsory military service. While SM Entertainment assured fans that the album would proceed as planned, concerns lingered regarding the potential impact on EXO's future career.
Many fans rallied behind the three members, believing that they were fighting for their rights. They also pointed out that it was not the first time that SM has been mired in a legal dispute. In 2010, three members of the label's boy group TVXQ ― Kim Jun-su, Kim Jae-joong and Park Yoo-chun ― quit the act following turmoil with SM over contract conditions, insisting they were the victims of “slave contracts.” Other people, however, sided with SM, saying nobody pushed Baekhyun, Chen and Xiumin to renew their contracts.
EXO fans are now heaving a sigh of relief.
“I am just happy that everything has been resolved,” one of them commented. “I hope it is a blessing in disguise.”
EXO is poised to put out its seventh studio album, “Exist” on July 10. SM unveiled “Let Me In” ― one of the tunes to be included in “Exist” ― on June 12 and it ranked first on iTunes top songs chart in 33 regions including Thailand and Poland upon its release.