SM Entertainment set to battle EXO’s Baekhyun, Xiumin and Chen, as the trio look to terminate their contracts

There seems to be a battle in the making in the K-Pop world, and it may get uglier before it gets better. Three members of popular group EXO, Baekhyun, Xiumin and Chen (collectively known as the subgroup CBX), alongside their lawyer, have handed in their notice to SM Entertainment regarding the termination of their contracts - but SM Entertainment are not taking the request lightly.

As reported by Soompi, Baekhyun, Xiumin, and Chen delivered their official statement on June 1 through their legal representative and lawyer Lee Jae Hak from law firm LIN, announcing that they informed SM regarding the termination of their existing exclusive contracts as of June 1. Of the litany of issues the trio have with their management company (and it is worth looking at that list, courtesy once again of Soompi), perhaps the most noteworthy comment made regarding their “unjust long-term contracts and attempts to extend them further.”

The trio claim that the length of the contract, which goes beyond the seven years that South Korea’s Fair Trade Commission for the Standard Exclusive Contract Form for Entertainers state is acceptable, had continually had years added to it and that the contractual start upon their “debut” is completely different from what the management deem is their “debut” releasing music. The trio contest that the contract start date should be when they joined SM Entertainment, rather than when they first released music which, as they quite rightly mention, can take months to finally see the light of day.

The trio did apologise to their fanbase, with the end of their statement reading “We apologise for causing great concern to fans through this issue, and there is no way to fully express our apology. Although legal action is inevitable due to a difference in our position with SM, we will do our best to find a wise way to resolve this dispute so that we do not cause fans too much concern.

“As we try to speak up with our small voices regarding the unfairness we couldn’t speak of until now, we are actually very frightened and fearful of this moment right now. We hope that you take interest in what we are saying as well as our difficult courage. We once again sincerely thank our fans who have supported us for a long time.”

SM Entertainment response

SM Entertainment however were not happy with the very public declaration of the desire the three members had to leave both the management company and EXO, who are considered the next “big” K-Pop band to pop the Western Market further given band member Kai’s numerous appearances outside of South Korea.

They issued a statement once the news broke, firstly assuring that an upcoming music video shoot will take place with all the members of EXO, despite a contract termination looming over the company, and then fire back that “outside influences” had caused CBX to leave SM Entertainment. 

Courtesy of All K Pop, the statement reads: “During this important time when we are channelling our efforts into a new phase of SM Entertainment, we have confirmed the presence of outside forces approaching our agency's artists, providing them with false information, false court documents, and irrational offers, such as convincing them that there would be no legal repercussions if the artists chose to sign contracts with other agencies while still bound to SM Entertainment."

"Despite a complete lack of genuine thoughtfulness toward the artists, these outside forces are using groundless rumours, libel and slander, and sweet talk to coerce our artists into violating their exclusive contracts or signing multiple contracts, engaging in clearly illegal activities. Furthermore, these outside forces are not stopping at simply enticing one or two artists into violating their contracts, they are using the artists they have made contact with to tap even more of our agency's artists." 

"We will not stand by idly and watch while forces with no interest in ensuring the future of our artists, or making sure of their fair legal rights, chase after their greed for money; we will pursue all possible legal action. If we do not act now, the tyrannical activities of these outside forces will significantly damage our artists' brand and image, and inflict negative influence on our artists' bright futures."

Which brings us to the third party who also made an announcement…

Big Planet Made response

The alleged “outside forces” were said to be Big Planet Made, another company best known as the home to the trio Viviz, solo artists Soyou, Huh Gak, Ha Sung-woon, Lee Mu-jin, Be'O, Mighty Mouth, Ren and actress Jo Soo-min.

Clearly they did not like the allegations or assumption made, so they too released a statement shortly after SM Entertainment’s allegations: “Hello, this is Big Planet Made Entertainment. We would like to inform you that the information reported regarding our agency today (June 1) is not true.”

“First, Big Planet Made Entertainment has never met with the artists mentioned in the report and has never discussed or shared opinions regarding any exclusive contracts. Second, MC Mong (Shin Dong Hyun) is currently not an executive director of our agency, and he is not given any position or title [in the company] nor is he involved in management at all.”

“Third, we confirm that our agency recently received a certification of contents from SM in the name of their CEO, and we express regret at their intention to link their own internal contract situation with our unrelated agency. If they continue to insist as such, we will take strong legal action.”

So for K-Pop fans and those of us with a curiosity regarding the community, it’s one of those wait and see moments how this is resolved. Needless to say, the past 24 hours for all three parties involved has been nothing short of hectic.