EXO’s Baekhyun, Xiumin, and Chen report SM Entertainment to the Free Trade Commission

This Monday, the 5th, the legal representative of Baekhyun, Xiumin It is Chenmembers of EXOannounced that, last Sunday, a complaint was filed with the Fair Trade Commission against SM Entertainment, accusing the company of “abuse of superior negotiating position”.

During the notification, the lawyer states that, although the agency had already been notified by the Fair Trade Commission in the years 2007 and 2011 to ban unfair contracts, the rectification did not happen, and SM would be “violating the correction order of the Commission Fairtrade”.

Check out the main points of the complaint released by the legal representative of the idols:

“1. Despite the Fairtrade Commission’s resolution to ban [contratos injustos] from SM twice in 2007 and 2011, SM has not rectified [os contratos].

2. Calculating the exclusivity contract period from the ‘entertainment industry debut date’ (instead of the exclusivity contract signing date) leads to an excessively long contract period, which period is determined at the discretion of the agency and already confirmed unfair, but SM is still not following the Fair Trade Commission’s corrective measures.

3. Through the 2007 Fairtrade Commission resolution, SM has already received the judgment that the contract period of ‘5 years from debut date (instead of contract signing date)’ is excessively long , but SM actually signed even more unfair contracts by deciding terms of seven years in the exclusive contract and three years in the attached contract.

4. SM is in violation of the Fairtrade Commission correction order by continuing to use the expedient of an extended contract period indiscriminately for reasons such as overseas activities that were not even confirmed at the time of signing the contract.

5. Subsequent exclusivity contracts that are automatically extended until album release numbers are met are extremely unfair as a minimum period of time has not been set.

6. We file a complaint with the Fairtrade Commission in the hope that our little courage will be useful for the establishment of a fair folk culture [indústria] and for the sake of junior artists”.

Soon after, SM Entertainment also commented on the matter, sharing their decision regarding the accusations. Look!

“Hello, this is SM Entertainment.

Regarding the recent request to provide copies of the liquidation reports of Byun Baek Hyun, Kim Jong Dae and Kim Min Seok (hereinafter referred to as the ‘three artists’), we would like to inform you of the decision we have made after careful consideration.

1. Settlement reports are confidential information that cannot be disclosed to third parties.

– In the case of a group, special attention is required, as it also contains information about other members.

Settlement reports can include various information such as specific activity details for each artist, settlement rate and method, advance payment, etc. This is our agency’s confidential information that should not be exposed to third parties such as competitors. Furthermore, in the case of a group consisting of several members, [o fornecimento de relatórios de liquidação] it is only possible when there is confidence in non-disclosure, as information from other members may be exposed.

First, our agency has consistently provided our artists with opportunities to view the details of the agreement. In fact, there have been artists who have doubts or opinions about the details of their settlements, or have asked for additional explanations, and we’ve explained them thoroughly every time.

2. Complaints from the legal representative of the three artists.

– They remain silent on our non-disclosure agreement requests as if there is no third party involvement and just repeat their request for copies [dos relatórios de liquidação].
– They made it official that there is no third party involvement only for the media and not for us.

In circumstances where third party involvement is being reported [para nós] through various channels, our company is concerned that there is further negative intent from the legal representative of the three artists and their requests for copies, mentioning the termination of contracts, although they have the opportunity to visit us at any time to review settlement reports and present your opinions.

Due to these concerns, when we received the copy request from the three artists, we repeatedly asked [ao representante dos três artistas] confirmation of aspects such as ‘whether the three artists signed a double contract with a third party that may violate our exclusive contract’ and ‘whether they only represent the three artists’. It is also true that the representative of the three artists has always remained silent to our questions.

Recently, the representative of the three artists made it clear to the press, not our agency, that there is no third party involvement in the actions of the three artists or that the request for a copy of the settlement reports is only the legitimate right of the three artists. Internally, many are voicing concerns about whether the three artists’ reps are credible and there is no third-party involvement, despite numerous allegations and circumstances. [desmentidas].

3. The agency’s decision for EXO.

– We decided to provide copies of the settlement reports with the consent and understanding of the EXO members on the premise that the three artists and legal representative will not use them for unfair purposes.
– We will do our best not to interfere with EXO’s activities.

After deliberation, on the premise that we have received confirmation that the three artists and their legal representatives will not use [os relatórios] for any unfair purposes other than verifying the details of the settlement, the agency decided to provide copies of the settlement reports to the three artists. Furthermore, we have explained this situation to the EXO members, in addition to the three artists, and asked for their consent and understanding regarding providing copies of the settlement reports.

Through these measures, the agency hopes to be able to convey our sincere feelings of love and care to all EXO members, as well as fans who value EXO.

On the question raised by the three artists, various reports are emerging about the agency, but we have not refuted them in detail one by one. However, we want to make it clear that contracts are not terminated by giving unilateral notice with insufficient evidence. Furthermore, in addition to holding those who are giving wrong advice to third parties or the three artists legally and morally accountable, we will continue to do our best to reach a mutual agreement with the three artists we hold dear. We will do our best not to hinder EXO’s activities that fans have been waiting for.

Thanks”.