EXO’s Baekhyun, Chen, and Xiumin and SM Entertainment have settled their exclusive contract dispute. All three will keep their contracts.
Three weeks after Baekhyun, Chen, and Xiumin—who founded “EXO-CBX” in 2016—demanded contract termination on June 1, the news was made.
They complained about financial settlement transparency and their contracts’ length, which exceeded the Fair Trade Commission’s seven-year limit for singer-label relationships. The antitrust regulator received their “unfair” conditions complaint.
These charges were denied by SM Entertainment. The firm also reported that members sought to sign multiple contracts with an unnamed third party. Local media suggested a connection to Big Planet Made, where rapper MC Mong was executive director.
Fans and industry observers worried that the conflict was worsening, but they stated Monday that they had a “candid conversation” that resolved it.
“We are glad to announce that SM and the three artists have resolved our differences and reached a mutually amicable settlement,” SM and EXO-CBX said. We’ll revise our contracts and strengthen our bonds.
The K-pop giant claimed a “misunderstanding” over “a third party.”
“We got a tip-off that a third party with an improper motive was trying to approach our artists,” it added. The current talk revealed that we misinterpreted several things. We apologize.”
SM apologized to EXO members and fans for the issue.
“The latest incident has led us to contemplate the direction we should go,” it stated. “We’ll work more with artists.”
Due to EXO’s highly anticipated comeback, EXO-CBX and SM Entertainment’s recent conflict has shocked fans. After “Obsession” in 2019, the band took four years to release a studio album due to mandatory military duty. SM Entertainment told fans that the album will go on, but fans worried about EXO’s career.
The three members’ supporters believed they were defending their rights. They also noted that SM has been in court before.
Three members of SM’s boy band TVXQ, Kim Jun-su, Kim Jae-joong, and Park Yoo-chun, resigned in 2010 after a dispute over contract terms, claiming they were victims of “slave contracts.” Others supported SM, stating nobody forced Baekhyun, Chen, and Xiumin to extend their contracts.
EXO fans are relieved.
“I am just happy that everything has been resolved,” one said. “I hope it is a blessing in disguise.”
EXO will release “Exist” on July 10. On June 12, SM released “Let Me In,” one of “Exist’s” tracks, which topped iTunes’ top songs chart in 33 countries, including Thailand and Poland.