Exo members Chen, Baekhyun and Xiumin. Photo: OXO
Exo members Chen, Baekhyun and Xiumin. Photo: OXO
Exo members Chen, Baekhyun and Xiumin. Photo: OXO
Exo members Chen, Baekhyun and Xiumin. Photo: OXO

Why are Exo members Baekhyun, Chen and Xiumin suing SM Entertainment?


Evelyn Lau
  • English
  • Arabic

Three members of the popular K-pop boy band Exo have taken their label SM Entertainment to court, claiming there are discrepancies in payments and that they were forced to sign “slave” contracts.

Baekhyun, Chen and Xiumin accuse SM of lacking transparency over payment and demanding unreasonably long contracts that extend past 12 years, while the industry standard is seven years.

“While signing a long-time deal of 12 to 13 years with its artists, SM made its artists sign another exclusive contract for when the initial contract term comes to its end, leading to prolonged terms of at least 17 to 18 years,” lawyer Lee Jae-hak, of South Korean firm Lin, told The Korean Herald.

This isn’t the first time that SM has been involved in legal disputes. Here's what to know about the problematic contractual agreements that continually plague the music industry in South Korea.

What are 'slave' contracts in K-pop?

“Slave” contracts is a term commonly used to describe any unfair and long-term contract between aspiring Korean artists and their management agencies.

To become a K-pop idol, years of training are needed. Some trainees start off as young as 12 or 13 and need to be trained in areas such as singing, dancing and learning how to speak other languages before making their debuts. However, training is not free and trainees can get into debt with their agencies during the process.

This means they need to pay back what is owed, which in turn comes from what they earn as musicians after entering the K-pop world. It can take a while to break even, and some agencies say that is why they have such long contracts in place.

What SM Entertainment says

On Thursday, the agency released an official statement in response to the allegations by the three Exo members.

It said there were external influences and the band was being poached by another company.

“We have discovered that these outside forces are not only luring the artists to breach the valid exclusive contracts they have signed with the company, but using them to get through to other artists to also violate the contract terms or sign double-contracts,” SM said.

“We will take legal action against these people who pursue only their greed and profit without any profound interest in the future or the rights of the artists.”

What has happened in the past with such agreements?

This isn’t the first time that artists under SM have sued to be released from their contracts. In 2009, three of the five original members of the boy band TVXQ! asked the courts in South Korea to examine their 13-year contract.

Members Jaejoong, Yoochun and Junsu argued the deal was not only too long and restrictive, but also left them with almost no profits despite their success.

A South Korean court ruled in their favour and an injunction suspended their SM contracts.

In the meantime, Jaejoong, Yoochun and Junsu formed their own group called JYJ in 2010. They were eventually able to terminate their SM contracts after a deal was reached in 2012.

Former Exo members Kris Wu and Luhan filed lawsuits in 2014, claiming their contracts were unfair.

The pair were forced to settle in 2016, which allowed them to no longer be members of the group to pursuit solo activities, although their contracts with SM remained intact until 2022.

Tao, also a former member of Exo, similarly filed his own lawsuit in 2015, claiming the company had mistreated him, in addition to treating Chinese members of the group differently from the Korean ones.

During his legal battle, he was counter-sued by SM and lost when it was found that he did not pay back an amount owed to the agency within the promised timeline. Like Wu and Luhan, Tao also eventually reached a deal that allowed him to leave Exo, although his contract with SM also remained valid until 2022.

What has been done to protect musicians?

In 2010, South Korea’s Fair Trade Commission issued a rule that limited entertainment contracts to seven years. However, in 2017, more restrictions were added such as reducing the financial penalty for trainees who wanted to break their contracts or leave the industry, as well as making it more difficult for companies to force K-pop stars to renew their contracts especially long-term ones.

Is Exo breaking up?

Exo is one of Korean's biggest boy bands. Photo: SM Entertainment
Exo is one of Korean's biggest boy bands. Photo: SM Entertainment

Exo is one of South Korea's biggest K-pop bands and often viewed as a rival to BTS.

The band's song Power was one of the first from a K-pop group to be played at the Dubai Fountain

The group has won five consecutive Album of the Year awards at the Mnet Asian Music Awards and two consecutive Artist of the Year awards at the Melon Music Awards.

Mandatory military service and contractual disagreements have slowed down their comeback, which was supposed to take place this year. However, it seems Baekhyun, Chen and Xiumin still want to work it out.

“We are looking for ways for the artists to remain in Exo despite terminating their contracts,” said the group's laywer Lee.

“Even before terminating their contract, during negotiations with SM, the idols had offered a partnership that would allow them to take part in Exo activities.

“Apart from the legal dispute with SM Entertainment, the artists are immensely grateful for the love fans have given them. In the future, no matter how the legal dispute is resolved, the artists will carry out Exo activities faithfully.”

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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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Director: Lana Wachowski

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Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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SANCTIONED
  • Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
  • Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB. 
  • Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.  
  • Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
  • Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
Haircare resolutions 2021

From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.

1. 'I will seek consultation from professionals'

You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.

2. 'I will tell my hairdresser when I’m not happy'

Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.

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Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.

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The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Champions parade (UAE timings)

7pm Gates open

8pm Deansgate stage showing starts

9pm Parade starts at Manchester Cathedral

9.45pm Parade ends at Peter Street

10pm City players on stage

11pm event ends

The Florida Project

Director: Sean Baker

Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe

Four stars

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

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Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

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Padmaavat

Director: Sanjay Leela Bhansali

Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh

3.5/5

MATCH INFO

Uefa Champions League semi-final, second leg result:

Ajax 2-3 Tottenham

Tottenham advance on away goals rule after tie ends 3-3 on aggregate

Final: June 1, Madrid

UAE currency: the story behind the money in your pockets
The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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UAE currency: the story behind the money in your pockets
Updated: June 04, 2023, 1:52 PM