EXO Mengakhiri Kontrak Eksklusif dengan SM Entertainment: Berjuang untuk Keadilan dalam Industri Hiburan

2. Previously, regarding the 13-year contract period, which includes the extended period from the provisional injunction decision at TVXQ’s case, SM received the judgment that it is an excessively long-term exclusive contract that is unilateral in structure and that it is a contract that excessively infringes on the economic freedom and basic rights of the applicants (TVXQ members) by imposing excessive quid pro quo (benefit in return) or an unreasonable burden on them, exercising unfair control using their superior position. As it is a legal act that violates good moral and other social order, it was judged that there is considerable room to consider that all or part of the contents of the contract are invalid or that its validity has expired due to the expiration of the reasonable duration (refer to the Seoul Central District Court order from 2009KaHap2869 on October 27, 2009). In addition, in the case of provisional injunction in the above case, the court once again pointed out that it is very difficult for idol stars such as the applicants (TVXQ members) who have teenagers as their main fanbase to maintain their existing popularity in the same field until or after they are in their 30s. Thus the exclusive contracts with unreasonably long contract periods deprive the artists of the opportunity to acquire appropriate compensation for their exceptional talent and constant efforts they put in to succeed in the entertainment industry, and in fact, they may perform the same function as lifelong contracts (refer to the Seoul Central District Court order from 2010KaHap1245 on February 15, 2011).

3. The existing exclusive contracts have contract validity periods that severely bind personal rights for a long period of time, which is applicable to “making transactions with the other party to the transaction by unfairly taking advantage of the bargaining position of the business entity itself” from Article 45 Paragraph 1 (6) of the Monopoly Regulation And Fair Trade Act. In addition, according to the types of unfair trade practices from Table 2 of this act’s decree, enforcement of a long time period like this applies to “coercive provision of benefits” or “provision of disadvantages.”

4. Moreover, SM made the artists sign exclusive contracts for seven years based on their debut date and an extension of additional three years in the case [they do] overseas activities. However, in the case of K-pop artists, it takes at least a few months and up to several years to debut after signing an exclusive contract, and overseas activities are presupposed. Furthermore, even though Xiumin and Chen are the members who [SM] planned from the start to be active in China, they were forced from the beginning to sign long-term contracts which span over 10 years or more from the date of their exclusive contracts.

5. Meanwhile, as if a 12 to 13-year-long contract period is not enough for them, SM is trying to claim a contract period of at least 17 to 18 years by having the artists sign the subsequent exclusive contracts again. This is SM repeatedly perpetrating extremely unjust use of power against their artists.

6. In the process of sealing the subsequent exclusive contracts, the artists were unable to negotiate properly, and it was difficult to reflect their wishes or set the terms of the contract on equal footing. Even in the case of the provisional disposition for TVXQ, the court determined that the applicants (TVXQ members) only passively signed a fixed exclusive contract presented by SM, and they were not involved in determining the contents of the contract through negotiations with SM. In the case that an agreement was not drawn between the applicants (TVXQ members), it should have been possible to stop existing negotiations and start negotiations with entertainment agencies other than SM, but no choices were guaranteed, and therefore, no negotiations in the true sense of the word could occur between the applicants (TVXQ members) and SM. Even if there was an annex agreement after the applicants (TVXQ members) became established as celebrities, as applicants who were already bound to the pre-existing contract, they could not link their elevated status to strengthening their negotiating power. It was determined by the court that subsequent contracts are unfairly signed contracts with defects due to the difference in bargaining power (refer to the Seoul Central District Court order from 2010KaHap1245 on February 15, 2011).

7. Furthermore, regarding the act of signing a subsequent exclusive contract, we criticize that it falls under Article 45 Paragraph 1 (6) of the Monopoly Regulation and Fair Trade Act under “making transactions with the other party to the transaction by unfairly taking advantage of the bargaining position of the business entity itself.” Compulsory long-term periods such as this using subsequent exclusive contracts applies separately to the “coercive provision of benefits” or “provision of disadvantages” of attachment 2 of Table 2 of the act’s decree.

8. Furthermore, we are aware that long-term exclusive contracts such as these are the similar cases for the majority of SM artists and not only just Baekhyun, Xiumin, and Chen.

9. Regarding the act of signing a long-term existing exclusive contract as well as a subsequent exclusive contract, Baekhyun, Xiumin, and Chen are sincerely considering filing a complaint to the Korea Fair Trade Commission.

3. Words to fans

1. We apologize for causing great concern to fans through this issue, and there is no way to fully express our apology.

2. 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.

3. 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.

4. 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.

Dalam pernyataan ini, Baekhyun, Xiumin, dan Chen menegaskan posisi mereka mengenai berbagai isu yang mereka hadapi selama berkontrak dengan SM Entertainment. Salah satu isu utama yang mereka angkat adalah masalah transparansi laporan keuangan dan pelanggaran atas peraturan industri hiburan.

Para artis ini merasa bahwa mereka memiliki hak yang sah untuk meminta laporan keuangan yang akurat dan transparan dari SM Entertainment selama masa berkontrak, namun perusahaan tersebut menolak memberikan salinan laporan-laporan tersebut. Ini bertentangan dengan kontrak eksklusif yang ada dan Undang-Undang Pengembangan Industri Budaya dan Seni Populer. Akibatnya, para artis merasa bahwa mereka telah dipaksa untuk menandatangani kontrak 'budak' yang berlangsung hingga hampir 20 tahun, termasuk masa latihan mereka yang tidak singkat.