SM Entertainment’s Stock Plummets Amidst EXO Baekhyun, Xiumin, and Chen’s Exclusive Contract Dispute

The aftermath of EXO Baekhyun, Xiumin, and Chen’s exclusive contract dispute is causing a sharp drop in SM’s stock price.

As of 3 PM KST on June 1st, SM Entertainment’s stock price is 101,500 won. This represents a 7.38% decrease compared to the previous day’s closing price of 109,700 won.

This decline is believed to be a result of the news of the exclusive contract termination notices from EXO members Chen, Baekhyun, and Xiumin.

Baekhyun, Xiumin, and Chen have informed SM Entertainment of their intention to terminate their exclusive contracts through their attorney. They have raised concerns about settlements and contract periods.

Attorney Lee Jae Hak stated in a statement, “The artists have sent proof of delivery to SM Entertainment seven times from March 21 until recently through their legal representatives. They have repeatedly requested transparent settlement documents and copies of the basis for the settlement, but SM Entertainment has persistently maintained an unjust position of not being able to provide copies of the documents.”

The claim is that the failure to provide settlement documents constitutes a reason for termination of the exclusive contract.

The attorney added, “SM Entertainment has entered into long-term contracts with the artists for more than 12 to 13 years and then, when this period was not enough, forced them to sign subsequent exclusive contracts. The artists feel that SM, based on its dominant position, is forcing them into what can be called slave contracts.“

In response, SM Entertainment stated, “External forces have approached our artists, conveying false information, misleading legal assessments, and making unreasonable proposals that they can disregard the artists’ exclusive contracts with us and enter into contracts with them.” 

Source: insight.