Actions against each other between the lawyers of EXO-CBX (Chen, Baekhyun, and Xiumin) and management of SM Entertainment are still going on. This is after June 1, 2023 and Chen, Baekhyun, and Xiumin decided to terminate their exclusive contract with management. In his official statement, lawyer Lee Jae Hak explained that SM Entertainment refused to be transparent with his client.
When EXO-CBX asked to be shown their financial statements and payment data, management refused to grant it. SM Entertainment allows them to 'view' the data without 'owning' a copy. The lawyer assessed that there was fear on the part of management that the data would be shared with third parties. This was considered by Lee Jae Hak to be very confusing.
Furthermore, what was done by the management of the EXO group violated the exclusive contracts of Chen, Baekhyun and Xiumin. As explained by Lee Jae Hak in his official statement. "According to their exclusive contract, payment reports must be PROVIDED by SM Entertainment, so just SHOWING them cannot be said that management obligations have been fulfilled," explained Lee Jae Hak.
"SM Entertainment claims that the article containing SHOW the payment report can already be considered as carrying out their obligations. However, based on the exclusive contract it is written that the management will PROVIDE the payment report. Paragraph 14 paragraph 5 of the exclusive contract that SM Entertainment signed with EXO-CBX contains: 'Together with every payment report, SM Entertainment must provide a report to the artists.
Artists can appeal within 30 days after the date the report is received if there is a miscalculation (more or less), and SM Entertainment must publicly provide the report'. Therefore, the data must be PROVIDED and not only allowed to be VIEWED, and the 30 day deadline for the appeal is calculated after the data is RECEIVED, not calculated from the time the data is VIEWED, "said Lee Jae Hak again.
Lawyers for Chen, Baekhyun, and Xiumin also explained that in 2014, SM and the three had entered into an "additional agreement" which contained: SM will provide detailed data regarding payments every year in June and artists can request explanations regarding these payment data from SM Entertainment. The EXO-CBX questioned how SM Entertainment was not very open in providing payment data. So it is difficult for artists to review the data.
What SM Entertainment did was considered very burdensome and cornered their artists. Even though it is clear that there are laws and regulations regarding standard exclusive contracts for artists which state that if the artist requests payment details from management, management must provide these data along with the fee. Guided by this regulation, payment data should indeed be provided for (the copy) owned by the artist, not just for viewing.
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