EXO Chen, Baekhyun, and Xiumin has hit back at SM Entertainment’s claims.
On June 10th, INB100, the agency representing EXO Chen, Baekhyun, and Xiumin, released an official statement expressing their disappointment with SM Entertainment's repeated accusations of tampering by Chairman Cha Ga Won and CEO Shin Dong Hyun. They challenged SM to clearly define what they consider tampering.
INB100 declared, "We will take strong legal action against SM for defamation and spreading false information, both in civil and criminal courts."
They explained, "EXO Chen, Baekhyun, and Xiumin gave up their exclusive contract fees to continue EXO activities under SM, only managing individual activities through a separate company. They needed a distributor to manage album and music releases separately. SM first demanded 10% of EXO Chen, Baekhyun, and Xiumin’s revenue, then suggested a 5.5% distribution fee with Kakao, which EXO Chen, Baekhyun, and Xiumin accepted. SM made these proposals and is now backing out of their promises."
INB100 also questioned, "SM should clarify what they mean by tampering. Is it tampering when artists seek advice from friends, seniors, juniors, and colleagues? SM shouldn't distort the truth and should give the artists the right to access their accounting data."
Earlier, INB100 held a press conference, stating that "SM Entertainment is demanding 10% of the artists' revenue from individual activities."
SM Entertainment responded, "The exclusive contract with EXO Chen, Baekhyun, and Xiumin is still valid. We allowed them to manage individual activities through a separate company, and EXO Chen, Baekhyun, and Xiumin agreed to pay 10% of the revenue from their separate company."
Below is the full statement from INB100:
EXO Chen, Baekhyun, and Xiumin's Agency, INB100, "SM Should Disclose the Standards and Basis for Tampering… Will Hold Them Accountable for Defamation and False Information"
Chairman Cha Ga Won: "SM Should Cease Awkward Excuses and Submit Accounting Data… We Will Apply for an Injunction If They Fail to Comply"
Chairman Cha Ga Won and CEO Shin Dong Hyun express deep regret over SM's continued allegations of tampering. They demand SM to disclose the standards for tampering.
Furthermore, they assert that they will vigorously respond by holding SM accountable for defamation and spreading false information, both civilly and criminally.
It is now absurd, even bordering on foolish, for SM, a large-scale planning agency, to release statements that obscure the essence through nitpicking and irrelevant claims, forgetting its core responsibilities once again.
SM's attempt to frame EXO Chen, Baekhyun, and Xiumin, former artists under their label, who are currently active under EXO, with the label of tampering is deemed unacceptable as an entertainment planning agency.
EXO Chen, Baekhyun, and Xiumin decided to waive their exclusive contract fees and agreed to continue EXO activities under SM.
However, they only intended to pursue individual activities through a separate company and required a distributor to establish a separate company for the distribution of albums and music. It's worth noting that SM initially demanded 10% of the revenue from EXO Chen, Baekhyun, and Xiumin and later proposed a 5.5% distribution fee with Kakao, which was accepted by EXO Chen, Baekhyun, and Xiumin. It's clear that SM proposed these terms and is now reneging on their promises.
Today, on the occasion of this press conference, we once again demand from SM:
Disclose the standards and basis for tampering. Is it considered tampering when artists seek advice and consult with acquaintances, seniors, juniors, and colleagues?
Baekhyun sought advice from people to establish a personal company. The notion of tampering, as claimed by SM, doesn't hold any water. However, Baekhyun, who initially established a personal company, realized the inability to manage both artist activities and business simultaneously, hence entrusted the latter to trusted professionals while pursuing his dream as an artist and producer.
SM, as a large planning agency, should stop making clumsy attempts to divert from the essence of the matter and engage in groundless arguments and public manipulation.
Forcing obligations onto artists while failing to uphold their own promises exhibits a clear disregard for artists' rights and portrays a history of treating artists merely as sources of revenue.
In their statement today, SM declared, "We do not have the authority to determine Kakao's commission." However, during a conversation between Lee Sung Soo, the representative, and Chairman Cha Ga Won, Lee asserted, "We must give 17% elsewhere. But if we offer 5.5%, there's no difference." This demonstrates the deceptive and exploitative behavior of Lee Sung Soo and SM, who lack the capacity to fulfill such commitments.
Lastly, SM should refrain from distorting the essence of the matter and provide artists with the most basic right, which is access to accounting data.
Before asserting tampering, SM should reflect on whether they have adhered to standard contracts, executed expenditures, and disclosed settlements.
If SM continues to withhold accounting data, we will apply for an injunction in court.
INB100 will spare no effort in protecting the rights of artists.
Stay tuned for more updates on this ongoing dispute!
Source: (1)
