Both sides are engaging in intense legal disputes with opposing arguments.
This case raises serious awareness about contract issues within the K-POP industry.
[TV Daily Reporter Kim Ji-ha] The subunit ChenBaekXi from EXO and SM Entertainment faced a significant conflict over the 'oral agreement' during the first hearing of their contract fulfillment lawsuit. On this day, the court held the initial proceedings for the lawsuit initiated by both sides over payment issues, with opposing stances on the existence of the oral agreement. SM defended against ChenBaekXi's claims by citing the lack of charges from police and the prosecution, while ChenBaekXi countered, insisting that the judgment of higher courts is not the sole criterion.
SM's attorney articulated a strong rebuttal, questioning the rationality of ChenBaekXi's claims regarding the oral agreement. Conversely, ChenBaekXi contended that they have consistently been open about the existence of this agreement, asserting that denying an agreement solely based on the absence of a written contract is excessive. Differences in their viewpoints extended to the matter of disclosing settlement documents, where SM criticized ChenBaekXi for demanding extensive documentation despite having already received a substantial payment. In response, ChenBaekXi argued for the necessity of more comprehensive data to substantiate their claims.
The ongoing lawsuit originated in June 2023 when ChenBaekXi notified SM about terminating their exclusive contract, citing insufficient settlement data and an unfairly prolonged contract duration. After filing a complaint with the Fair Trade Commission, SM countered that they had adequately provided settlement information. Initially, both parties reached an agreement but the tensions escalated over time, leading to this legal dispute. ChenBaekXi has now emphasized the failure to ensure promised distribution royalties as a primary issue. The next hearing is scheduled for June 18.
The contract fulfillment lawsuit between ChenBaekXi and SM Entertainment reveals significant issues regarding rights and contractual relations within the K-POP industry. ChenBaekXi raises concerns about revenue settlements, claiming that promises regarding distribution royalties have not been upheld by SM. This indicates a breakdown of trust between artists and labels, which could negatively affect the overall K-POP ecosystem if such disputes continue to arise.
Furthermore, this matter highlights the struggles K-POP artists face when asserting their rights. Even artists adored by millions of fans can find themselves subordinate to the management issues between individuals and corporations. This fact may disappoint fans who realize their idols are not entirely free within rigid contractual frameworks, potentially impacting loyalty in the fandom for the future.
Future court hearings will represent a crucial opportunity for a thorough review of each party's claims, shedding light on contract issues in the K-POP industry. It will be intriguing to observe how legal counsel from both sides addresses the conflict and what solutions may be proposed during this process.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TV Daily
