How SM Entertainment CORRUPTLY Maintains Kpop Slave Contract: According to EXO Lawsuit & Jessica’s Novel

SM Entertainment has allegedly continued to impose the Kpop ‘slave contract’ on its artists, using a shocking secret method. After announcing their leaving SM Entertainment and lawsuit, EXO members Chen, Baekhyun, and Xiumin revealed the company’s corrupted approach to continue practicing the inhumane Kpop slave contract. Surprisingly, it was the same method Jessica Jung briefly mentioned in her novel. So, what kind of method did SM use to escape the law? Continue reading for the full discussion.

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EXO Members Lawsuit Revealed SM Entertainment Secretly Maintains the Kpop Slave Contract

Following their lawsuit and plans on leaving SM Entertainment, EXO members Chen, Baekhyun, and Xiumin revealed more shocking facts about the company!

Previously on June 2 KST, the 3 EXO members—famous for their sub-unit EXO CBX—delivered a clear and concise rebuttal against SM Entertainment’s accusations about the reason they’re leaving the company.

There were 5 points of rebuttals the EXO members delivered regarding their lawsuit and reasons for leaving, but one particular point stood out: SM Entertainment has allegedly continued to force its artists into Kpop ‘slave contracts’ using underhanded methods.

EXO members Chen, Baekhyun, and Xiumin are leaving SM Entertainment. | Pinterest

What is Kpop Slave Contract?

Since the beginning of the hallyu wave, the Kpop industry has been famous for its “slave contract”. This term refers to the lengthy and unfair contract between Kpop idols and the management company, which starts when these idols begin their careers as young trainees.

SM Entertainment has been infamous since the early days of Kpop for forcing such unfair ‘slave contract’ on its artists. However, that was until 2009 when 3 members of TVXQ Jaejoong, Yoochun, and Junsu (JYJ) sued the company for this issue.

The company lost the lawsuit at the time. Then, South Korea’s Fair Trade Commission (KFTC) released a new rule in 2010, stating that entertainment’s exclusive contract may only last for 7 years.

The Sneaky and Corrupted Way of SM Entertainment REVEALED: EXO CBX Members are Leaving

Today, even after losing the lawsuit, SM Entertainment still has its sneaky way of maintaining its lengthy unfair contract. And they managed to do it without violating the government’s law of a 7-year period.

When EXO CBX members delivered their rebuttals and reasons for leaving, they revealed the alleged underhanded method SM Entertainment used to maintain its Kpop slave contract.

According to the statement, the contract was officially valid for 5 years. However, a cleverly inserted clause within the contract allowed for an unlimited extension of its term.

“Article 5, Paragraph 1 of the subsequent exclusive contract:
‘This contract is valid for 5 years from [Year XXXX]. However, in case the minimum number of albums stipulated in Article 4, Paragraph 4 fails to release within the same period, the contract period will be automatically extended until the condition is fulfilled.’
There is no limit to how many times this automatic renewal can take effect.
EXO CBX Members’ Lawyer.”

This clause basically means that EXO members must fulfill SM’s requirement for album releases even when their contract expires. If the members fail to release all the albums targeted by SM Entertainment, their contract will automatically extend until they reach the target.

And it does not matter how long it takes.

“Enforcing a contract that is determined by the number of album releases, without limitations to the time span of the contract, clearly falls under the category of a ‘slave contract’.”
EXO CBX Members’ Lawyer.

More Alleged Evidence Surface from Jessica Jung’s Novel Excerpts

Furthermore, the revelation from the EXO CBX lawsuit and the reason the members are leaving SM Entertainment brings up another alleged evidence. And this time, it came from a former SM Entertainment idol, Jessica Jung.

Jessica Jung was a member of SM Entertainment’s 2^nd generation girl group, Girls’ Generation (SNSD). She was removed from the group in 2014 and personally left the company the following year.

In 2020, Jessica Jung published a novel, Shine. Although the book is fiction, Jessica once confirmed in a TIME interview that most of the stories were based on what she had personally experienced when she was an idol.

“Rachel is a reflection of me, of course, because this novel is inspired by my own life.
All of them were based on experience. So, yes, there are many rules and things that people might not understand, but that’s what we had to go through.”
Jessica Jung.

Immediately after EXO members revealed why they were leaving the company, an excerpt from Jessica Jung’s novel surfaced on social media.

The page revealed how the novel’s main character was exposed to how DB Entertainment, her agency, controlled its artists’ careers.

“You think DB doesn’t have a way to get around whatever laws they want?
Somewhere in some bank in Switzerland, in some secure vault, are the 3-year extension contracts DB forced me and the rest of Electric Flower to sign the same day we signed our original contract.
Postdated, of course. That way, everything will hold up in court.”
an Excerpt from Shine by Jessica Jung.

And another time Jessica Jung mentioned about slate contract and how SM blacklisted their former artists #JessicaJung pic.twitter.com/Eji0GyT6uV
— Ri 🎂 418 (@hyori_sunie) June 2, 2023

The Uncanny Similarity to EXO CBX Members Lawsuit and Leaving Reason

Finally, fans cannot believe the uncanny similarity between Jessica’s novel excerpt and EXO CBX members lawsuit and reasons for leaving SM Entertainment.

“Instead of delaying their artists’ comebacks, they ‘delayed’ the release of some artists’ comeback albums in purpose. That way they they could get them to renew their contract.”
“That’s why there were no comebacks. Because SM wanted to extend their artists’ contracts without paying.”
“So…if SM says an artist is never going to release more albums, then their contracts will automatically be renewed forever without any form of pay…”
“Even after losing the JYJ lawsuit, they still figured out creative new methods to continue their ‘slave contracts’.”

Like that is literally slavery making people sign nearly 20 year contracts
— Elle (@Megawarrior345) June 1, 2023

I don’t trust any company btw. Yeah NONE OF THEM. It is sad to see.
— 💫⭐🌟✨ (@Sopeia_) June 1, 2023

and more. not to surprise guys. https://t.co/jhM0OGMB4Y pic.twitter.com/QjmqteYuP1
— #5월의햇살_곽선영_생일축하해 (@mellowsopalette) June 1, 2023

But what do you think about these clues in how SM Entertainment maintained their unfair Kpop slave contract? Please share your thoughts in the comments. And stay with Kpoppost Instagram, Facebook, Twitter, and Telegram channel for more updates.

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