by REERA YOO
SM Entertainment is going through a rough year.
Following EXO member Kris’ lawsuit, (f)x’s Sulli’s sudden hiatus, and the recent withdrawal of Jessica from Girls’ Generation, another SM artist has filed for a contract termination lawsuit against the K-pop agency.
According to the Seoul Central District Court, EXO’s Chinese member Luhan filed a lawsuit against SM Entertainment on Oct. 10 in a bid to nullify his contract. The paperwork filed is reportedly the same as what his fellow bandmate Kris filed in May. It’s also being reported that Hankyul, the law firm that represented Kris and former Super Junior member Hangeng, will be handling Luhan’s case.
SM recently said in a statement that it was “baffled” by the lawsuit and claimed that they were in midst of discussing Luhan’s future activities after the artist had requested more individual activities in China. The agency added that they suspect a third party to be influencing Kris and Luhan’s actions.
“As it was with Kris’s case, Luhan filed a lawsuit when it was unnecessary, using the same pattern and lawyers after gaining immense popularity with the group, which leads us to believe that he is now prioritizing his own personal benefits while disregarding the understanding of his contract with the agency as well as everyone affected by his contract,” SM said in a statement.
While the specific details of Luhan’s case have yet to be revealed, media outlets are speculating that Luhan’s reasons for the suit are very similar to what Hangeng and Kris cited in the past. Sina, a Chinese media portal, recently revealed four main reasons as to why Luhan has filed termination against his agency:
1. SM Entertainment is unable to provide good future development plans for Luhan.
2. There is alleged discrimination in terms of treatment between Korean and Chinese members.
3. The allocations of resources are unreasonable.
4. Luhan has been experiencing health issues due to over-exhaustion of the body and stress
Rumors about Luhan’s fallout with his label first started circulating when the Chinese member was not present at the EXO concert in Bangkok last month. SM cited health problems as the main reason for his absence at the time, stating that the singer had been suffering from headaches and a sleep disorder. However, fans remained skeptical after Luhan’s consecutive absences from band activities including the SMTOWN concert in Tokyo.
(Photo courtesy of Soompi)
As soon as news of Luhan’s lawsuit became public, SM stocks plummeted down to the daily limit of 15%, resulting in a loss of 64 billion won, the company’s all-time low this year. This steep plunge has allowed YG Entertainment to take the lead in market capitalization, according to Koreaboo. With the recent departures of some of its most popular K-pop artists, SM is expected to see a continuous drop in its stocks, without much time for recovery.
Featured photo courtesy of MTV Vietnam
