"All artists have received their payments under the belief that a record of earnings and balances can be requested at any time for numerous years in the past, without any problems. During the members' contract renewal season, while carrying out fair negotiations as artist and agency on equal footing, Baekhyun, Xiumin, and Chen chose to renew their contracts of their free will. The issue of payments and earnings did not arise during the renewal discussion period.
however, instead of a response to this request, Baekhyun, Xiumin, and Chen's legal representative took action by filing for the termination of the members' exclusive contracts, the company explained. Furthermore, SM Entertainment argued that the label is closely following existing regulations surrounding exclusive contracts in the entertainment industry, refuting earlier claims by Baekhyun, Xiumin, and Chen that they were not given opportunities to seek other options. SM Entertainment said,have gone on to sign contracts with different agencies.