Luhan Is Leaving EXO And SM Entertainment, Deja Vu All Over Again

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Remember when SM Entertainment had its shit together, at least relative to pretty much every other K-Pop label outside of, maybe, YG?

Yeah, that time seems like its over.

Luhan is seeking to leave EXO and SM Entertainment in pretty much the same fashion which Kris did earlier this year.

He’s even hired the same lawyers that Kris used in his spat with SM.

Many sources are indicating that Luhan has submitted his lawsuit at the Seoul Central Court this morning (10th KST). TVDaily also released a copy of the alleged application in which  the name ‘Lu Han’ can be seen.

The type of lawsuit he has filed, which is to determine that the contract is not valid and to nullify it, is the same one filed by former member Kris.

It’s being reported that the same law firm that handled Kris’s case is also taking on Luhan’s.

SM Entertainment confirmed (in a completely salty tone) that Luhan did file a suit seeking to nullify his contract:

The agency learned of Luhan’s lawsuit through a lawyer.


We are shocked because the lawsuit was suddenly filed while we were in the process of negotiating his future schedules and activities after he expressed his wishes to focus more on his individual activities in China more so than EXO group activities as well as matters concerning his health. 


As it was with Kris’s case, when a lawsuit is filed for no actual reason by using the same pattern and lawyers after a gaining a lot of popularity as a star through group activities, we see this as a suit that was filed because of one prioritizing one’s self and ignoring the understanding of the contract with the agency as well as everyone involved in the contract and the activities with the group. We believe there is someone behind the scenes who is pulling the strings.


Regarding these kinds of situations, the agency plans to actively respond to them with our partners overseas including those in China as well as legal experts.


EXO’s future activities will also proceed on as scheduled.

Yes, SM Entertainment is saying that there’s some sort of nefarious Chinese-Triad-Communist conspiracy pulling strings to bring down the might of EXO.

As for the reason behind Luhan’s exit from the group, there’s nothing confirmed yet but some reported reasons include homesickness, health and a belief that the monetary allocation is unfair within the group.

In all, this hasn’t been the best of times for the (usually boringly competent) SM Entertainment. EXO is supposed to be the label’s bridge from Super Junior and SNSD to a younger generation of idols but in order for that to happen, they’ll have to at least project an image of having their house in order. Much like with Kris’s and Jessica’s clusterfucks, SM saw their stock drop following Luhan’s suit:

SM’s stocks have taken a dip as it dropped 3,100 KRW within 15 minutes of this news being revealed. For a month after Kris’s lawsuit was revealed, SM’s stocks had hovered about 30% below their normal. Combined with Jessica’s news, this Luhan issue has now set SM 19% below what its price had been at the beginning of last month.

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3 comments

  1. Apparently the remaining Chinese members might be leaving soon. Can’t imagine Victoria will stick around for the next contract renewal.

    Red Velvet flopped on their first song, curious if the remake they just put out makes money…

  2. I saw yesterday that after the news on Luhan came out, SM’s stock dropped enough that YG for the first time had a higher market capitalization than SM for the first time ever. I don’t know what the shareholder structure is at SM and whether the founder and his family still have over 50% of the stock, but in the US several mistakes like this would likely cost the CEO his job as the board would come under immense pressure to shake-up management from shareholders as clearly management is either incompetent, unmotivated, or ineffective. Clearly something has gone very wrong over the last year or so. I wonder if they have had some long-time middle managers and executives leave now that the son of the founder is running the show. I think I had read that the current CEO is the founder’s son, and sometimes the son is just not an effective manager and the parent will sometimes have a blind spot to their kid’s flaws and typically no manager beneath them will take them on or go over their head to the founder as you can’t beat family typically especially if that family has controlling interest of the company still.

    Though if this is the son that has had this very bad year, his familial ties might not protect him as even other family members are not going to like seeing their stock price tank and realize that is this continues the company could eventually go under as other artists leave and the quality of trainees declines as the place gets a reputation for being incompetent and not the place to go.

    I wouldn’t write SM off as they still have a very good revenue stream with their main acts that should allow them to recover from this, but they likely need a management shake-up and need upper management.

  3. Well, I wouldn’t rush to attribute this and other recent incidents entirely to the mismanagement of SM. Rather, I’d like to think that these are signs of maturing for an industry that’s notorious for ‘slave contracts’.
    It also strikes me that idols who attempt to challenge the establishment often are either not born and/or bred in Korea. Maybe there are some questionable industrial practices that home-grown talents are more accepting of, as being just how things are done.
    Life goes on.

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