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[Alpha Biz=(Chicago) Reporter Paul Lee] SM Entertainment's share price plunged on news of the departure of its singers Baekhyun, Xiumin and Chen.
According to the Korea Exchange on the 1st, SM closed at 100,000 won, down 7.2% from yesterday (May 31).
SM shares rose 3% in the early part of the market, then shifted to a downward trend after 10 a.m. and fell to 7.75% as of 12:55 p.m.
The sharp drop in stock prices is attributed to the fact that Baekhyun, Xiumin and Chen notified SM of the termination of their exclusive contracts.
Their lawyer, Lee Jae-hak, said, "We have asked SM for settlement data seven times from March 21 to recently, but SM finally refused."
"The artists feel that SM is forcing them to sign so-called slave contracts based on their superior status," they claim.
In response, SM said, "An external force has been confirmed to approach the artist and suggest that it is okay to sign a contract with them, ignoring the exclusive contract with the company with false information."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
