Kpop Scandal: Luhan leaving Exo (+ general SM issues)

As you may or may not know, SM Entertainment is facing a lot of Issues. Here is a short list:

Jan 1st: Yoona & Lee Seunggi confirmed
Jan 3rd: Sooyoung & Jung Kyung Ho confirmed
Feb 14: Data loss of SNSD mr mr MV. Comeback delayed
Mar 13: Jessica & Tyler Kwon rumored, SM denies
Mar 20: SM's tax scandal, SM denies
Apr 14: Tiffany & Nickhun confirmed
May 15: Exo Kris files a lawsuit against SM
June 19: Baekhyun & Taeyeon confirmed
Sep 30: Jessica leaves SNSD
Oct 10: Exo Luhan files a lawsuit

I never wanted to talk about Kris because it was too shocking for me and too sad to talk about, but I'm kind of sick of this now.

After reading tuns of articles this is what I came up with: (allkpop article)

Rumors had been circulating among fans that EXO's Luhan's absence at the pastSMTOWN concert may not all be due to health reasons, and it seems the rumors may be right as reports have come out to reveal that Luhan has filed a suit against SM Entertainment to nullify his contract.

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 has responded to say that they're looking into confirming the situation.

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[Update] - 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.

We've also reached out to our contacts in the industry, who revealed that fan rumors are actually quite on track. The rumors had suggested that Luhan gave SME a specific date to sort this out for he had wanted to avoid a lawsuit. However, it seems the date that SM had to respond by had passed as Luhan has now filed to get out of the contract.

And More 

EXO’s Luhan has reportedly filed a lawsuit against his management agency SM Entertainment to nullify his contract. Chinese news agency Sina broke the news and reported that the EXO-member filed his case against SM Entertainment earlier today, October 10, at Seould District Court. In a different report, Sina enumerated Luhan’s reasons why he wants to nullify his contract with SM Entertainment. The reasons are (as translated in English by blog Koreaboo): SM Entertainment is not able to give good future development plans for Luhan; that there is a discrimination in terms of treatment between Korean and Chinese members; that the allocations of resources are not reasonable; and lastly, Luhan is experiencing health issues due to over-exhaustion in both body and in stress.  Luhan reportedly showed concern over his career saying that SM Entertainment has no solid plans for them and that he felt like a “robot” under the company. Luhan is the second member of EXO who wants to nullify his contract with SM after Kris. According to reports, the lawyer who handled Kris and former Super Junior member Hang Geng’s case against SM Entertainment will also work on Luhan’s case. Read: K-POP NEWS. EXO's Kris files lawsuit against SM Entertainment to nullify his exclusive contract Hours after the issue broke out, Luhan posted a photo message for his fans on his Instagram account. His message reads: "I just wanna all of you to know that I love you all."

You all may think this is the end, but no, all this had big consequences. 

S.M. Entertainment Co. stocks took a beating on Friday, October 10, as news broke that Luhan, a member of the label's popular male idol group, EXO, reportedly filed a lawsuit seeking to terminate his contract.

This latest negative news further eroded the agency's market capitalization value to a point where rival YG Entertainment has now reportedly overtaken it in company size

"Shares of SM - which is listed on the country's Kosdaq stock-exchange for smaller companies - dropped by the daily limit of 15% on the news of the latest lawsuit, hitting a more-than-one-year-low," 

This represented a price drop of 5,450 KRW with the stock closing at 31,200 KRW per share.

Negative market sentiment dragged down the stocks quickly, with Koreaboo reporting that just within fifteen minutes of Luhan's actions being revealed, SM stocks dropped by approximately 3,100 KRW.

The Luhan fiasco is the latest in a string of idol woes that has pummeled SM stocks, beginning in May when Kris, another EXO member and Chinese subgroup EXO-M leader, filed a lawsuit. This plunged SM stocks to roughly 30% below their normal prices, according to Koreaboo.

Then just last month, Girls' Generation member Jessica was allegedly forced out of the company due to conflicts arising from her fashion business.

"Combined with the news of Jessica's departure, this Luhan issue has now set SM 19% below the prices seen at the beginning of last month," says Koreaboo.

With this latest stock price decline, SM finds itself slipping behind rival agency YG Entertainment in market value.

"Just today, SM dropped a total of 5,450 KRW (around 15%) and is now trading at 31,200 KRW (around $29) a share, whereas YG is trading at 49,350 KRW (around $46) a share. Currently on the KOSDAQ market capitalization list, YG ranks at 25 while SM ranks at 32," reports Allkpop.

Market capitalization is used by the investment community to determine a company's size, and is calculated by multiplying the current market price of one share - in this case 31,200 KRW -- by the company's shares outstanding.

You read correctly. SM is slowly dropping down and obviously isn't getting any advantage by all this.

  

Going back to Luhan. I'm so shocked by this news I really didn't imagine it would happen. I actually saw him a bit strange... But Luhan... Who would of thought! A lot of questions are coming in my mind like : What will SM become? What will happen to Exo? What will the members do? Will they always be strong? Are they strong enough? Can they handle it? What will Sehun and Xiumin do? What will FANS do?  SM's not treating their artists right, making them work so hard. Exo will slowly lose all their energy...  Can you imagine now, they have to re do all the choreo and songs from 0, fixing every part because Luhan is gone! They'll have to work even harder! Why isn't anybody doing something? Fans should start thinking of some way to change this if SM won't.  From what I saw a lot of people want Exo to change company. But what if the music they'll do won't be as great as now? What if they completely change type of music? In my opinion THEY shouldn't change but SM should! People should take actions! They can't continue to mistreat artists. In my personal opinion I kind of feel happy for Luhan that he decided to leave because how the articles say he was suffering from illness and couldn't cure himself. I'm not happy for the members of course, but think of him. Now he can take care of himself. The sad thing is that he'll go back to China and will never see his members again, his best friends, his family, brothers. This is really heart breaking for me. 

 

This is what SM said:

  (I don't want this post to be so long so I'm going to split it in different posts.)

Many many fans have different opinions but still have one thing in common, We are EXO-L and it doesn't mean that if they're separated we leave them. The opposite, We support them even more because EXO-L is LOVE! Forever!