With both Luhan and SM Entertainment not providing so much information about the matter, fans remain waiting for updates that will shed more light on the current controversy.
In article by Allkpop, it discussed several insights from insiders in the Korean entertainment industry.
One of the sources revealed that the conflict between Luhan and SM arise from the distribution of revenue, citing there are any members dividing the revenue. The same source mentioned that Luhan would be better off promoting in China, in which the artist has a huge following.
"Considering his level of recognition right now, he can promote in China with an even better environment and conditions, so he's trying to leave even if he needs to file a lawsuit," said Allkpop's source.
Another insider said that the music agencies' current revenue system margin is lower than expected. The same source also gave an idea of how money could be distributed between an artist and their agency.
"The contracts that reflect the fair clause will split the profit 6:4 (60% to company 40% to artist) for about 3 years, and then afterwards it will be adjusted to 5:5. The Fair Trade Commission also found this to be the most reasonable after conducting a research on actual conditions," said the source.
From what it seems, the insider meant if artists stick around for the duration of their contract, especially for at least three years after their debut, they will be able to start receiving higher income as the talent label also starts to get back their investment.
The source believes this might be the reason some young idols make rushed decisions early on into their contracts.
However, aside from conflict between Luhan and SM, the latter seems to be looking at another angle. In the official statement of the agency released after the news about Luhan's lawsuit filing broke, SM mentioned "We believe there is someone behind the scenes who is pulling the strings."
This was followed by rumors that EXO' remaining Chinese members Lay and Tao might as well leave the agency, sign with a Chinese media company, and reunite with Kris and Luhan to form a new group.
This was quickly linked to reports that Kris, who left the group in May, is on the verge of signing on Chinese agency Hwai Brothers.
Meanwhile, neither Luhan nor SM has released further official statements on the matter.
Join the Conversation