S.M's Artist Contract Terms
"According to the contract, the creditor cannot sign the activity contract or agreement without permission. The production of albums, television appearances, performances, and the process of preparing for them, including all performing arts activities, are subject to the execution of the business at the behest of the debtor (s.m.). The debtor company has full authority to manage the creditor's schedule, and the creditor is obliged to carry out the performances arranged by the debtor company and to appear in television programs, provided that there is no time limit on working hours. The debtor company cannot let the creditor do performing arts activities for other companies, and the creditor cannot let a third party execute the debtor's instructions on his behalf. There is no basic remuneration and fixed remuneration, and creditors receive an appropriate proportion of the proceeds from their own performing arts activities. ”
From the above clauses, it can be seen that there are indeed many so-called overlord clauses in the contract of S.M. Company. Moreover, the term of the exclusive contract signed with TVXQ and the previous one is 13 years. This is more than 10 years longer than the maximum term of an employment contract or labor contract (the legal limit for a labor contract is 3 years (Article 659 of the Civil Code) or one year (Article 16 of the Labor Standards Act)).
However, 11 years later, with the intervention of the Justice Commission, the Seoul Central Law Enforcement and other agencies, as well as the restrictions of national laws, S.M has successively improved the treatment of its artists and re-signed new artist contracts that comply with the current new law.