Earlier on June 2 KST, EXO members Baekhyun, Xiumin, and Chen delivered a second statement regarding their ongoing legal dispute against SM Entertainment through their legal representative, Law Firm LIN.

The lengthy statement, comprised of 5 sections, addressed matters such as additional details on the disagreement over documents recording the artists' earnings and payments, the alleged "slave contract" violating existing regulations on exclusive contracts in the entertainment industry, as well as the wishes of the three EXO members to continue their group activities regardless of the outcome of the legal dispute. 

After coming across the full statement by Law Firm LIN, many K-netizens pointed to one particular section of the statement as "the most shocking". 

The section dealt with SM Entertainment's alleged method of coercing its artists to renew their exclusive contracts, allowing the agency to "exercise its authority and status to acquire unlawful business deals". According to Law Firm LIN:

"Clause 5, article 1 of the follow-up exclusive contract, which SM Entertainment presented to its artists with approximately 1 year still remaining in the currently active contract, states that 'This contract is effective for the next 5 years starting from [Year X]. However, during this time frame, should the artist fail to release the number of albums agreed to in clause 4, article 4 of this contract, than the contract will renew automatically until the album release requirements are met. There is no limit to how many times this automatic renewal can take effect.

Enforcing a contract that is determined by the number of album releases, without limitations to the time span of the contract, clearly falls under the category of a 'slave contract'. With approximately a year still left in the artists' contracts, SM Entertainment has attempted to tie down its artists through premature renewal deals which cannot be considered lawful. SM Entertainment made no payment offers for contracts extended through this method, either."

In summary, Baekhyun, Xiumin, and Chen's side is claiming that SM Entertainment exploited its authority and status as the side responsible for producing and distributing the albums of its artists, thereby turning a "specifc number of album releases" in a set time frame into a means for obtaining contract renewals.

Some netizens commented,

"I'm suspecting that instead 'delaying' their artists' comebacks for other reasons, they purposely delayed the release of some artists' comeback albums so they could get them to renew."

"So that's why there were no comebacks. Because SM wanted to extend the artists' contracts without paying them." 

"This is SM 3.0..??"

"Now I can't help but suspect that all other SM artists have similar contracts."

"Even after losing the lawsuit against JYJ, they figured out creative new ways to continue their 'slave contracts'."

"So if SM decides an artist is never going to release any more albums, then their contracts will automatically be renewed forever without any form of pay..."

"Anyone can tell that this is illegal. The company has the power and the resources to produce and distribute the albums of their artists, so the number of albums released in a certain time period is entirely outside of the artists' control."

"What a crazy company."

"Those SM employees are literally crooks."

"I knew SM was twisted but this is way more f***ed up than I imagined."