SM Updates on NCT Contract Expiration + Media Highlights Group's Significance in Company
Aside from BLACKPINK, NCT is also one of the biggest groups that is raising concerns about their contract renewal. However, SM Entertainment revealed that no one will leave the company this year, and here's why.
No NCT Member Will Leave SM This Year, Group's Contract Renewal To Be Moved in 2024
Amid concerns about the contract expiration of groups that debuted in 2016, SM Entertainment gave an update about NCT, which just celebrated its 7th anniversary.
According to the Fair Trade Commission's standard on exclusive contracts for pop culture artists (singers), contracts between the company and an artist cannot exceed seven years to prevent unfair long-term contracts.
ALSO READ: 9 K-Pop Groups Whose Contracts Will Expire in 2023
Initially, there were concerns in the entertainment industry especially from NCTzens (fandom) that NCT members' contracts with SM including Taeil, Taeyong, Doyoung, Ten, Jaehyun, and Mark would expire in April.
Meanwhile, Yuta, Winwin, and Haechan will approach their contract expiration in July, whereas Renjun, Jeno, Jaemin, Chenle, and Jisung in August.
On July 17, SM Entertainment officially gave an update about this, saying that NCT's contract period does not expire this year due to overseas activities.
"NCTs decided on the contract period, unlike the usual period, considering military enlistment and overseas activities at the time of the contract.
There are differences among members' contract duration, but no member expires this year. All of them (contracts) will expire after next year (2024)."
This means that although the standard only limits contracts to seven years, a separate agreement can be made for various scenarios, including long-term overseas activities and military enlistment. Thus, NCT's contracts were extended due to the aforementioned factors.
This is the same case as EXO who signed a 10-year contract, not 7 years, in consideration of overseas activities, and the court recognized its effect.
Media Highlights NCT's Significance in SM
Ahead of NCT's contract renewal, media outlets emphasized the aftermath SM will face if the contract process with the members will not go smoothly as planned.
Currently, SM's stock price has been hit by a contract dispute with EXO's CBX (Baekhyun, Xiumin, Chen) following the HYBE and KAKAO acquisition battle in the first half of this year.
In July, its stock price is on the verge of being hampered again as three members of Super Junior including Leeteuk, Donghae, and Kyuhyun have recently decided to leave SM for the first time in 17 years.
Herald Economy then highlighted NCT's huge role in the company right now, saying:
"NCT (Dream) is considered the company's most important pipeline, with more than 4 million pre-orders for its third full-length album ahead of its comeback on the 17th."
In 2022, NCT is also SM's No. 1 boy group with the largest album sales after BTS (HYBE, 6 million) and Stray Kids (JYP, 5.92 million).
The hope is particularly seen from the unit group NCT Dream, who sold 5.68 million copies, which is twice as many albums as YG's flagship girl group BLACKPINK (2.86 million).
Kim Hyun Yong, a researcher at Hyundai Motor Securities also added the anticipation for NCT's upcoming new unit, saying:
"NCT Tokyo will be born through a Japanese broadcast program at the end of this month, and SM is the only one among the four entertainment companies to present an album or tour as early as this year."
READ MORE: NCT Universe LASTART: Concept, Release Date, More About SM's New Boy Group's Audition Show
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Written by Eunice Dawson.
