Chen, Baekhyun and Xiumin of boy band EXO are staying at SM Entertainment after resolving their "misunderstandings" with the K-pop label over their contracts, according to reports.

This comes weeks after the three stars announced that they would terminate their exclusive contracts with the agency, which they accused of imposing "unfairly long-term" contracts and unclear handling of earnings.

On Monday, SM Entertainment and the trio issued a joint statement, saying the artists would remain in the company, according to a report by K-pop news portal Soompi.

"The agency listened attentively and understood all the thoughts of the three artists, and the agency also conveyed our position regarding this in detail. The three artists also opened up their hearts, and they understood our stance regarding artist contracts," SM Entertainment said, as per the Soompi article.

"The agency and the three artists will carry out a process of mutually equal discussion as well as corrections, and we promised to strengthen our future relationship further," SM added.

The label also apologized over its claim that a "third party" was enticing Chen, Baekhyun and Xiumin to ignore their contracts with SM.

"We learned that there was a misunderstanding about the involvement of a third party. We would like to take this opportunity to apologize to those involved for causing concern with our announcement," it said.

Last week, EXO dropped the music video for "Let Me In," a pre-release single for the group's seventh full album that's scheduled for release on July 10.

• WATCH: MV for K-pop group EXO's pre-release single 'Let Me In'
• K-pop group EXO to make comeback on July 10 with 'Exist'

Apart from EXO, SM Entertainment is home to other popular K-pop acts, including Super Junior, Girls' Generation, SHINee, Red Velvet, NCT and aespa.

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