CBX’s Response to SM’s Legal Action and Lawsuit for Settlement Payments

On June 14th, INB100, the agency representing CBX, announced that SM had filed a lawsuit against them on June 12th. This revealed that SM’s response to the situation was to take legal action. INB100 added that during the press conference, they had proposed a settlement plan to compensate SM for the use of their assets, such as music, by offering 10% of the sales revenue. However, SM ignored this proposal and instead responded with immediate legal action, without providing any further communication.

CBX’s representatives stated their unwavering resolve, stating, “In light of SM’s initial lawsuit, we will fully disclose all negotiations that have taken place since last year and actively participate in the proceedings.”They added, “We will utilize legal channels to obtain the necessary financial and contractual information to assert our rightful claims. Additionally, we will file a complaint with the Fair Trade Commission to seek a fair legal ruling on the unjust nature of the exclusive contract.”

“We sincerely apologize for causing anxiety and disappointment due to recurring issues from last year. Moving forward, we will limit our statements and work diligently to resolve this situation promptly.”

On June 10th, CBX’s representatives held an urgent press conference where they accused SM of unfair treatment. They alleged that, despite SM’s promise to lower the album distribution fee to 5.5% for INB100, the company has continued to demand 10% of revenue from the artists’ individual activities, such as album sales, concerts, and advertisements.

In response, SM clarified that their exclusive contract with CBX is still in effect. They had previously allowed individual activities through personal corporations, and CBX had willingly signed an agreement that included a 10% payment from their personal corporation activities. SM also stated that the root cause of these events was the improper enticement of their artists by MC Mong and Chairman Cha Ga-won. They stated that they will not tolerate CBX’s repeated attempts to claim the invalidity of the exclusive contract and agreement for their own gain. SM plans to handle the situation calmly and take appropriate legal action to hold CBX accountable through the court.

In reply, CBX’s representatives released a further statement, requesting that SM provide clarification on the criteria and evidence behind their accusations of tampering. They stated their intention to take legal action against SM for defamation and dissemination of false information in response to these allegations.