EXO-CBX Accuses SM of Not Honoring 5.5% Distribution Rate, Contemplates Fraud Charges

On June 10, INB100, the agency that represents EXO members Chen, Baekhyun, and Xiumin (also known as EXO-CBX or CBX), organized a press conference at the Shilla Hotel in Seoul. The press conference was hosted by INB100’s CEO Kim Dong-joon and Chairman Cha Ga-won, both founders of ONE HUNDRED along with singer MC Mong.

According to INB100, SM Entertainment has deceived the artists by providing false information during negotiations regarding EXO’s group activities.


Attorney Lee Jae-hak, representing INB100, of Law Firm Lin, stated that negotiations between CBX and SM ended last year, resulting in legal action, including the termination of their contract. Despite agreeing to a settlement, SM reneged on their promise to abide by the 5.5% album distribution rate previously agreed upon. Instead, they insisted on receiving 10% of the revenue from the artists’ individual endeavors, such as album sales and advertisements. This is an unjust action, and as a result, we have requested that SM stop demanding 10% of the artists’ earnings, as they have failed to fulfill their obligations under the agreement.

According to INB100, CBX had confidence in SM’s assurance about the distribution rate and consented to the conditions, even though it was not explicitly stated in the contract. They maintain that they have irrefutable proof of this agreement, including a recording of COO Lee Sung-soo discussing the terms during the negotiation process.

As stated by INB100, CBX withdrew their complaints to the Fair Trade Commission and resolved any remaining legal matters after signing the agreement, trusting that SM would fulfill their obligations.

“Despite forfeiting significant contract fees for new agreements, Baekhyun was determined to protect the rights and interests of other artists through his efforts. Lee Jae-hak stated that Baekhyun was pleased to hear that SM had adjusted the terms of contracts with other artists, seeing it as a rewarding and fruitful outcome.”

Attorney Lee clarified the clause stating that CBX must pay 10% of their solo activity revenue to SM, stating, “One of the terms in the agreement requires CBX to pay royalties equal to 10% of the sales generated from their individual production activities. Although SM did not meet their promised distribution receipt rate, they are still demanding the 10% from CBX’s independent earnings. This is unfair, especially considering SM’s lack of involvement in these activities. The 10% fee was only agreed upon because SM had promised a lower distribution rate.”


The lawyer advised SM to admit their failure in fulfilling the agreed distribution rate and to cease their demand for 10% of CBX’s solo activity earnings. Additionally, the lawyer requested prompt submission of comprehensive settlement documents and evidence, to which SM has not complied.

He ended his statement by reaffirming, “CBX remains committed to reviewing the settlement documents pertaining to their prior exclusive agreement, as promised last year. Failure to meet these requirements will result in us actively pursuing legal measures.”

The source of this information can be found on Naver at the following link: https://m.entertain.naver.com/now/article/609/0000863142

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