Legal action has been officially taken by SM Entertainment against EXO-CBX members Chen, Baekhyun, and Xiumin.
On June 13, 2024, a representative from SM Entertainment confirmed to HeraldPOP that they had indeed filed a lawsuit against Chen, Baekhyun, and Xiumin. The company stated that they would adhere to the law and follow their principles in response to the situation.
On June 12, the Law Times reported that SM Entertainment filed a lawsuit at the Seoul Eastern District Court, demanding the fulfillment of Chen, Baekhyun, and Xiumin’s contracts on that day.
The complaint, submitted by SM Entertainment, declared that the continued misconduct of Chen, Baekhyun, and Xiumin was no longer acceptable and that they intend to uphold the terms of their contract by pursuing legal action.
Recently, on June 10, EXO members Chen, Baekhyun, and Xiumin, who are currently represented by INB100, held a sudden press conference to address their grievances against SM Entertainment. However, instead of the three members, Chairman Cha Ga Won of One Hundred, CEO Kim Dong Jun of INB100, and lawyer Lee Ja Hak attended the conference.
The allegation was that SM Entertainment failed to fulfill their commitment of a 5.5% distribution fee for digital music, while simultaneously requesting 10% of the artists’ earnings from their individual activities.
In December 2022, Chen, Baekhyun, and Xiumin renewed their contracts with SM Entertainment. However, in June 2023, they announced their decision to terminate their exclusive contracts. This caused some controversy, as singer MC Mong was speculated to be the reason for EXO-CBX’s departure from SM Entertainment.
Eventually, a resolution was reached where EXO would continue their full group activities under SM Entertainment, while Chen, Baekhyun, and Xiumin’s new company would manage their individual activities.
Nonetheless, the tampering allegations resurfaced in May 2024, when INB100 became a part of One Hundred, a subsidiary that was jointly invested in by MC Mong.
During the press conference, Chen, Baekhyun, and Xiumin raised concerns about the distribution fee rates. Subsequently, SM Entertainment provided clarification on the matter.
“The reference to supporting Chen, Baekhyun, and Xiumin during the dispute process included helping with discussions with the distributor. The distribution fee schedules of other distributors are not something we can control. Chen, Baekhyun, and Xiumin requested to put the distribution fee rate condition in the agreement during the discussion, but as we lack the authority to make this decision, it was left out of the document.”
Despite renewed tensions between the two parties, SM Entertainment has taken legal action by filing a lawsuit against Chen, Baekhyun, and Xiumin in order to enforce their contractual obligations. This marks the beginning of a potentially lengthy and contentious legal dispute.
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