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EXO’s Chen, Baekhyun and Xiumin sue SM Ent over deception and unfair contract terms; demand compensation
EXO-CBX has responded to SM Entertainment’s lawsuit with a countersuit and accuses them of fraud and unfair contract terms.
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EXO CBX filed a countersuit against SM Entertainment
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More information about EXO CBX and SM Entertainment's legal feud
EXO-CBX and SM Entertainment (SME) have been engaged in a legal feud for a couple of weeks now, and the situation has further escalated since the last time. The three members have reportedly filed a counter-lawsuit in response to SM Entertainment’s lawsuit filed against the members earlier this month.
EXO-CBX filed a countersuit against SM Entertainment
On June 27, 2024, the South Korean news outlet Newsis reported that EXO-CBX is going ahead with filing a countersuit against SM Entertainment. Earlier this month, the company filed a lawsuit against the three members of EXO, demanding that they fulfill the due payments that were outlined in their previously settled contract.
However, INB100, the company that the members are currently managed by, stated that it was not what they agreed upon.
However, Chen, Baekhyun, and Xiumin have responded to SME’s lawsuit with a countersuit, seeking appropriate compensation based on accurate settlement data for their 12–13 years under an exclusive contract with SM Entertainment. The lawsuit was filed at Seoul Eastern District Court on June 25, 2024.
Furthermore, the members and INB100 filed a criminal complaint at the Seoul Seongdong Police Station against SM Entertainment's co-CEOs Lee Sung Soo and Tak Young Jun for fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
More information about EXO-CBX and SM Entertainment's legal feud
On June 10, 2024, INB100 announced an immediate press conference to reveal the unfair practices by SM Entertainment. The agency went on to reveal that EXO-CBX and SM Entertainment settled contract disputes in June last year, ensuring EXO's continuity. INB100 currently manages Baekhyun, Chen, and Xiumin’s activities per agreement terms.
However, SM Entertainment now demands 10% of individual artist revenue, contrary to agreements that only 5.5% will be paid, prompting an objection from INB100. Moreover, INB100 sent an official objection for the unfair demand, and SM Entertainment has filed to reply for over two months.
SM Entertainment has also responded to the allegations and said that they will not tolerate EXO-CBX’s behavior of denying the contract terms. The company has emphasized that CBX agreed to the terms and voluntarily signed the contract. SME explained that the 10% royalty standard for individual activities stems from a previous court arbitration involving EXO's Chinese members.
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