Earlier today, EXO’s CBX (Chen, Baakhyun, and Xiumin) agency, INB100, announced an emergency press conference to expose SM Entertainment’s alleged unfair treatment.
In the first statement, CBX mentioned that the disagreement with SM Entertainment stemmed from issues related to album distribution collection rates.
In the afternoon of June 10, a press conference took place at the guesthouse of Seoul’s Shilla Hotel in Jung-gu. The event was led by Kim Dong Jun, the CEO of INB100 and Chairman Cha Ga Won.
Cha Ga Won, who co-founded ONE HUNDRED, the parent company of INB100, alongside singer MC Mong, was also present. Recently, INB100 became a subsidiary of ONE HUNDRED.
INB100 asserts that Chen, Baekhyun, and Xiumin were misled during the negotiations with SM Entertainment concerning EXO group activities.
Attorney Lee Jae Hak, a legal representative of INB100, mentioned in the press conference today that negotiations with SM regarding the three EXO members in the first half of 2023 fell through.
Legal actions, including the termination of the exclusive contract, have been pursued since June last year Subsequently, both parties engaged in further discussions and resolved the matter with an official announcement.
Lee Jae Hak mentioned that even though past negotiations were settled, SM has now shifted its position and failed to fulfill the promised 5.5% album distribution fee, instead asking for 10% of sales from artists’ individual activities.
He stated that they have urged SM to not request for 10% of sales from artists due to the agreement reached last year.
INB100 mentioned that CBX negotiated with the belief that SM would ensure the distribution rate, even though it wasn’t explicitly mentioned in the agreement. They provided a recording of COO Lee Seong-soo confirming these conditions during the negotiation.
After signing the agreement, the three EXO members resolved all legal matters, including withdrawing the report to the Fair Trade Commission, trusting that SM would fulfill the terms presented in the agreement. Additionally, each of them gave up a significant deposit in the newly signed renewal contract.
Furthermore, the legal rep mentioned that the 10% from sales isn’t required to go to SM because CBX set up a new company as their label and independently boosted sales through albums and concerts under their own name.
So, since there’s no involvement from SM, they shouldn’t get a cut. Also, it’s a hefty 10% of sales, not profits, and SM insists this clause should be part of the agreement.
The attorney went on to explain that CBX is seeking to receive and assess the settlement data connected to the current exclusive contract. They are asking for this information promptly, as agreed upon last year. If these requests are not met, Baekhyun, Chen, and Xiumin as well as the agency will take legal action. Additionally, he mentioned that they will carefully examine the situation.