The first court-led mediation between SM Entertainment and EXO’s subunit CBX—consisting of Chen, Baekhyun, and Xiumin—concluded without a settlement on September 23, 2025. The session was held at the Seoul Eastern District Court under the supervision of Presiding Judge Jo Yong Rae. Lasting approximately 30 minutes, the mediation involved only the legal representatives of both parties, and no agreement was reached.
A second mediation session has been scheduled for October 2, 2025, as the court continues efforts to resolve the ongoing contract dispute.
The conflict began in June 2023, when Chen, Baekhyun, and Xiumin notified SM Entertainment of their intention to terminate their exclusive contracts. The members cited a lack of transparency in earnings settlement data and filed a complaint with the Korea Fair Trade Commission.
At the time, the two sides reached a temporary agreement to allow EXO-CBX to continue group activities under SM Entertainment, while pursuing individual projects through their new agency, INB100.
Despite this temporary compromise, tensions resurfaced when SM Entertainment filed a lawsuit against CBX, claiming that the members had failed to honor a 2023 agreement to pay 10% of revenue generated from their individual activities. According to SM, this payment was a contractual obligation meant to be fulfilled alongside their independent projects.
The CBX members, through INB100, countered the lawsuit by highlighting several grievances. They argued that SM Entertainment had not kept its promise to maintain a 5.5% distribution commission on album and music sales, and the 10% payment demands by SM were unfair. CBX also insisted that SM’s profit-distribution system was opaque and did not provide accurate financial information.
The members emphasized that they had not received proper settlement data, which further complicated the financial arrangements agreed upon in 2023.
While the temporary agreement allowed CBX to pursue solo work, the lack of clarity around financial responsibilities has reignited the conflict. The court has now given both parties an opportunity to mediate and potentially resolve the disagreement without proceeding to a full trial.
SM Entertainment initially filed its lawsuit against EXO-CBX in June 2024, insisting that the exclusive contracts remained valid and criticizing what it called “unreasonable behavior” by the members. In response, CBX filed a countersuit, maintaining that SM had not provided proper financial settlements and had failed to honor agreed-upon terms.
The outcome of these mediation sessions will be critical in defining the relationship between SM Entertainment and the CBX members. Not only will it impact the financial and contractual terms for the members’ individual activities, but it could also influence the future of EXO group projects.
EXO is already hinting at a comeback as all members have completed military service, maknae Sehun, the last one to discharge, on September 20. The multiple cryptic teasers suggest a December comeback; however, if the CBX-SM Entertainment conflict is not resolved by then, Baekhyun, Chen, and Xiumin may not participate in group activities.
