SM Entertainment Sues EXO-CBX for Contract Dispute

SM Entertainment has officially filed a lawsuit against EXO-CBX (Chen, Baekhyun, and Xiumin) after refuting the claims made by them at the press conference.

On June 13, a representative from SM Entertainment informed a Korean media outlet that they had indeed filed a complaint against EXO’s subunit CBX. They stated that they would proceed in compliance with legal regulations and ethical standards.

Today, the legal newspaper reported that SM had taken legal action by filing a lawsuit demanding contract compliance against Chen, Baekhyun, and Xiumin at the Seoul Eastern District Court the day before. 

The complaint submitted by SM mentioned that they will not tolerate the unreasonable behavior by CBX anymore, prompting them to file the lawsuit early to ensure the agreement’s enforcement.

This lawsuit was filed after the representative of INB100, CBX agency, accused SM Entertainment of not honoring the terms of their initial agreement at a press conference on June 10.

They claimed that SM did not uphold the agreed-upon 5.5% music distribution fee and insisted on receiving 10% of the artists’ personal sales revenue. Chen, Baekhyun, and Xiumin extended their agreements with SM Entertainment in December 2022 but informed them of contract termination in June 2023.

Both parties eventually resolved the conflict by signing a contract with SM for group activities with EXO while CBX’s new agency manages the personal ventures of three EXO members. 

Recently, INB100 merged with ONE HUNDRED, co-funded by MC Mong. Subsequently, the CBX team raised concerns regarding the distribution commission rate.

Following the press conference, SM clarified that they do not possess the authority to set the distribution commission rate for other distributors.  

They mentioned that When negotiating the agreement, CBX requested to include details regarding the distribution commission rate as a condition, but since SM lacks the power to make such decisions, these specifics were not incorporated into the agreement. 

SM removed this provision as it could not be included in the final signed agreement.

Now that the lawsuit is filed, fans are awaiting what the court will decide.