EXO’s Baekhyun Chen and Xiumin have taken a decisive step in their ongoing conflict with SM Entertainment. The EXO-CBX members have announced their plans to sue the agency over allegations of unfair profit distribution.
Baekhyun Chen and Xiumin vs SM Entertainment
Earlier this week, the EXO-CBX members held a press conference to voice their concerns, accusing SM Entertainment of failing to honor an agreed-upon 5.5 percent music distribution fee for INB100. They further argued that SM Entertainment’s demand for 10 percent of their earnings from solo ventures was unjust. This press conference highlighted the deep-seated issues between the artists and their former management.
SM Entertainment responded with a counterclaim, stating that EXO-CBX had voluntarily terminated their exclusive contracts ahead of schedule. According to the agency, the trio had signed an agreement that stipulated they would remit 10 percent of their individual activity revenue to SM Entertainment as a condition for early contract termination. SM Entertainment asserted that there was no clause regarding a distribution fee in the final agreement, as the agency purportedly lacked the authority to determine such a fee.
The situation escalated further when SM Entertainment declared on June 13 that they would pursue legal action to ensure EXO-CBX adhered to the terms of their agreement. The announcement came after a series of additional statements from both parties, each attempting to clarify their stance and justify their actions.
EXO-CBX Statement Includes Apology to Fans
On June 14, Chen, Baekhyun, and Xiumin issued a new statement, revealing their decision to sue SM Entertainment over the disputed profit distribution. In their statement, the trio expressed their frustration with the agency’s practices and reiterated their commitment to seeking justice through legal channels.
“As SM has filed a lawsuit first, we will actively participate by revealing everything, including our negotiations from last year.
“Additionally, regarding the distribution of profits that we had always doubted, we will file a lawsuit against SM over the distribution of profits. Through this lawsuit, we will assert our just rights by receiving accounting and profit-distribution data as decided by the law and our exclusive contracts. We will also reveal to the court that SM’s profit-distribution system is wrong.
“Also, through our complaint to the Fair Trade Commission regarding the unfairness of our exclusive contracts, we will receive a proper judgment from the law.”
They also took the opportunity to apologize to their fans for the turmoil and uncertainty that the dispute has caused.
“To our fans who always send us love and support and should only receive joy [in return], we feel truly sorry for bringing you anxiety and disappointment due to the same issue as last year.
“In the future, we will minimize releasing official statements, and we will try to resolve this situation quickly.
“Also, we promise to remain a Chen, Baekhyun, and Xiumin who can forever be together with you through the precious memories we’ve made with you all.”
This legal battle marks a significant chapter in the ongoing struggle for fair treatment and transparency in the K-pop industry. As EXO-CBX and SM Entertainment prepare for their court showdown, fans and industry observers alike will be closely watching to see how this conflict unfolds and what implications it may have for other artists and agencies in similar situations. The outcome of this lawsuit could potentially reshape the dynamics of artist management and contract negotiations in the K-pop world.