EXO-CBX and their agency, INB100, have escalated their legal battle against SM Entertainment executives by filing a counter-lawsuit alleging fraud amidst a contentious dispute over financial agreements. This conflict began when Chen, Baekhyun, and Xiumin, members of the popular sub-unit EXO-CBX, departed from SM Entertainment last year, triggering a series of negotiations and legal actions.

EXO-CBX vs. SM Entertainment on breaching agreement

The controversy intensified on June 10 when INB100, representing the former EXO members, held a press conference accusing SM Entertainment of breaching a previously agreed-upon 5.5% music record distribution fee. They further claimed that SM Entertainment unfairly demanded 10% of sales from EXO-CBX’s individual activities while withholding crucial settlement data.

In response, SM Entertainment refuted these allegations, asserting that the EXO members continue to benefit from the group’s brand and legacy. On June 12, SM Entertainment retaliated by filing a lawsuit against Chen, Baekhyun, and Xiumin, contesting the terms of their departure and subsequent financial arrangements.

Amidst the legal back-and-forth, EXO-CBX issued a statement on June 14, addressing the dispute and revealing efforts to propose an alternative agreement concerning payment for the use of SM Entertainment’s music, assets, and brand. They expressed frustration that their proposal was ignored, leading to SM’s lawsuit.

In their statement, EXO-CBX and INB100 vowed to cooperate fully with authorities, pledging to disclose all relevant details, including last year’s negotiations, to substantiate their claims. They also indicated their intent to challenge SM Entertainment’s profit distribution practices in court, asserting that the agency’s financial system is flawed. The outcome of this legal battle could have significant implications for the relationship between artists and management companies in the K-pop industry.

Recently, Chen has released his solo, “Empty,” which serves as his first comeback song under a new label. Empty is a ballad featuring gentle piano tones and melody that evokes a sense of loneliness and emptiness. INB100 also announced on June 20 that Baekhyun will have his encore for his 2024 Baekhyun Asia Tour ‘Lonsdaleite [dot].’