EXO's Chen, Baekhyun, and Xiumin to sue SM Entertainment over unfair profit distribution
EXO’s Chen, Baekhyun, and Xiumin have announced that they are filing a countersuit against their former agency, SM Entertainment, over alleged unfair profit distribution.
According to a report by South Korean media Soompi, the K-pop idols, collectively known as EXO-CBX, released a new statement on Friday, June 14 that they will be taking legal action against SM Entertainment.
The trio detailed in their statement the series of events between them and SM Entertainment in the past few days. On June 10, they held a press conference calling out their former agency for demanding a 10% share of their revenue, all while failing to fulfill their promise of a 5.5% distribution fee.
They shared that they proposed an agreement instead of paying the agency’s music, assets, and name, but the latter did not give any response to their attempts to negotiate.
After the K-pop idols’ statement, SM Entertainment fired back on the same day and said that they would be suing the trio. The company also denied the allegations, saying that EXO-CBX members “personally signed the agreement to pay 10% of the revenue from their independent business.”
“We will not tolerate CBX’s actions of repeatedly claiming that the exclusive contract and subsequent agreement are invalid to pursue their own interests. While they try to justify their wrongdoings through manipulation of public opinion, we will calmly respond according to the law and principles and hold CBX accountable through the courts,” the agency’s statement read.
With this, Chen, Baekhyun, and Xiumin said that they will be filing a legal case against the agency, adding that they will “actively participate by revealing everything, including our negotiations from last year.”
“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,” CBX’s statement read, adding that they will also assert in the court that SM Entertainment’s profit-distribution system is wrong.
Amid the legal mishap, the K-pop idols expressed their apologies to their fans “for bringing [them] anxiety and disappointment.”
“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,” they added.
The trio debuted in the K-pop scene in 2012 under SM Entertainment. They initiated the termination of their exclusive contracts with the agency in June 2023.
They are now under independent agency INB100 founded by Baekhyun.