SM Entertainment has initiated legal action against EXO members Chen, Baekhyun, and Xiumin.
The entertainment company filed a lawsuit with the Seoul Eastern District Court on June 12 KST, seeking to enforce the terms of a previously agreed contract with the EXO-CBX trio.
An SM Entertainment representative confirmed on June 13 KST, “It’s true that a lawsuit has been filed against CBX. The matter will be handled according to the law.”
Citing unfair treatment
In December 2022, Chen, Baekhyun, and Xiumin renewed their contracts with SM Entertainment. However, by June of the following year, the trio sought to terminate their contracts, citing unfair treatment.
A legal dispute ensued for about a month, ultimately leading to a settlement where the three agreed to continue promoting with SM Entertainment for EXO’s group activities while having the freedom for individual promotions under a new, independent label. As part of the settlement, 10% of all sales from their new label were to be paid to SM Entertainment.
In January, Baekhyun founded his agency, INB100, listing himself, Chen, and Xiumin as its artists. On June 10, CBX held a press conference alleging unfairness over the 10% payment stipulated in their settlement. Additionally, they accused SM Entertainment of failing to pay 5.5% of earnings from album sales and streaming, another term in the settlement.
Responding to allegations
SM Entertainment responded to these allegations, stating, “The 10% sales receipt from independent labels was a standard set by the court in our previous lawsuit against EXO’s Chinese members, and it is deemed a reasonable payment based on legal precedents.”
EXO-CBX, the first sub-unit of the popular K-pop group EXO, debuted on October 31, 2016. The sub-unit includes Xiumin, Baekhyun, and Chen, with their name derived from the first syllables of their stage names: ChenBaekXi (Chen + Baekhyun + Xiumin) → EXO-CBX.