SM Entertainment has officially taken legal action against the members of EXO-CBX, Chen, Baekhyun, and Xiumin.
On June 13, 2024, an SM Entertainment representative confirmed to HeraldPOP, "It is true that we have filed a lawsuit against Chen, Baekhyun, and Xiumin. We will respond according to the law and principles."
On this day, the Law Times reported that SM Entertainment filed a lawsuit on June 12 at the Seoul Eastern District Court, demanding the fulfillment of Chen, Baekhyun, and Xiumin's contracts.
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The complaint filed by SM Entertainment stated that they could no longer tolerate the unreasonable actions of Chen, Baekhyun, and Xiumin and are seeking to enforce the terms of their contract through the lawsuit.
Previously, on June 10, EXO's Chen, Baekhyun, and Xiumin, who are currently under INB100, held an emergency press conference claiming unfair treatment by SM Entertainment. Instead of Chen, Baekhyun, and Xiumin, Chairman Cha Ga Won of One Hundred, CEO Kim Dong Jun of INB100, and lawyer Lee Ja Hak were in attendance.
They claimed that SM Entertainment did not honor the promised 5.5% distribution fee for digital music, all while demanding 10% of the artists' individual activity revenues.
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Chen, Baekhyun, and Xiumin renewed their contracts with SM Entertainment in December 2022 but notified the termination of their exclusive contracts in June 2023. At that time, there was controversy with singer MC Mong being pointed out as being the reason why EXO-CBX left SM Entertainment.
Eventually, both sides resolved the dispute by agreeing that EXO's full group activities would continue under SM Entertainment, while individual activities would be managed by Chen, Baekhyun, and Xiumin's new company.
However, in May 2024, when INB100 joined One Hundred, a subsidiary jointly invested in by MC Mong, the tampering allegations resurfaced.
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Following this, Chen, Baekhyun, and Xiumin raised issues with the distribution fee rates, and after the press conference, SM Entertainment clarified,
"The reference to supporting Chen, Baekhyun, and Xiumin during the dispute process included helping with discussions with the distributor. The distribution fee schedules of other distributors are not something we can control. Chen, Baekhyun, and Xiumin requested to put the distribution fee rate condition in the agreement during the discussion, but as we lack the authority to make this decision, it was left out of the document."
As tensions between the two sides have been reignited, SM Entertainment has officially initiated a lawsuit demanding the fulfillment of the contract with Chen, Baekhyun, and Xiumin, heralding the start of a serious legal battle.
What do you think of the situation? Tell us in the comments below.
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Written by Alexa Lopez
