June 10 – EXO members Chen, Baekhyun, and Xiumin, collectively known as EXO-CBX, have publicly accused their former agency, SM Entertainment (SM), of unfair practices. At an emergency press conference held at the Shilla Hotel in Seoul, the trio, along with representatives from their new agency INB100, detailed their grievances against SM.
INB100, represented by CEO Kim Dong-joon and attorney Lee Jae-hak, claimed that SM has demanded 10% of the artists’ individual sales despite not providing any contract renewal fee. “We don’t even receive a contract renewal fee from SM. It’s unfair to ask for 10% of sales,” stated lawyer Lee Jae-hak.
The conflict began in late 2022 when SM pressured the artists to re-sign for an additional five years, despite their initial contracts being signed in May 2011. Baekhyun, who was serving in the military at the time, felt coerced into signing due to the potential automatic extension of his contract if he did not comply.
INB100 has sent proof of unfairness to SM, but has not received a response in over two months. The agency also raised concerns about SM’s accounting practices, citing Article 14 of the Pop Culture and Arts Act, which mandates separate accounting books for different artists. SM, however, has refused to disclose these records, citing potential confidentiality breaches involving other artists.
The dispute escalated in June 2023 when EXO-CBX notified SM of the termination of their exclusive contracts, citing lack of transparency in settlements and unfair long-term contracts. Although SM promised to release settlement data, they have yet to fulfill this promise.
SM executives Lee Seong-soo and Tak Young-joon offered terms of agreement, proposing a distribution fee of 5.5% for music content developed through Kakao. However, the artists claim that SM is now demanding 10% of their sales, which they argue is excessive given that the sales are independently generated by the artists themselves.
Amidst the ongoing conflict, EXO-CBX continues to work as a team with the other EXO members under INB100 without receiving any contract fee. They aim to protect the interests of EXO and their fans while navigating these legal and contractual disputes.
In response to the allegations, SM has accused the music agency Big Planet Made of being involved behind the scenes to support EXO-CBX, an accusation Big Planet has denied. Despite these tensions, EXO-CBX has moved forward, with Baekhyun establishing a private company and the group joining INB100, which has recently become a subsidiary of One Hundred, a production company co-invested by PIC Group Chairman Cha Ji-won and MC Mong.
MC Mong, who was previously accused of attempting to recruit EXO-CBX, has denied any involvement, stating his relationship with Baekhyun is purely personal. Nonetheless, the artists’ move to INB100 has brought them under the management of One Hundred, further entangling the ongoing dispute with SM Entertainment.
Article source, images courtesy of MBC NEWS / INB100
1 thought on “[EXO-CBX] Alleges Unfair Demands by SM Entertainment: “Working As A Team Without Any Contract Fees to Protect EXO and Fans””