EXO’s Chen, Baekhyun and Xiumin accuse SM Ent of unfair business practices; reveal why members resigned from the agency

Representatives for EXO’s Chen, Baekhyun and Xiumin held a press conference to discuss their dispute with SM Entertainment, alleging unfair business practices and violations of settlement agreements. They revealed their intention to cancel the existing agreement and possibly take legal action.

EXO’s CBX Reps Clarify Chen, Baekhyun, and Xiumin’s Grievances Against SM Ent

On June 10, representatives of EXO’s Chen, Baekhyun, and Xiumin (EXO-CBX) held a press conference to discuss their ongoing dispute with SM Entertainment. The conference featured Cha Ga Won, Chairman of p_Arc Group, Kim Dong Joon, CEO of INB100, and lawyer Lee Jae Hak. INB100 currently manages the individual businesses of Chen, Baekhyun, and Xiumin.

During the press conference, lawyer Lee Jae Hak accused SM Entertainment of failing to honor the agreed commission rate of 5.5 percent for albums and music guaranteed to INB100 as part of the settlement terms. Instead, he claimed, SM Entertainment demands 10 percent of artists’ income from individual activities, including album releases, concerts and advertisements.

Despite sending a content certification to SM Entertainment in April regarding the settlement breach, the lawyer revealed that he has yet to receive a response. Lee Jae Hak said: “The agreement no longer has any meaning, so we will cancel the agreement reached on June 18 (on the grounds of) fraud or terminate it for non-fulfillment of obligations. We will also consider filing a criminal complaint and a complaint with the Korea Fair Trade Commission regarding the process of signing the agreement.

The representatives emphasized their commitment to seeking fair treatment and protecting the rights of Chen, Baekhyun, and Xiumin as they navigate this difficult situation with SM Entertainment.

More details on Chen, Baekhyun and Xiumin’s latest activities

On January 8, 2024, Chen, Baekhyun, and Xiumin joined INB100 to manage their solo activities, while their group activities EXO remain under SM Entertainment. Chen released his fourth Korean-language EP, Door, on May 28, 2024, with lead single Empty. Baekhyun also launched his solo career under INB100 and announced his Lonsdaleite concert tour, which kicked off in Seoul on March 16, 2024. Meanwhile, Xiumin, alongside his colleagues, is now also under INB100 for his solo activities.