EXO’s Chen, Baekhyun and Xiumin to sue SM Entertainment for unfair profit distribution • PhilSTAR Life

EXO’s Chen, Baekhyun and Xiumin 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 SoompiK-pop idols, collectively known as EXO-CBX, released a new statement on Friday (June 14) that they would be taking legal action against SM Entertainment.

The trio detailed in their press release the series of events that pitted them against SM Entertainment in recent days. On June 10, they held a press conference to criticize their former agency for demanding a 10% share of their revenues, while failing to keep their promise of a 5.5% distribution fee.

They shared that they offered a deal instead of paying for the music, assets and agency name, but the agency gave no response to their negotiation attempts.

After K-pop idols’ statement, SM Entertainment retaliated the same day and said they would take the trio to court. The company also denied the allegations, saying that EXO-CBX members “personally signed the agreement to pay 10% of their independent business revenue.”

“We will not tolerate the actions of CBX in repeatedly claiming that the exclusive contract and subsequent agreement are invalid to pursue its own interests. While they attempt to justify their wrongdoing by manipulating public opinion, we will respond calmly in accordance with the law and principles and hold CBX accountable in court,” the agency’s statement said.

With this, Chen, Baekhyun, and Xiumin said they would take legal action against the agency, adding that they would “actively participate in revealing everything, including our negotiations last year.”

“Through this lawsuit, we will assert our just rights by receiving accounting and profit distribution data as decided by law and our exclusive contracts,” the CBX statement said, adding that they will also assert in court that the SM Entertainment’s profit distribution system is fake.

Amid this legal incident, the K-pop idols expressed their apologies to their fans “for bringing them anxiety and disappointment.”

“In the future, we will minimize the issuance of official statements and we will try to resolve this situation quickly. Additionally, we promise to stay Chen, Baekhyun, and Xiumin who can be with you forever because of the precious memories we made with you all,” they added.

The trio debuted on the K-pop scene in 2012 under SM Entertainment. They initiated the termination of their exclusivity contracts with the agency in June 2023.

They now come under the independent agency INB100 founded by Baekhyun.