EXO’s Chen, Baekhyun and Xiumin sue SM Ent for deception and unfair contract terms; demand compensation

EXO-CBX and SM Entertainment (SME) have been engaged in a legal feud for a few weeks now, and the situation has gotten even worse since the last time. The three members reportedly filed a countersuit in response to SM Entertainment’s lawsuit against the members earlier this month.

EXO-CBX filed a countersuit against SM Entertainment

On June 27, 2024, South Korean media outlet Newsis reported that EXO-CBX was moving forward with filing a countersuit against SM Entertainment. Earlier this month, the company filed a lawsuit against the three members of EXO, demanding that they fulfill due payments that were stipulated in their previously settled contract.

However, INB100, the company that currently manages the membership, said that was not what they had agreed on.

However, Chen, Baekhyun, and Xiumin responded to SME’s lawsuit with a countersuit, seeking appropriate compensation based on accurate settlement data for their 12-13s under an exclusive contract with SM Entertainment. The lawsuit was filed at the Seoul Eastern District Court on June 25, 2024.

Additionally, the members and INB100 filed a criminal complaint at the Seoul Seongdong Police Station against SM Entertainment co-CEOs Lee Sung Soo and Tak Young Jun for fraud under the Act on Aggravated Punishments for Certain Crimes economic.

More on the legal feud between EXO-CBX and SM Entertainment

On June 10, 2024, INB100 announced an immediate press conference to reveal SM Entertainment’s unfair practices. The agency then revealed that EXO-CBX and SM Entertainment had resolved their contractual disputes in June last year, ensuring EXO’s continuity. INB100 currently manages the businesses of Baekhyun, Chen and Xiumin in accordance with the terms of the agreement.

However, SM Entertainment now demands 10% of artists’ individual earnings, unlike agreements where only 5.5% would be paid, which sparked an objection from INB100. Additionally, INB100 sent an official objection for this unfair request, and SM Entertainment filed a response for over two months.

SM Entertainment also responded to the allegations and stated that it would not tolerate EXO-CBX’s behavior of refusing contract terms. The company stressed that CBX agreed to the terms and voluntarily signed the contract. SME explained that the 10% royalty standard for individual activities stems from a previous legal arbitration involving EXO’s Chinese members.