EXO-CBX Suffers Unfair Treatment SM Entertainment, Splits Agency But Demands Part

JAKARTA – K-pop group EXO-CBX or Chen, Baekhyun and Xiumin held a press conference against SM Entertainment. On Monday June 10, they revealed that they had received unfair treatment from their former agency.

The press conference was held by director Cha Ga Won, INB100 CEO Kim Dong Joon and lawyer Lee Jae Hak. In June last year, they reached an agreement with SM Entertainment regarding the termination of the contract. At that time, EXO-CBX was allowed to do individual activities with its new agency, INB100 but still active for EXO groups with SM Entertainment.

SM Entertainment ignored the negotiation demands that became the basis of the deal and demanded 10 percent of the individual artist’s earnings from 100 INB. INB100 sent a certification containing content regarding wrongdoing, but SM Entertainment has not responded for over two months,” INB100 said.

INB100 explained that it has an exclusive contract for a certain number of albums within five years. If the album is not released, the contract is extended. They voluntarily renewed the contract in order to keep the EXO and fan names.

INB100 also explained that all three members were willing to charge contract extensions to continue their careers in EXO. However, SM Entertainment did not consider the cost of music and royalties as promised by SM CEO Lee Sung Soo.

EXO Group’s activities are carried out under separate legal rules. Three members remitted the contract extension fee when signing a contract. Three members did not receive contractual fees to keep EXO and their fans,” said lawyer Lee Jae Hak.

“After the establishment of INB100, SM was unable to cover the 5.5 percent cost of music distribution. They will file a complaint with SM Entertainment for fraud,” he said.

Not paying their rights, SM Entertainment actually demanded 10% of the business income for each Chen, Baekhyun, and Xiumin in their new agency.

There is a clause that 10% of the profits generated from all entertainment activities (excluding production activities) of the new company will be donated to SM. Although SM did not comply with the terms of the agreement, they insisted on receiving 10% of the sale,” said a lawyer.

EXO-CBX insists that it will terminate the contract if SM continues to demand a 10% share of individual members’ activities.

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