EXO members Chen, Baekhyun, and Xiumin, who form the subunit EXO-CBX, are once again in conflict with their agency, SM Entertainment, just a year after settling their previous dispute.
During a press conference on Monday, June 10, the trio’s lawyer, Lee Jae-hak, accused SM Entertainment of unfairly demanding a larger cut of the trio's revenue without fulfilling its contractual obligations. According to South Korean media reports, the agreement signed on June 18 last year stipulated that the singers would provide SM Entertainment with a 10 percent cut from individual activities if the agency reduced their distribution fees to 5.5 percent.
"SM Entertainment is failing to uphold the 5.5 percent commission rate and is instead demanding 10 percent of the artists' revenue from their personal activities, albums, concerts, and commercials," Lee claimed. He added that a breach notice was sent in April, but SM Entertainment did not respond. Lee also suggested potential fraud, stating, "If SM was not willing to, or was not capable of lowering distribution fees but still made our artists sign an agreement and end a legal dispute, this can be seen as a case of fraud ... If the label continues to demand royalties, we will pursue further legal action."
In response, SM Entertainment issued a statement countering these claims. "We have no authority to decide on the percentage of distribution fees. EXO-CBX asked us to include this issue in our written agreement, but we told them that we were not a decision maker. So we deleted that part in the end," the agency stated. SM Entertainment asserted that it had "provided help in different ways" and that the trio "have not suffered any particular losses."
The agency also alleged that the three members are benefiting from being EXO members without fulfilling their obligations and have been attempting to invalidate the renewal contract they signed. "While they try to justify their wrongdoings through manipulation of public opinion, we will calmly respond according to the law and principles and hold CBX accountable through the courts," SM Entertainment wrote.
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