EXO-CBX Representatives Detail Alleged Breach of Settlement by SM Entertainment

On June 10, representatives of EXO members Chen, Baekhyun, and Xiumin held a press conference to discuss their ongoing dispute with SM Entertainment. Attendees included p_Arc Group chairwoman Cha Ga Won, INB100 CEO Kim Dong Joon, and attorney Lee Jae Hak. INB100 manages the individual activities of the three artists.

During the conference, attorney Lee Jae Hak claimed, “SM Entertainment is not fulfilling the 5.5 percent commission rate for albums and music guaranteed to INB100 as part of the settlement condition.” He further alleged, “They are engaging in unfair practices by demanding 10 percent of the artists’ revenue generated from individual activities such as individual album releases, concerts, and advertisements.”

Lee Jae Hak noted that despite sending a certification of contents to SM Entertainment in April regarding the breach of settlement, there has been no response. He asserted, “The agreement no longer has any meaning, so we will cancel the agreement made on June 18 fraud or terminate it on the grounds of 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.”

Earlier, INB100 representatives announced the press conference to address alleged unfair treatment from SM Entertainment. An INB100 representative stated, “Last year in June, EXO-CBX and SM Entertainment released a joint statement announcing that they amicably resolved the legal dispute regarding the termination of exclusive contracts and filing a complaint with the Korea Fair Trade Commission. At the time, the situation was resolved through negotiation because both sides believed that it was more important than anything else for EXO to continue their activities normally. According to the agreement at the time, INB100 was established [to manage] the artists’ individual activities as well as activities under EXO-CBX.”

The representative continued, “SM Entertainment disregarded the negotiated terms that were the premise of the agreement and is demanding 10 percent of the revenue from the artists’ individual activities from INB100. INB100 sent a certification of contents regarding the wrongful treatment, but SM Entertainment has yet to respond for over two months.”