In an escalating dispute between K-pop group EXO’s members Chen, Baekhyun, and Xiumin, and their former agency SM Entertainment, both sides have filed lawsuits against each other.
The tensions began on June 10 when the trio’s agency, INB100, held a press conference accusing SM of unfair business practices, local daily Maeil Business Newspaper or MK reported Friday (June 14).
INB100 claimed SM allegedly failed to uphold a previously agreed-upon 5.5% music distribution fee for the trio’s album releases under their new label.
Additionally, they alleged SM demanded a 10% cut from the members’ individual activities and refused to provide proper accounting and settlement data.
“At that press conference, we actively proposed an agreement in which we would pay usage fees for SM’s assets such as music and statements in exchange for 10% of sales, but SM ignored this,” Chen, Baekhyun, and Xiumin said in a statement cited by MK.
“At that press conference, we actively proposed an agreement in which we would pay usage fees for SM’s assets such as music and statements in exchange for 10% of sales, but SM ignored this.”
Chen, Baekhyun, and Xiumin, EXO
SM responded on June 12 by filing a lawsuit against the three EXO members, accusing them of breaching their contracts, the report said. SM claimed the dispute stemmed from the members’ attempt to avoid fulfilling their contractual obligations while still benefiting from SM’s resources.
Following SM’s lawsuit, INB100 announced their own legal action on June 14. They plan to sue SM to receive a fair settlement based on proper accounting practices and challenge the alleged unfairness of their exclusive contracts. INB100 also intends to file a complaint with South Korea’s Fair Trade Commission regarding the contracts.
“Through the relevant litigation procedures, we will claim our legitimate rights by receiving accounting and settlement data as stipulated by law and exclusive contract,” the trio was quoted by MK as saying.
“Since SM filed the lawsuit first, we will disclose everything, including last year’s negotiation process, and take active action,” the trio added.
In a message to fans, Chen, Baekhyun, and Xiumin apologized for the ongoing situation and vowed to work towards a swift resolution.
EXO members initially signed contract extensions with SM Entertainment. However, in June 2023, the three members decided to terminate the agreements. Citing issues with receiving accurate financial information, they filed an antitrust complaint with the Fair Trade Commission against the agency.
A compromise was eventually reached. While the exclusive contracts with SM remained in place, the members gained the freedom to pursue solo activities under INB100, an independent label established by Baekhyun.
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