EXO-CBX files lawsuit against SM executives amid ongoing dispute

Chen, Baekhyun and Xiumin of boy band EXO filed a lawsuit against SM Entertainment executives, according to industry insiders on Wednesday.

From left, Chen. Baekhyun and Ximuin of boy band EXO's subunit EXO-CBX [SM ENTERTAINMENT]

Chen, Baekhyun and Xiumin of boy band EXO filed a lawsuit against SM Entertainment executives, according to industry insiders on Wednesday.

The three artists, collectively known as EXO-CBX, and agency INB100, which manages the three members' activities outside the EXO band, reportedly sued SM's Chief A＆R Officer Lee Sung-su and co-CEO Tak Young-jun on Tuesday, accusing the agency officials for violating Korea's Act on the Aggravated Punishment of Specific Economic Crimes.

The members claimed that SM did not follow through with the promise made last June that INB100 would pay a 5.5 percent rate in its music distribution deal at Kakao — the majority shareholder of SM Entertainment — as opposed to the 15 to 20 percent that companies outside of the Kakao umbrella are required to pay. Because SM didn't keep its promise, the members claim that INB100 should not be held accountable to meet its end of the deal, which was to pay a 10 percent royalty fee to SM to use the agency's intellectual property (IP).

EXO-CBX members and SM Entertainment locked horns for three weeks in June last year when the three EXO members demanded that SM terminate the “unfair” exclusive contracts with them, then announced it to the press. The two parties settled the dispute on June 19, 2023 with the aforementioned deal, made verbally by then-CEO Lee Sung-su of SM.

The issue reignited earlier this month as INB100 held a press conference accusing SM of locking EXO-CBX into an unfair deal that was made the year prior, calling out the agency's failure to ensure the promised 5.5 percent music distribution fee.

SM subsequently filed a civil suit against the EXO members, demanding they pay the 10 percent royalty fee that the members allegedly evaded for two months.

BY LEE JIAN [lee.jian@joongang.co.kr]