SM Entertainment, EXO-CBX fail to reach settlement in first court mediation, second round set for October

Dispute reignited over contract terms and distribution fees

From left: EXO-CBX members Chen, Baekhyun and Xiumin (INB100)

The first court-led mediation attempt between EXO subunit CBX — comprising Baekhyun, Xiumin and Chen — and SM Entertainment in their 600 million won ($430,000) contract dispute has failed.

The Seoul Eastern District Court on Tuesday held the initial mediation session for SM Entertainment’s contract enforcement lawsuit against CBX, as well as CBX’s countersuit. The closed-door proceedings lasted about 30 minutes, with only legal representatives from both sides in attendance.

SM Entertainment held its position that “exclusive contracts must be upheld,” stressing that CBX had agreed to pay 10 percent of revenue from individual activities. CBX’s side, however, maintained that the company failed to provide proper accounting records and did not honor its promise of a 5.5 percent distribution fee on album and music sales.

The conflict dates back to June 2023, when the CBX members accused SM Entertainment of unfair long-term contracts and a lack of transparency in payments.

After 19 days of dispute, both sides reached an agreement. Baekhyun went on to establish his own agency, INB100, alongside Chen and Xiumin, appearing to bring the matter to a close.

But controversy reignited when INB100 was incorporated as a subsidiary of One Hundred Label, sparking suspicions of “indirect tampering.” In June 2024, INB100 challenged the earlier settlement terms, reigniting the legal battle.

In the same month, One Hundred Label Chairman Cha Ga-won held a press conference, arguing, “SM Entertainment is demanding 10 percent of sales revenue despite failing to uphold the agreed 5.5 percent distribution fee.”

The court has set a second mediation session for Oct. 2.