EXO’s Chen, Baekhyun, and Xiumin will sue SM Entertainment for unfair profit distribution.
The K-pop idols, also known as the subunit EXO-CBX, held a press conference early this week, where they spoke about how the agency did not give their promised 5.5 percent music distribution fee for Baekhyun’s new label INB100, according to Soompi. The members are now under that record label.
EXO-CBX said that the agency was demanding 10 percent of the revenue from their individual projects and that this was unfair.
“Additionally, at that press conference, we actively proposed an agreement of paying a fee for SM’s music, assets, and name instead of 10 percent of our revenue, but SM ignored this proposal,” the trio said in a new joint statement published by Soompi on Friday.
SM Entertainment said in a statement this week that since EXO-CBX filed to terminate their exclusive contracts preterm in 2023, they had signed an agreement that said they would pay the agency 10 percent of their revenue from individual projects. SM Entertainment added that there was no clause about a distribution fee in the final agreement as the agency did not have the authority to decide that.
“In the end, SM did not make any reply to our attempts at negotiation, and they immediately drew the mighty sword of legal action,” EXO-CBX added.
It was announced on June 13 that SM Entertainment would be taking legal action against EXO-CBX to enforce the fulfillment of their contracts.
Following SM’s filing, EXO-CBX said they will “actively participate by revealing everything, including our negotiations from last year.”
EXO-CBX also said that they would be suing SM Entertainment over unfair profit distribution.
“Through this lawsuit, we will assert our just rights by receiving accounting and profit-distribution data as decided by the law and our exclusive contracts. We will also reveal to the court that SM’s profit-distribution system is wrong,” they said.
“Also, through our complaint to the Fair Trade Commission regarding the unfairness of our exclusive contracts, we will receive a proper judgment from the law,” the members added.
To end their statement, EXO-CBX apologized to their fans.
“To our fans who always send us love and support and should only receive joy [in return], we feel truly sorry for bringing you anxiety and disappointment due to the same issue as last year,” they said.
The idols also said they “will try to resolve this situation quickly.”
“Also, we promise to remain a Chen, Baekhyun, and Xiumin who can forever be together with you through the precious memories we’ve made with you all,” they said.
“Thank you for taking the time to read this long statement. We apologize for once again making you feel unnecessary emotions,” EXO-CBX added.
EXO debuted in 2012 and EXO-CBX was formed in 2016. Chen, Baekhyun, and Xiumin have also released solo songs.
— Nika Roque/CDC, GMA Integrated News
