K-pop boy band EXO’s subunit CBX (Chen, Baekhyun, Xiumin), represented by their management agency, plans to hold a press conference on June 10 to address what they perceive as unfair treatment by SM Entertainment. This comes a year after both parties resolved their misunderstanding.
INB100, the label representing CBX, said, “Last June, CBX concluded their contract termination and legal proceedings with SM Entertainment smoothly through a joint statement, including filing with the Korea Fair Trade Commission.” They added, “Both parties prioritized EXO’s activities and resolved the situation.” They further explained, “Under the previous agreement, artists now operate under their names and as EXO-CBX under INB100.”
The agency said, “SM Entertainment demands 10% of the artists’ individual activity revenue from INB100, ignoring the negotiation contents that formed the basis of the agreement,” adding, “INB100 provided evidence of unfairness, but SM Entertainment has not responded for over two months.” They announced their intention to expose SM Entertainment’s unfair treatment through the press conference.
CBX filed a complaint against SM Entertainment with the Korea Fair Trade Commission (KFTC) last June, highlighting issues such as non-provision of settlement data and questioning long-term contracts. They requested corrective measures to address SM Entertainment’s unfair contract practices and called for a thorough investigation of all SM Entertainment artists’ exclusive contracts.
SM Entertainment countered, saying, “The duration of exclusive contracts being challenged with the KFTC has already been recognized as legitimate by the Supreme Court in 2018,” while refuting claims of “slave contracts” as misrepresentations of the facts. They noted that EXO members, including the three from CBX, had mutually agreed to sign new exclusive contracts, but later, CBX sought to undermine the effectiveness of these contracts by reversing their position abruptly.
At the time, SM Entertainment also raised suspicions of “third-party intervention,” with singer MC Mong implicated. However, MC Mong clarified, “There has been no deliberate interference in the dispute between SM and CBX,” adding, “My friendship with Baekhyun is merely that of senior and junior in the music industry, and I have not taken any actions to recruit the artists using personal connections.”
CBX and SM Entertainment announced reconciliation on June 19 last year, releasing a joint statement. Both parties affirmed thoroughly discussing all issues and committed to maintaining their contractual relationship, agreeing to certain modifications to ensure a more active and continuous engagement in EXO’s activities. Regarding external interference, they acknowledged misunderstandings and apologized to concerned parties for any distress caused.
