EXO members Chen, Baekhyun and Xiumin, part of the subunit EXO-CBX, are once again in conflict with SM Entertainment just one year after settling their previous dispute

During a press conference on Monday (Jun 10), the trio’s lawyer Lee Jae-hak said that the entertainment agency is unfairly demanding a cut from the trio’s revenue without fulfilling its end of the deal signed on Jun 18 last year, reported South Korean media.

The agreement stated that the singers would give SM Entertainment a 10 per cent cut from individual activities, provided the talent agency reduced their distribution fees to 5.5 per cent. 

“SM Entertainment is failing to uphold the 5.5 percent commission rate and is instead demanding 10 percent of the artists’ revenue from their personal activities, albums, concerts and commercials,” Lee claimed.

He added that a breach notice was sent in April, but SM Entertainment did not respond. 

“If SM was not willing to, or was not capable of lowering distribution fees but still made our artists sign an agreement and end a legal dispute, this can be seen as a case of fraud … If the label continues to demand royalties, we will pursue further legal action.”

Hours after the press conference, SM Entertainment issued a statement to counter the claims, writing: “We have no authority to decide on the percentage of distribution fees. 

“EXO-CBX (the trio’s subunit) asked us to include this issue in our written agreement, but we told them that we were not a decision maker. So we deleted that part in the end.”

The entertainment agency added that it had “provided help in different ways” and the trio “have not suffered any particular losses”.

SM Entertainment also alleged that the three members are enjoying EXO member benefits without fulfilling their obligations and that they had been repeatedly trying to invalidate the renewal contract they signed.

“While they try to justify their wrongdoings through manipulation of public opinion, we will calmly respond according to the law and principles and hold CBX accountable through the courts,” wrote SM Entertainment.


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