EXO-CBX Experiences Unfair Treatment SM Entertainment, Separates Agency But Asks For Part

EXO-CBX (SM Entertainment)

JAKARTA - K-pop group EXO-CBX or Chen, Baekhyun, and Xiumin held a press conference against SM Entertainment. Monday, June 10, they revealed that they received unfair treatment from their former agency.

The press conference was held by director Cha Ga Won, CEO of INB100 Kim Dong Joon, and attorney Lee Jae Hak. In June last year, they reached an agreement with SM Entertainment regarding contract termination. At that time, EXO-CBX was allowed to carry out individual activities with its new agency, INB100 but still active for EXO groups with SM Entertainment.

SM Entertainment ignored the negotiation requirements that became the basis of the agreement and demanded 10 percent of the individual artist's income from INB100. INB100 sent certification containing content regarding the wrong actions, but SM Entertainment has not responded for more than two months," said INB100.

INB100 explained that they have an exclusive contract for a number of albums within five years. If the album is not released then the contract is extended. They voluntarily renewed the contract in order to keep the names EXO and fans.

INB100 also explained that the three members were willing to charge for contract extensions to continue their careers with EXO. However, SM Entertainment did not heed the cost of music and royalties as promised by SM CEO Lee Sung Soo.

EXO group activities are carried out under separate legal rules. Three members handed over contract extension fees when signing a contract. Three members did not receive contract fees to keep EXO and fans," said lawyer Lee Jae Hak.

"After establishing INB100, SM did not meet the cost of 5.5% of the music distribution. They will file a complaint to SM Entertainment for fraud," he said.

Not paying their rights, SM Entertainment actually asked for 10% of the activity income for every Chen, Baekhyun, and Xiumin at their new agency.

There is a clause that 10% of the profits generated from all entertainment activities (excluding production activities) in the new company will be given to SM. Although SM did not meet the terms of the agreement, they insisted on receiving 10% of the sale, "a lawyer said.

EXO-CBX insists it will terminate the contract if SM continues to request a 10% share of the members' individual activities.