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| ▲EXO members Chen, Baekhyun and Xiumin are seen in this photo provided by music cable channel Mnet. (PHOTO NOT FOR SALE) (Yonhap) |
SEOUL, June 26 (Yonhap) -- The ongoing contractual dispute between EXO members Chen, Baekhyun, and Xiumin (collectively known as CBX) and their agency SM Entertainment has escalated as CBX has filed legal action against SM executives.
On the 26th, sources in the music industry revealed that CBX and their agency, INB100, filed a complaint on the previous day with the Seoul Seongdong Police Station against SM's Chief A&R Officer Lee Sung-soo and Co-CEO Tak Young-jun. They are accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
CBX alleges that SM had promised to secure a distribution fee rate of 5.5% with the distributor Kakao, but failed to fulfill this promise. Additionally, they claim that SM has unjustly profited by taking 10% of the revenue generated from the members' individual activities.
The conflict between CBX and SM dates back to June of last year when CBX raised issues about unclear revenue settlements. They initially resolved their differences under the condition that SM would receive 10% of their royalties. However, CBX has recently reignited the dispute, arguing that SM's demands are unreasonable.
In response, SM maintains that the exclusive contracts with CBX are still valid. SM claims that they have allowed CBX to pursue individual activities through personal corporations and that CBX agreed to pay 10% of their individual corporation revenues to SM. SM insists that CBX adhere to the terms of their agreement.
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| ▲ Chen, Baekhyun and Xiumin, members of popular K-pop boy group EXO, are seen in this photo provided by SM Entertainment. (PHOTO NOT FOR SALE) (Yonhap) |
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