Kapanlagi.com - The legal conflict between the EXO sub-unit, CBX (Chen, Baekhyun, and Xiumin), and their former agency, SM Entertainment, returns with a new chapter. The South Korean court has consistently rejected six legal lawsuits and administrative disputes filed by EXO-CBX.
This ruling clearly states that there is no evidence of SM Entertainment being involved in the alleged contract violation lawsuit with EXO-CBX. This court decision certainly has a significant impact on both parties.
On the other hand, this defeat is a severe blow to EXO-CBX, who previously accused SM Entertainment of unfair contract practices and lack of payment transparency. What is the complete chronology and what are the implications of this court ruling? For more details, check here KLovers.
Find more news about EXO at Liputan6.
Latest news on EXO-CBX (credit: weareone.exo)
The EXO CBX sub-unit (Chen, Baekhyun, and Xiumin) lost in six consecutive legal and administrative disputes against SM Entertainment. Official court and government records show that all of their claims were consistently dismissed.
In a recent report as cited by Allkpop, the court rejected EXO-CBX's main claims regarding SM Entertainment's failure to provide settlement data and unfair contracts.
Previously, requests to examine and copy accounting books were also denied. The EXO-CBX side had appealed twice, but the court rejected those requests.
The lawsuit of EXO-CBX against SM Entertainment (credit: weareone.exo)
The court, police, and regulatory agencies, including the Korea Fair Trade Commission (KFTC) and the Ministry of Culture, Sports and Tourism (MCST), found no evidence of alleged illegal or deceptive behavior by SM Entertainment.
Reports submitted to the Ministry of Culture, Sports and Tourism (MCST) and the Korea Fair Trade Commission (KFTC) also found no violations. MCST did not find any breach of exclusive contracts or the Culture and Arts Industry Act, as SM periodically disclosed settlement data to EXO-CBX.
The conflict between EXO-CBX and SM Entertainment began in 2023, when the three accused SM of unfair contract terms. On June 1, 2023, Chen, Baekhyun, and Xiumin officially filed a lawsuit to terminate their exclusive contract with SM Entertainment, claiming unfairness.
The members accused SM Entertainment of imposing a slave contract that required them to sign a contract for approximately 17 or 18 years. Additionally, EXO-CBX demanded transparency in income calculations, but SM Entertainment did not provide transparency until March 2023. SM Entertainment also responded by accusing external parties of influencing Chen, Baekhyun, and Xiumin to terminate their contracts.
Chronology of the EXO-CBX and SM Entertainment dispute (credit: Instagram.com/@INB100_official)
After the initial dispute, both parties reached an agreement known as the 6·18 Agreement. This agreement affirms the validity of the existing contracts but specifies the division of activities. Full group activities of EXO remain under SM Entertainment, while unit or solo activities of EXO-CBX will operate under their own independent label, INB100.
In the agreement, it was agreed that SM Entertainment would receive 10% of the revenue from EXO-CBX's individual activities. This agreement is expected to serve as a middle ground to maintain the professional relationship between the agency and the artists, although it later triggered new conflicts in the future.
In January 2024, Baekhyun established a new agency called INB100, and Chen and Xiumin joined on January 8, 2024. However, in June 2024, INB100 held a press conference to reveal allegations of contract violations by SM Entertainment.
INB100 claims that SM Entertainment demanded 10% of the revenue from the artists' individual activities, whereas the initial agreement was for a 5.5% distribution fee promised by SM to the music distributor. These allegations have once again heated up the relationship between EXO-CBX and SM Entertainment, triggering a new chapter in their legal dispute.
SM Entertainment sues EXO-CBX (credit: Instagram.com/@INB100_official)
In response to the allegations from INB100 and the failure to make payments, SM Entertainment is not staying silent. SM Entertainment is suing Chen, Baekhyun, and Xiumin to fulfill the previously agreed contract and has filed a lawsuit in the Eastern District Court of Seoul.
This lawsuit demands the payment of 10% that is overdue according to the terms of Agreement 6·18. In response, EXO-CBX plans to counter-sue SM Entertainment over this civil lawsuit, as well as report the unfair exclusive contract.
Failed mediation (credit: Instagram.com/@INB100_official)
The mediation process between EXO-CBX and SM Entertainment in the Eastern District Court of Seoul did not yield results. The first mediation failed to reach an agreement, followed by the failure of the second mediation. This latest news has sparked mixed reactions from fans, including Korean netizens.
The defeat in these six separate court hearings or administrative processes has a significant impact on the activities of the EXO group. Recently, EXO announced they will be making a comeback and releasing an album. However, Chen, Baekhyun, and Xiumin will not participate in the EXO group's comeback.
The fan meeting "EXO'verse" in December 2025 and the plan for the release of the 8th studio album in 2026 will involve six members (Suho, Chanyeol, D.O., Kai, Sehun, and Lay), without including Chen, Baekhyun, and Xiumin. This decision marks a new era for the EXO group with a different formation.
1. What was the court's decision regarding the lawsuit by EXO-CBX against SM Entertainment?
The South Korean court has rejected six legal claims or administrative disputes filed by EXO-CBX against SM Entertainment, stating there was no evidence of alleged illegal practices or fraud by SM.
2. What are the main claims made by EXO-CBX?
EXO-CBX claims that SM Entertainment failed to provide settlement data, imposed unfair contracts or 'slave contracts', and demanded transparency in income calculations.
3. How does the "6·18 Agreement" regulate EXO-CBX's activities?
The "6·18 Agreement" allows the full activities of the EXO group to remain under SM Entertainment, while the unit or solo activities of EXO-CBX will run under their independent label, INB100, with SM receiving 10% of their personal income.
4. What is the impact of this legal defeat on the activities of the EXO group?
EXO will recently be making a comeback with six members, including a fan meeting and the release of a new album without Chen, Baekhyun, and Xiumin.
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