Chen, Baekhyun and Xiumin, members of K-pop boy band EXO who also compose the subunit EXO-CBX, have declared war against their own agency through a lawsuit.
The three K-pop stars’ solo activities are being managed by INB100, an agency founded by Baekhyun but is now under Big Planet Made. Their group activities as members of EXO are being managed by SM Entertainment.
EXO-CBX members (from left) Chen, Baekhyun and Xiumin (SM Entertainment)
Last June 10, EXO-CBX’s side held a press conference stating that it was unfair for SM Entertainment to demand 10 percent royalty from their individual activities while it failed to comply with its promise of providing a 5.5 percent music distribution fee through Kakao Entertainment, a company under Kakao, SM Entertainment’s parent company.
This escalated into a legal battle when SM Entertainment filed a lawsuit against Chen, Baekhyun and Xiumin on June 12 demanding them to pay the 10 percent royalty fee.
“What INB100 argues is an unfair act on our side is different from the truth. The item was discussed as a gesture that we would help CBX negotiate with the distributor. We never had the power to decide the distributor’s fee rate. CBX did in fact ask that a clause regarding the distribution fee be put in the agreement, but we explained that it couldn’t be included because we just don’t have the power and took it out, which means that no such clause is included in the agreement,” said SM Entertainment, Korea JoongAng Daily reported.
As a result, Chen, Baekhyun and Xiumin will file a countersuit against SM Entertainment and report it to the Fair Trade Commission (FTC) in South Korea.
"We will prove, in court, that SM's payment system is wrong. We will also report the unfair exclusive contract [of SM Entertainment] to the FTC and have it judged by the justice system," said EXO-CBX.