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Manila Bulletin devider Entertainment devider Hallyuwood devider First mediation on contract dispute between SM Entertainment, EXO-CBX fails

First mediation on contract dispute between SM Entertainment, EXO-CBX fails

Published Sep 25, 2025 02:35 pm

At A Glance

  • Second mediation hearing set on Oct. 2
EXO-CBX members (from left) Chen, Baekhyun and Xiumin (X)
EXO-CBX members (from left) Chen, Baekhyun and Xiumin (X)

The first mediation regarding the contract issue between Korean agency SM Entertainment and K-pop artists Chen, Baekhyun and Xiumin, members of EXO's unit EXO-CBX, failed. 

Last Sept. 23, the 15th Civil Affairs Department of the Seoul Eastern District Court held the first mediation for the lawsuits filed by SM Entertainment and EXO-CBX about the contract and settlement money. 

Only the legal representatives of both sides attended the mediation hearing that was held for about 30 minutes. 

Korean media reported that in 2023, EXO-CBX terminated their exclusive contract and filed a complaint with Korea’s Fair Trade Commission (FTC), citing SM Entertainment’s failure to provide proper revenue settlement data.

EXO-CBX members (from left) Xiumin, Baekhyun and Chen (X)
EXO-CBX members (from left) Xiumin, Baekhyun and Chen (X)

The two parties agreed to maintain their exclusive contracts, but the members' individual activities will be handled by their new agency, INB100. 

However, SM Entertainment filed a lawsuit against EXO-CBX, claiming that their promise to pay 10 percent of their individual activity sales was not honored. The amount in dispute is approximately 600 million won (about $428,000).

The court compiled the lawsuits filed by both parties and referred them to mediation. After the failure of the first mediation, another mediation hearing will be held on Oct. 2. 

In June last year, EXO-CBX 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. 

With the issue, fans are wondering if EXO-CBX members will be included in EXO’s activities planned in December. 

EXO previously announced group activities with a December target. 

According to Korea's Judicial Information for Foreigners and Immigrants website, "Civil mediation procedure is simplified legal proceedings to resolve disputes between the parties."

"For civil mediation, a judge, a standing commissioner, or a commissioner who is a member of the mediation committee at the court with jurisdiction, hears arguments of the parties in dispute and then encourage settlement. Ultimately, the goal of judicial mediation is to help the parties come to a settlement. The civil mediation procedure is simpler, quicker and less costly than the regular litigation procedure. Due to its efficiency in costs and simple procedure, civil mediation is widely recommended," it added.

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