Chen, Baekhyun and EXO's Xiumin's Legal Representative Detail SM's Alleged Rule Violation in Press Conference

Updated June 10 KST:

On June 10, representatives of EXO's Chen, Baekhyun, and Xiumin (EXO-CBX) held a press conference to relay their official position regarding their dispute with SM Entertainment.

Cha Ga Won, chairwoman of p_Arc Group, Kim Dong Joon, CEO of INB100, and lawyer Lee Jae Hak were present at the press conference. INB100 is the label that manages the individual activities of Chen, Baekhyun and Xiumin.

At the press conference, lawyer Lee Jae Hak asserted, “SM Entertainment does not meet the 5.5% commission rate for albums and music guaranteed to INB100 under the settlement terms. The lawyer continued: “They are engaging in unfair practices by demanding 10 percent of artists' revenues generated from individual activities such as individual album releases, concerts and advertisements.”

Lawyer Lee Jae Hak explained at the press conference that although they sent a content certification to SM Entertainment in April regarding the policy violation, they have not yet received a response. He said: “The agreement no longer makes sense, so we will cancel the agreement concluded on June 18 (for the reasons of) fraud or terminate it for non-compliance with obligations. We will also consider filing a criminal complaint and a complaint with the Korea Fair Trade Commission regarding the process of signing the agreement.

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Original article:

Representatives of EXO's Chen, Baekhyun and Xiumin (EXO-CBX) will hold a press conference regarding SM Entertainment.

On June 10, EXO's Chen, Baekhyun, and Xiumin announced that their agency INB100 would hold a press conference later that day at 4:00 p.m. KST to discuss the alleged unfair treatment by SM Entertainment. Cha Ga Won, chairwoman of p_Arc Group, Kim Dong Joon, CEO of INB100, and lawyer Lee Jae Hak will be present at the press conference.

A representative for INB100 said, “Last year in June, EXO-CBX and SM Entertainment issued a joint statement announcing that they had amicably resolved the legal dispute regarding the termination of exclusive contracts and filed a complaint to the Korea Fair Trade Commission (KFTC). At the time, the situation was resolved through negotiation as both parties felt it was more important than anything else that EXO continue its activities normally. According to the agreement at the time, INB100 was established (to manage) individual artists' activities as well as activities under EXO-CBX.

INB100 continued, “SM Entertainment disregarded the negotiated terms that formed the premise of the deal and demands 10% of the revenue from artists' individual activities from INB100. INB100 sent a certification of the content regarding the illegal treatment, but SM Entertainment has yet to respond for over two months.

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