Three members of K-Pop group EXO, Baekhyun, Chen, and Xiumin, are filing a complaint against their label SM Entertainment over the company’s alleged “unfair” demands for 10% of the trio’s earnings from individual activities outside of the company. The complaint was announced during a press conference held by EXO’s sub-label INB100, whose CEO and chairman, Kim Dong-jun and Cha Ga-won, respectively, both spoke at the event alongside INB100’s legal representative and Baekhyun, Chen, and Xiumin themselves.
According to INB100, the K-Pop agency has “changed its position” and “defaulted on the 5.5% album distribution fee it promised,” while also now “demanding 10% of sales from artists’ personal activities.” INB100 and their lawyers are claiming that this constitutes “unfair action” and are asking SM to cease such demands as they are not in line with an agreement reached last year. The three EXO members involved had previously resolved legal issues with SM based on the understanding that the terms of the agreement would be upheld.
However, the demands made by SM Entertainment are not the only issue at hand. INB100’s legal counsel also alleged that there was a clause in the agreement between SM and CBX (the trio’s unit within the larger EXO group) stating that CBX was obligated to remunerate SM Entertainment 10% in royalties from their solo activities, despite both parties first agreeing to a 5.5% fee. INB100 has contested this on the grounds that CBX established their own label and independently raised sales under their own name, thus making them exempt from paying the higher fee.
INB100 concludes by calling for SM Entertainment to provide data concerning CBX’s existing contract and warning of the possibility of legal action if the company does not comply. The dispute highlights the ongoing push and pull between K-Pop agencies and the artists under their management in the debate around fair compensation and freedom to pursue individual projects.
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