EXO members sue SM Entertainment over financial disputes, alleging unpaid IP usage fees and unfulfilled promises.
June/26/2024 13:17
EXO's Baekhyun, Xiumin, and Chen (EXO-CBX) have filed a lawsuit against SM Entertainment's current co-CEO Tak Youngjoon and current CAO Lee Seongsu. Today (26th), according to the legal and music industry, Baekhyun, Xiumin, Chen, and their agency INB100 filed a lawsuit on the 25th against CEO Tak Youngjoon and Lee Seongsu for suspicion of law violations (fraud) related to specific economic crimes. Prior to this, CBX publicly released a phone call record between Chairman Cha Gawon, who established ONE HUNDRED, the parent company of INB100, and Lee Seongsu on June 14th last year. SM did not fulfill the promise regarding album distribution fees. Last year in June, at the time of signing the agreement, Lee Seongsu promised to reduce the normal 15% distribution fee to 5.5%, but did not keep this promise. However, such promises were not officially stated in the agreement and were known as verbally agreed upon matters. CBX claimed that "the guarantee of the distribution fee rate was a prerequisite for signing the agreement. We have additional evidence," and "despite the past negotiations being settled, SM did not fulfill the promised album distribution fee rate of 5.5% and made unfair demands for 10% of the artists' personal album sales, advertising revenue, etc. Despite SM breaking the agreement conditions first last year, they demand 10% of the sales from the artists." They have not paid the IP (EXO's sound sources owned by SM) usage fees to SM from January to June this year. They were obligated to pay SM the sales including the IP usage fees for the first quarter of 2024 by early March, but have not fulfilled this. The agreement signed by CBX in the presence of legal representatives clearly states that CBX must provide 10% of their personal activity sales to SM every quarter. Despite there still being time left in the re-contract period with CBX, Baekhyun was allowed to establish a personal corporation and engage in personal activities through it. According to Newsen, the 10% sales include IP usage fees related to EXO. In connection with this, INB100, CBX's agency, explained to Newsen on the 14th that "there was no content in the agreement last June that allowed us to use IP and give something in return. Therefore, it is an unreasonable situation to claim that we did not pay the IP usage fees when we were not asked by SM to pay them." They further stated, "We proposed in the press conference that we are willing to pay the IP usage fees to SM," and added, "However, SM has not responded to our position and is using the media to portray us as non-payers of IP fees." SM is expected to continue to respond in accordance with the law and principles rather than issuing additional official comments regarding the management being sued. Prior to this, on the 12th, SM filed a lawsuit against CBX at the Seoul Eastern District Court for breach of contract. The complaint submitted by SM stated that they could not tolerate CBX's unreasonable behavior any longer and filed a lawsuit seeking the fulfillment of the agreement temporarily. SM revealed to Newsen on the 13th that they will respond in accordance with the law and principles.
Related Articles
SM Entertainment announces record Q4 2025 results, with sales of 319 billion won and operating profit of 54.6 billion won, surpassing market expectations. The growth is attributed to successful world tours of major artists and a focus on sustainable growth strategies under 'SM NEXT 3.0'.
On the morning of the 15th, EXO returned to South Korea via Incheon International Airport after the 'SMTOWN LIVE 2025-26' concert in Bangkok. They are set to travel to Jeju Island for a new season of the variety show 'EXO's Amida World Travel' starting March 4. Additionally, a report highlights that 65 performers participated in the first SMTOWN concert in Fukuoka, featuring stunning collaborations and J-POP covers.
On the afternoon of the 13th, EXO departed through Incheon International Airport for Thailand to participate in 'SMTOWN LIVE 2025-26 [THE CULTURE, THE FUTURE] in BANGKOK.' The concert is scheduled for February 14, 2026, and will be their first performance in Bangkok in 13 years. Additionally, 65 artists will perform at the first SMTOWN concert in Fukuoka, featuring stunning collaborations and J-POP covers.
Kstyle and IDOLCHAMP reveal the results of the 'Strongest Visual Ranking' after a voting period from January 26 to February 9, 2026. Fans voted for their favorite idols across three age categories: TEENS, 20s, and 30s+. Notably, &TEAM's MAKI and K topped the TEENS and 20s categories. Original trophies will be awarded to the winners!
On the afternoon of the 9th, EXO returned to Korea via Incheon International Airport after finishing their overseas schedule. This article is based on local media coverage. Please note that there may be variations in the photos. Additionally, EXO is set to travel to Jeju Island for a new season of the variety show 'EXO's Amida World Travel,' premiering on March 4.
On the morning of the 6th, EXO departed for China via Incheon International Airport for overseas schedules. This article is based on local media coverage. Additionally, EXO will release a new season of the variety show 'EXO's Amida World Travel' starting March 4. Also, 65 performers will participate in the first SMTOWN concert in Fukuoka, featuring a spectacular one-night collaboration and J-POP covers.
Tao, the former EXO member, recently shared updates on his life through Hong Jin-kyung's YouTube channel. He revealed his marriage and his venture into the feminine hygiene product business, emphasizing safety and transparency in production. He has sold 150 million units and invested significantly in his factories, despite low initial profits. His new life as a husband is also highlighted, with mentions of his wife's cooking and their recent wedding.
EXO's reality show 'EXO Amida World Travel' is back for Season 5, starting March 4. The season features their Jeju Island trip, showcasing their adventures and challenges. The show will be available on Mnet, Wavve, and various international streaming services, with episodes also released on YouTube a week later. EXO will also hold their sixth concert tour in Seoul from April 10-12.
During an online event for SBS's new variety show, Kai candidly shared that EXO members didn't react much to his participation. He humorously noted their lack of response and suggested that Chanyeol would be a great fit for the show, praising his recent growth and newfound humor.
Comedian Kim Yong-chul has passed the JLPT N3 exam with a score of 95, sharing his results on Instagram. He reflects on his previous failure in the same exam and considers attempting the N2 level next. He also shares advice from singer Sung Si-kyung about studying effectively for the exam.
