SM Entertainment and EXO-CBX's second mediation fails, returning to litigation over contract disputes and financial claims.
October/2/2025 18:15
Regarding the fulfillment of contracts, a dispute is ongoing between SM Entertainment and EXO's Chen, Baekhyun, and Xiumin (EXO-CBX). The second mediation took place today (the 2nd) and again ended in failure. The 15th Civil Division of the Eastern District Court of Seoul (Chief Judge Cho Yong-rae) held the second mediation session for the contract fulfillment and settlement claims lawsuits filed by SM and EXO-CBX against each other. Following the first mediation session held on the 23rd of last month, only the legal representatives of both sides attended today's session. Again, both parties did not reach an agreement. As a result, the mediation ended in failure, returning to the main lawsuit. In 2023, EXO-CBX notified SM of the termination of their exclusive contract, citing that SM had not properly provided settlement materials for revenue. They also filed a complaint with the Fair Trade Commission against SM. Subsequently, both parties agreed to maintain the exclusive contract while the three members would independently pursue individual activities with a new agency, INB100. However, in June of last year, SM filed a lawsuit for contract fulfillment, claiming EXO-CBX did not adhere to their promise to pay 10% of individual activity revenues. In response, EXO-CBX filed a counterclaim, arguing that SM did not honor the promised 5.5% album distribution fee rate during the re-contracting process and sought settlement amounts based on actual financial materials during their time with SM.
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