EXO's CBX vs. SM Entertainment, first mediation session in ₩600M civil case scheduled for September 23: All you need to know

EXO
EXO's CBX (Image via X/@SMTOWNGLOBAL)

On Monday, September 22, the South Korean media outlet, Newsis, released a report stating that EXO's CBX and SM Entertainment's first mediation session for the 600 million KRW civil case is scheduled for September 23 at 2:45 PM at the Seoul Eastern District Court. The case was referred by the 15th Civil Affairs Department of the Seoul Eastern District Court on September 1, and a mediation date was set following the same.

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For those who are unaware, the mediation is for the lawsuit between SM Entertainment and EXO's CBX on the grounds of the settlement payments demanded by the members, amounting to 600 million KRW. Back in June 2023, CBX filed a lawsuit against SM Entertainment for its lack of transparency in the artists' profits and the overdue payments that were unsettled by the agency for many years.

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The three artists also pointed out that they have been coerced into signing alleged slave contracts. While the EXO members were first urged to sign an exclusive contract that lasted over 12 to 13 years, the renewal called for an extension of another 17 to 18 years. However, according to South Korea's Fair Trade Commission (KFTC), entertainment contracts are strictly limited to seven years.

On the other hand, SM Entertainment has denied these allegations and explained that they didn't disclose the documents of the artists' payments and settlements due to their suspicion of another agency trying to poach the members. Therefore, they requested evidence from the members to showcase that they didn't sign with other agencies, since it would violate their contract with SM.

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The issue was resolved through the two's common agreement that EXO's CBX members will continue to be a part of SM Entertainment as EXO members while they joined INB100, Baekhyun's agency, through their individual contracts. However, the three members filed another lawsuit in June 2024 by highlighting that SM failed to respect the agreement and maintain the 5.5% album and music distribution commission that the agency promised.


All you need to know about EXO's CBX's lawsuit against SM Entertainment for alleged unfair profit distribution

Following the previous dispute that took place between the two parties based on the exclusive contract and settlement issues, another dispute between EXO's CBX and SM Entertainment landed on the internet. In June 2024, the legal representative of CBX, Lee Jae-hak, held a press conference where they discussed SM Entertainment's alleged breach of the settlement.

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He stated the following,

“SM Entertainment is not fulfilling the 5.5 percent commission rate for albums and music guaranteed to INB100 as part of the settlement condition. They are engaging in unfair practices by demanding 10 percent of the artists’ revenue generated from individual activities such as individual album releases, concerts, and advertisements.”

Therefore, he concluded his statement by revealing that the previous negotiations they had no longer stand valid and they will be moving forward with a lawsuit. Following the same, INB100 released a statement communicating that SM's response to the press conference was to file a lawsuit against the three members.

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Therefore, the EXO's CBX members moved forward by filing a complaint with the Fair Trade Commission to receive a fair judgment on SM Entertainment's unfair treatment of the exclusive contract. Therefore, the first mediation on the lawsuits filed by both parties will take place on Tuesday, September 23.

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Edited by Aishwarya Sai
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