EXO's INB100 vs SM Entertainment: 4 major key points from the emergency meeting

Chen, Baekhyun, and Xiumin of EXO (also known as EXO-CBX) have spoken out against their treatment by SM Entertainment at EXO's INB100 press conference. On June 10 at 4 PM KST, their agency, INB100, held an emergency news conference. It was attended by attorney Lee Jae-hak, INB100 CEO Kim Dong-jun, and p_Arc Group chairperson Cha Ga-won.

According to an INB100 official, in June of last year, EXO-CBX and SM Entertainment released a joint statement in which they stated the peaceful settlement of a legal dispute, including the termination of exclusive contracts and the filing with the Korea Fair Trade Commission (KFTC).

The two sides worked out a compromise that would allow EXO to continue their activities without interruption. The artists' (Xiumin, Chen, and Baekhyun) individual endeavors and collective operations as EXO-CBX were to be overseen by INB100 per the agreement's stipulations.

At their most recent news conference, however, INB100 laid the blame on SM Entertainment, saying that the company had ignored the agreed-upon terms of the deal.

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4 Takeaways from EXO's INB100 press conference

1) SM pushed EXO to re-sign in the military

EXO's INB100 Press Conference revealed that SM Entertainment pushed the members to re-sign their contracts while they were enlisted in the military service.

On May 7, 2019, Xiumin enlisted and completed his service on December 6, 2020. He finished his military service before everyone else in the group. On October 26, 2020, Chen enlisted and returned on April 25, 2022. Baekhyun joined the military as a service worker on May 6, 2021. His release date was February 5, 2023.

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2) CBX wasn't paid for recent EXO activities

EXO's INB100 is in charge of managing the individual endeavors of Baekhyun, Xiumin, and Chen, in addition to their joint endeavors as EXO-CBX.

On the other side, SM Entertainment was agreed upon to be in charge of managing CBX’s collective endeavors under the EXO title. But during the conference, EXO’ INB100 disclosed that CBX wasn’t paid for their recent activities as part of EXO.

A large number of fans spoke out in favor of CBX, and many also noted that this was not the first time SM Entertainment has been involved in a legal dispute. 3 members of the boy group TVXQ (Kim Jun-su, Kim Jae-joong, and Park Yoo-chun) left the group in 2010 after falling out with SM over their contracts.

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3) CBX agreed to provide SM 5.5% of profits but was demanded 10%

Furthermore, EXO's INB100 alleged that SM Entertainment has disregarded the agreed-upon terms, which formed the basis of their contract. They allegedly demanded 10% of the money from the artists' separate activities that they are undertaking under their independent agency, INB100.

As stated by INB100, SM Entertainment and CBX have agreed to share only 5.5% of their profits, should they choose to release their music through Kakao, the largest shareholder of SM. However, as per attorney Lee Jae-hak, the term was only verbally promised and not stated in the written contract.

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4) CBX to file a complaint against SM Entertainment

Moreover, SM Entertainment has not provided a response for more than two months, despite the fact that INB100 had sent a formal letter of complaint about this unfair treatment.

It was reported by INB100 during the press conference, that they are now making preparations to submit a legal complaint against SM Entertainment.

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More about EXO's INB100

Xiumin, Chen, and Baekhyun of EXO, started a new chapter in their careers in January 2024 when they signed with Baekhyun's independent label, INB100. In subsequent reports, it was stated that EXO's INB100 will get involved in a cooperative partnership with SM Entertainment in the future.

The problematic contract and the members' long-held objection towards SM Entertainment led to the formation of this label. As INB100, they want to highlight the members' individual musical colors and styles.