Nearly precisely one 12 months after Chen, Baekhyun and Xiumin of Ok-pop boy band EXO first pursued authorized motion towards their longtime label and administration company, SM Leisure, over contractual points, an organization established by the trio has now declared “full-on warfare” on the Ok-pop large, in line with Korean media stories.
Representatives for INB100, the newly established firm Baekhyun based in 2023 — which signed Chen and Xiumin for his or her respective solo careers, although all three stay contracted beneath SM for EXO’s group actions — held what has been described as an “emergency press convention” in central Seoul on Monday (June 10). Chen, Baekhyun and Xiumin weren’t in attendance.
In the course of the press convention, as reported by Korea JoongAng Each day, three reps for the trio — who additionally carry out collectively in a splinter unit known as EXO-CBX — mentioned that Chen, Baekhyun and Xiumin have been in a monthlong dispute over charges and contracts with SM. Cha Ga-won, president and majority shareholder of INB100’s holding firm, One Hundred, and one of many representatives to talk on the press convention, claimed a former SM CEO verbally promised in a recorded settlement to cost INB100 solely a 5.5% price for distributing its music releases via Kakao (the present majority shareholder of SM Leisure), versus the 15% to twenty% p.c sometimes charged to firms outdoors Kakao’s umbrella. However Cha says SM is now demanding a ten% royalty price for the members’ use of the company’s mental property (such because the members’ stage names, in addition to EXO and EXO-CBX) in alternate for the discounted distribution price.
“We declare a full-on warfare towards SM Leisure, which has made a promise that it couldn’t hold and dedicated what might be perceived as fraud,” mentioned Cha in the course of the press convention, throughout which INB100 representatives additionally demanded that SM disclose the breakdown of EXO’s earnings — reigniting the identical contract points that had been reportedly resolved final June. The representatives moreover claimed that INB100 despatched a proper letter of grievance to SM Leisure over two months in the past in regards to the charges and the earnings disclosure however had not acquired a response.
On Monday night, SM Leisure refuted the allegations in a press launch. Based on SM, an outdoor firm imposed the ten% mental property price following courtroom mediation over previous points with earlier EXO members who had exited the label whereas nonetheless beneath contract. (Between 2014-2105, three different EXO members left the group and broke their contracts with SM to concentrate on the China market.) SM additionally claims EXO-CBX’s contract continues to be legitimate, and that the trio advantages from the EXO model however will not be fulfilling their contractual obligations with SM regardless of the company performing in good religion with a decrease distribution price.
SM’s assertion additionally alleges that Chen, Baekhyun and Xiumin had been “poached” by Cha and MC Mong — a one-time rapper-producer in Korea who fell out of public favor following allegations that he had dodged the nation’s obligatory army draft, and who went on to launch companies of his personal, together with BPM Leisure, which now homes ex-SM artist Taemin of SHINee.
SM added that it didn’t beforehand reply to INB100’s letter of grievance to keep away from distracting from new EPs launched by EXO members Chen, D.O., and Suho over the previous month. The corporate concluded its assertion by saying that it’ll reply with authorized motion versus attempting to sway public opinion via press conferences.
