▲ Chen, Baekhyun and Xiumin, members of popular K-pop boy group EXO, are seen in this photo provided by SM Entertainment. (PHOTO NOT FOR SALE) (Yonhap)

 

SEOUL, June 13 (Yonhap) -- SM Entertainment has filed a lawsuit against EXO members Chen, Baekhyun, and Xiumin, collectively known as CBX, demanding that they honor their contract regarding the payment of 10% royalties on sales.

 

According to the music industry on the 13th, SM submitted a lawsuit to the Seoul Eastern District Court against CBX the previous day, seeking the enforcement of the contract.

 

An SM representative confirmed, "It is true that we have submitted a lawsuit against CBX to the court. We will respond according to the law and principles."

 

CBX, who had renewed their contracts with SM, had previously clashed with the company over the provision of accounting records. This conflict was temporarily resolved in June last year when CBX agreed to pay 10% of their sales as royalties to SM. However, the dispute resurfaced recently when CBX held a press conference, arguing that the demand was unfair.

 

CBX claims that SM had promised to ensure a 5.5% commission rate through their album and music distribution partner, Kakao, but failed to keep this promise.

 

In response, SM maintains that their exclusive contract with CBX is still valid. They stated, "We permitted individual activities through personal corporations on the condition that CBX pays 10% of their individual corporation's sales to SM," adding that CBX had signed the agreement voluntarily.

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