▲ EXO's Chen (L), Baekhyun and Xiumin (R) are seen in this photo provided by SM Entertainment. (PHOTO NOT FOR SALE) (Yonhap)

 

SEOUL, June 10 (Yonhap) -- Baekhyun, Xiumin, and Chen (members of EXO-CBX) have stated that SM Entertainment has failed to adhere to the previously agreed royalty rate for album and music sales, which was set at 5.5%, and instead demands 10% of their earnings. 

 

This announcement was made by their representative, lawyer Lee Jae-hak, during a press conference held at the Shilla Hotel in Seoul on the 10th.

 

Lawyer Lee argued that SM Entertainment is not honoring the terms agreed upon with INB100, the members' agency, regarding the 5.5% royalty rate for album and music sales. He also highlighted that SM is unfairly demanding 10% of the members' individual revenue from activities such as solo albums, concerts, and advertisements.

 

▲ From Left: Lawyer Lee Jae-hak, p_Arc Group chairwoman Cha Ga-won and INB100 CEO Kim Dong-joon attend the press conference in Seoul on June 10, 2024. (Yonhap)

 

The three members of EXO-CBX had renewed their contracts with SM but later notified the company of contract termination due to issues such as improper provision of settlement data. They also filed a complaint with the Fair Trade Commission against SM. However, both parties later agreed to maintain their contracts with SM, while the members' individual activities would be managed independently by INB100.

 

Lee emphasized that the agreement was based on a promise made by SM CAO (Chief A&R Officer) Lee Sung-soo to apply a 5.5% distribution fee through the distributor Kakao. He presented evidence of conversations between Lee Sung-soo and Cha Ga-won, Chairwoman of the p_Arc Group, to support this claim.

 

Despite sending a legal notice in April highlighting SM's breach of the agreement, Lee stated they received no response. He demanded that SM acknowledges their failure to adhere to the 5.5% royalty rate, ceases demands for 10% of individual earnings, and warned of potential legal actions, including criminal charges and further complaints to the Fair Trade Commission.

 

▲ P_Arc Group chairwoman Cha Ga-won speaks during a press conference in Seoul on June 10, 2024. (Yonhap)

 

Cha Ga-won, present at the press conference, expressed her readiness for a renewed confrontation with SM, demanding transparency in the financial settlements with the members. INB100, now a subsidiary of One Hundred, a company co-invested by Cha and MC Mong, refuted allegations of tampering (pre-contract expiration contact) involving the members.

 

Cha clarified that Baekhyun himself established and operated INB100, dismissing any claims of tampering.

 

For further details, refer to the official statements and press releases from SM Entertainment and INB100.

 

 

 

 

 

 

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