EXO-CBX members Chen, Baekhyun and Xiumin had assets worth 2.6 billion won subject to provisional seizure.
On the 11th, the music industry reported that recently SM Entertainment (hereinafter SM) provisionally seized the assets of Chen, Baekhyun and Xiumin over two days on the 9th and 10th. The seized assets include Chen's dwelling jeonse deposit claim, Baekhyun's APT. in Acheon-dong, Guri, Gyeonggi, and Xiumin's APT. in Hannam-dong, Yongsan-gu, Seoul.
SM claimed 300 million won, 1.6 billion won and 700 million won from Chen, Baekhyun and Xiumin respectively through this provisional seizure, totaling 2.6 billion won. A provisional seizure is a measure that prevents the person from disposing of property so the creditor can receive payment, and it was intended to preserve claims to 10% of personal activity revenues arising under the agreement reached in June 2023.
After re-signing, Chen, Baekhyun and Xiumin notified SM of termination of the exclusive contract through legal representatives in June 2023. They cited unreasonably long contract periods and opaque accounting as reasons. SM replied that it had cooperated by allowing the artists to visit the company at any time to confirm accounting materials if they wished, that it faithfully followed the standard exclusive contract regarding contract period, and that the contract period, validity and legitimacy had already been recognized by the Supreme Court. It also said the three renewed their contracts after sufficient consultation with the company while receiving assistance from attorneys at a large law firm in a situation where renewal was not at all forced ahead of the end of the existing exclusive contract.
Thereafter, the two sides mutually agreed that the three members' EXO group activities would remain with SM, while individual and unit activities would proceed under independent label INB100 on the condition that 10% of individual activity revenues be paid to SM. However, after a recording that contained MC MONG's suspicious tampering remark was disclosed, the following year INB100 joined One Hundred, a subsidiary led by MC MONG, raising tampering allegations.
In particular, EXO-CBX said SM did not honor an agreement to guarantee a 5.5% distribution fee rate for records and digital music to the independent agency INB100, and that SM took a stance that it could not fulfill the agreed payment of "10% of individual activity revenues," deepening the conflict. EXO-CBX sued SM executives on fraud charges, but they were not indicted due to insufficient evidence.
Also, last October the conflict resurfaced over EXO-CBX not joining EXO's full-group activities. EXO-CBX said that after the second mediation hearing in the civil suit over some 600 million won related to contract performance, it had "clearly communicated its willingness to agree by accepting all conditions proposed by SM for an end-of-year full-group EXO comeback," but SM rebutted that "we had been winning all disputes to date, and the only thing we requested of the three was to pay 10% of individual activity revenues as set out in the June 18, 2023 agreement, but this has not yet been fulfilled."
SM said, "Participation in team activities was not only greatly undermined by numerous unreasonable disputes that destroyed mutual trust, but also caused significant damage to the team called EXO and inflicted wounds on fans and members, so it is natural that the existing agreement be fulfilled and that serious efforts by the three to restore trust come first," and added, "Contrary to the three's claim that they had clearly communicated their willingness to agree by accepting all conditions presented by us after the Oct. 2 second mediation hearing, they filed an objection on the 16th."
Meanwhile, amid the exclusive contract dispute between EXO-CBX and SM, EXO held the fan meeting 'EXO'verse' in December last year and released the eighth studio album REVERXE on Jan. 19. EXO members, who promoted with the title track "Crown," are scheduled to hold "EXO PLANET #6 - EXhOrizon in SEOUL" at KSPO DOME for three days from Apr. 10 to 12.
[Photo] OSEN DB
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