Practically especially 1 year quickly soon after Chen, Baekhyun and Xiumin of K-pop boy band EXO 1st pursued authorized action towards their longtime label and administration agency, SM Enjoyment, about contractual issues, a business enterprise founded by the trio has now declared “full-on war” on the K-pop enormous, in accordance to Korean media research.

Associates for INB100, the newly recognized business enterprise Baekhyun founded in 2023 — which signed Chen and Xiumin for their respective solo careers, even although all 3 continue getting contracted beneath SM for EXO’s group factors to do — held what has been explained as an “emergency push conference” in central Seoul on Monday (June 10). Chen, Baekhyun and Xiumin have been not in attendance. 

For the duration of the press meeting, as described by Korea JoongAng Day by day, 3 reps for the trio — who also execute alongside a single a different in a splinter device identified as EXO-CBX — reported that Chen, Baekhyun and Xiumin have been in a monthlong dispute about expenses and contracts with SM. Cha Ga-won, president and higher element shareholder of INB100’s maintaining organization, One Hundred, and a single of the reps to communicate at the press convention, claimed a preceding SM CEO verbally promised in a recorded arrangement to price INB100 only a 5.5% charge for distributing its tunes releases by way of Kakao (the current higher element shareholder of SM Enjoyment), as opposed to the 15% to 20% p.c generally charged to businesses outdoors the residence Kakao’s umbrella. But Cha states SM is now demanding a 10% royalty charge for the members’ use of the agency’s mental home (these sorts of as the members’ phase names, as nicely as EXO and EXO-CBX) in exchange for the discounted distribution charge.

“We declare a whole-on war against SM Leisure, which has designed a assure that it could not preserve and dedicated what could be perceived as fraud,” reported Cha all through the push convention, all through which INB100 representatives also demanded that SM disclose the breakdown of EXO’s earnings — reigniting the precise exact same agreement issues that had been reportedly settled final June. The reps additionally claimed that INB100 despatched a formal letter of criticism to SM Amusement about two months ago regarding the expenses and the earnings disclosure but knowledgeable not obtained a response.

On Monday evening, SM Entertainment refuted the allegations in a push release. In accordance to SM, an outdoors business enterprise imposed the 10% mental assets charge following court mediation in excess of preceding issues with previous EXO associates who had exited the label even although even now underneath contract. (Concerning 2014-2105, 3 other EXO customers left the group and broke their contracts with SM to concentrate on the China market place.) SM also promises EXO-CBX’s agreement is nonetheless genuine, and that the trio advantages from the EXO brand but are not satisfying their contractual obligations with SM regardless of the agency performing in superior religion with a lessen distribution charge.

SM’s assertion also alleges that Chen, Baekhyun and Xiumin had been “poached” by Cha and MC Mong — a 1-time rapper-producer in Korea who fell out of common public favor subsequent allegations that he had dodged the country’s necessary armed service draft, and who went on to commence agencies of his have, such as BPM Leisure, which now residences ex-SM artist Taemin of SHINee.

SM incorporated that it did not beforehand answer to INB100’s letter of complaint to steer clear of distracting from new EPs created by EXO associates Chen, D.O., and Suho more than the preceding thirty day period. The corporation concluded its statement by declaring that it will respond with legal action as opposed to hoping to sway common public viewpoint as a outcome of press conferences.