EXO is about to go to court, the person who pulled the rope was "exposed" by SM Entertainment

The K-pop entertainment world is being disturbed by SM Entertainment's move to declare war on 3 EXO members, specifically they directly sued Baekhyun, Xiumin and Chen in court in response to previous accusations, pulling the person pulling the strings behind them to the light

On the afternoon of June 10, lawyers of INB 100 representing Baekhyun, Xiumin and Chen (EXO) held a press conference to denounce and expose the unfair treatment of SM Entertainment. According to INB100, SM Entertainment ignored the content of Baekhyun, Xiumin, and Chen's negotiations, and asked them to unreasonably give 10% of their revenue from their personal activities.
Very quickly, SM Entertainment responded with a notice of initiating a lawsuit against the 3 EXO-CBX, forcing the 3 idols to be held accountable in court. SM said that the essence of the incident was that MC Mong and Cha Ga Won seduced and incited the artist, causing the 3 EXO members to borrow enough reasons to invalidate the exclusive contract. However, SM still patiently listened and accepted EXO-CBX's request to operate independently even though the exclusive contract was still valid. However, INB100 is not an independent company of 3 EXO members, in fact, this is a subsidiary of MC Mong and Cha Ga Won.

Immediately, when he heard that he was accused of being the one behind it, MC Mong refuted that he was not involved, or took action to interfere in the dispute between EXO-CBX and SM, as a senior and junior in the music world, he only comforted Baekhyun and never took any action to recruit artists. Moreover, since MC Mong is not the internal director of Big Planet Made Entertainment, the rumors involved are clearly far from the truth.

Regarding the 10% figure of revenue from individual activities, SM said that this is the standard implemented by the court order, from previous contract disputes against former EXO members (Kris, Tao, Luhan). This is applied as a precedent-setting reasonable standard. This ratio was discussed and signed by SM and Baekhyun, Chen, and Xiumin. However, INB100 is not an independent company of this trio, so the agreement is broken. Thus, Baekhyun, Chen, Xiumin are entitled to the rights and benefits of EXO members but do not perform any obligations.

Regarding the alleged delay in finalizing income, SM said it changed the payment twice a year to monthly after EXO's launch. This is amended under the Korea Arts and Culture Industry Development Act. The company allows artists to view the details of the allocation of income sources, and is always available to provide printouts of related expenses. If the artist requests, they can also check their own settlement figures in the company's accounting system.

The 3 EXO-CBX members themselves checked the data, signed the confirmation and did not receive any response until April 2023, then they suddenly asked for documents with the aim of invalidating the exclusive contract.

After that, SM also accused INB 100 of lying about the music distribution commission rate. During the signing of the agreement, the 3 members offered a low commission rate as a condition for signing, but SM removed this clause because they did not have the authority to decide on a specific number. The decision belongs to Kakao - SM's largest shareholder. When the adjustment of the distribution commission rate failed, SM tried to consider making favorable terms for the 3 members. INB100 and 3 EXO members have signed a contract with another music distribution company in which SM is a shareholder, so the distribution of albums and digital music has gone smoothly, without any specific losses.

However, this is not the first time EXO-CBX and SM Entertainment have clashed. Exactly a year ago, they filed a petition with the court, asking for the annulment of the "slave contract". I thought the lawsuit would be as tense as a string, but on June 19, 2023, SM Entertainment and 3 EXO members officially reconciled. But a full year later, the situation became tense again.

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