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SM Entertainment, EXO-CBX fail to reach settlement in first court mediation, second round set for October
['Kim Jae-Heun']
The korea Herald News Rss
Dispute reignited over contract terms and distribution feesThe first court-led mediation attempt between EXO subunit CBX — comprising Baekhyun, Xiumin and Chen — and SM Entertainment in their 600 million won ($430,000) contract dispute has failed.
The Seoul Eastern District Court on Tuesday held the initial mediation session for SM Entertainment’s contract enforcement lawsuit against CBX, as well as CBX’s countersuit.
SM Entertainment held its position that “exclusive contracts must be upheld,” stressing that CBX had agreed to pay 10 percent of revenue from individual activities.
The conflict dates back to June 2023, when the CBX members accused SM Entertainment of unfair long-term contracts and a lack of transparency in payments.
In the same month, One Hundred Label Chairman Cha Ga-won held a press conference, arguing, “SM Entertainment is demanding 10 percent of sales revenue despite failing to uphold the agreed 5.5 percent distribution fee.”The court has set a second mediation session for Oct. 2.
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