COMPLETE FACTS & Summary: EXO CBX vs SM Entertainment Contract Lawsuit + Leaving Reasons

EXO members Chen, Baekhyun, and Xiumin (CBX) are leaving SM Entertainment! Additionally, the three EXO CBX members have revealed shocking facts on how SM Entertainment evaded the law and maintained their slave contract against their artists. Here’s a brief summary of what happened behind EXO CBX members’ lawsuit against SM Entertainment and why they’re leaving the company.

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EXO Members Chen, Baekhyun, and Xiumin (CBX) Leaving SM Entertainment + Announces Slave Contract Lawsuit

SM Entertainment has done it again! The company has been crowned the ruler of this year’s drama by netizens after causing yet another public dispute and massive disappointment to the global Kpop community.

After previously involved with one of the biggest dramas and business takeovers with HYBE and Kakao, SM Entertainment now faces another issue from one of its greatest Kpop artists, EXO.

On July 1, EXO members Chen, Baekhyun, and Xiumin (CBX) delivered an official statement that they had terminated their exclusive contract with SM Entertainment (SM). Not only that but the members of EXO CBX were also determined to file a lawsuit against SM for alleged slave contract and unfair payment.

“This is lawyer Lee Jae Hak of LIN Law Firm, representing EXO members Baekhyun, Xiumin, and Chen (CBX).
Since SM refused to give a clear basis of their settlement payment, the artists must inevitably terminate their exclusive contract with the company as of June 1.
The artists also plan to take all civil and criminal lawsuit for settlement payment against SM Entertainment.”
EXO CBX Members’ Lawyer.

EXO Chen, Baekhyun, and Xiumin (CBX). | Pinterest

EXO CBX (엑소-첸백시 or Exo-Chen-Baek-Xi) is a sub-unit of EXO formed by SM Entertainment. They debuted their first EP, Hey Mama! on October 31, 2016. Consisting of EXO members Chen (Kim Jong Dae), Baekyun (Byun Baek Hyun), and Xiumin (Kim Min Seok), the unit is famous with the name CBX and now claims to be leaving SM Entertainment.

What Happened & Why EXO CBX Members Leaving SM: Unfair Payment and Slave Contract Lawsuit

So, what really happened, and why are EXO CBX members leaving SM Entertainment?

According to their lawyer’s statement, it all started when EXO CBX members requested transparency of their payment to SM Entertainment. It is the domain and basic right of all artists to demand a clear and transparent report of their fees from their company, just like how Lee Seung Gi asked for his from Hook Entertainment.

However, even after asking for the 7^th time, SM Entertainment refused to give them the detailed report.

“From March 21, EXO CBX members have requested copies of transparent settlement reports and settlement grounds to SM 7 times through their legal representative.
However, SM maintained their unfair position, stating they couldn’t give them copies of the reports.”
EXO CBX Members’ Lawyer.

What’s worse, the statement also revealed that SM has been forcing EXO CBX members and all its artists to sign an unfair slave contract.

“Since the beginning of their debut, EXO CBX members had been forced to sign a 10-year long-term contract with SM through a special extension. Not only that, SM also pushed for additional agreements that resulted in a total of 17—18 years of an exclusive contract.
It is a clear violation of the law, and SM has committed such power abuse repeatedly against its artists.
Therefore, EXO CBX members plan to file a complaint and official lawsuit against SM Entertainment.”
EXO CBX Members’ Lawyer.

SM Entertainment Denied All Allegations and Blamed a Third Party Instead

Responding to the statement from EXO CBX regarding the lawsuit and the reason behind their leaving, SM Entertainment denied all allegations in an official statement.

About Settlement Payment

According to SM, they have successfully reported payment details every month to EXO CBX members. The company also claimed that the members had never previously raised any issues regarding payment.

Regarding EXO CBX’s request for the transparency of their contract payment, SM believed that the members had ulterior motives.

“We provide the artists a clear monthly payment report, and they can check the settlement’s basis at any time. Over the years, the members have never issued any problems with the process.
EXO CBX members have requested copies of the settlement for different purposes. They are using the settlement requests as reasoning for contract termination.”
SM Entertainment.

About EXO CBX Exclusive Contract with SM Entertainment

In the case of EXO CBX’s exclusive contract, SM Entertainment believed that everything happened according to the law.

“New contract discussions start when their existing contracts were expiring. It was all valid and legitimate based on Standard Exclusive Contract Form for Entertainers and acknowledged by the Supreme Court.
All EXO CBX members signed a new valid contract on December 30, 2022, after completing a fair negotiation in detail. At the time, we conducted the negotiations with the presence of the members’ lawyer from a prominent law firm.”
SM Entertainment.

Blaming a Third-Party Influence: BPM Entertainment

Along with denying the allegations, SM Entertainment believed that EXO CBX’s contract issue and lawsuit started because of third-party involvement. The company then assumed that the third party was Big Planet Made Entertainment (BPM Entertainment). That is why they sent a certification of contents to the company.

“EXO CBX’s lawyer suddenly claimed that the members cannot accept their new contract, and we began hearing it was due to an external force.
We confirmed that this external force did not only lure certain artists into breaching their contracts but also tempted more artists to violate their contracts and sign additional contracts using these certain artists.
Therefore, we will not stand idle and take all legal action possible to protect our artists’ image and reputation.”
SM Entertainment.

However, BPM Entertainment strongly denied SM’s accusation.

“BPM Entertainment has never met with the reported artists. We have never discussed or shared opinions regarding any exclusive contract.
We confirm that SM Entertainment’s CEO has sent a certification of contents to our agency. And we regret their intention to connect their own internal conflicts with unrelated agency.
That is why we will take legal action if they continue their attempt.”
BPM Entertainment.

EXO CBX Members Rebutted with Clearer Contract Issue and Reason for Leaving SM

Following the denial and accusation from SM Entertainment, EXO CBX members rebutted with clearer contract issues and reasons of why they’re leaving the company.

Through their lawyer’s statement, SM Entertainment only allowed EXO CBX members to “view” their settlement reports. So, it means that the company only “showed” what they wanted the artists to see regarding their payments. Furthermore, the accuracy of these reports is questionable since SM merely tell the artists to come and view them without providing them a designated copy to review within 30 days, as it legally should be.

Therefore, EXO CBX members repeatedly requested the company to give them settlement report copies after telling SM they were leaving. But SM refused and claimed that EXO CBX members suddenly raised an issue after changing legal representatives.

Most importantly, EXO CBX members could no longer stand SM’s excessive effort to make them sign 17 to 18 years of contract. It was as if 12 to 13 years were not enough for them, even when they already violated the 7-year legally allowed contract from the government.

“SM is trying to force a 17-to-18-year contract to EXO CBX members as if the 12 to 13 years contract period is not enough for them.”
EXO CBX Members’ Lawyer.

EXO CBX Members Feel Offended with “Third-Party Influence” Accusation

And ultimately, EXO CBX members feel offended that SM Entertainment blamed “third-party influence” instead of taking responsibility for the contract issue and why they’re leaving the company.

“EXO CBX members are adults who can think for themselves and be responsible for their own actions. They are independent individuals with sound opinions and judgments. And it is within the artists’ rights to receive consultations from legal representatives, accountants, and/or anyone else.
Instead of providing the requested settlement data, SM keeps on talking about external third-party forces. They claimed that EXO CBX members have attempted to sign dual contracts.
However, the members have never done so. They didn’t sign or even attempt to sign any contract besides the one with SM.
Knowing how SM has perceived their artists makes EXO CBX members feel especially distressed.
Inevitably, it raises the questions about who should be criticizing and who should receive the criticism in these circumstances.”
EXO CBX Members’ Lawyer.

What Will Happen to EXO?

Now, after this massive dispute? What will happen to the Kpop boy group EXO?

Will the group continue promoting with even less members like what had happened to its predecessors TVXQ, Super Junior, and Girls’ Generation? Will the company cause EXO to lose its members more than it already has?

Fortunately, CBX members expressed they wanted to stay with EXO even after the contract lawsuit and leaving SM. Therefore, all it takes is just for SM Entertainment to agree with their decision. That way, EXO will remain in its current 9-member formation Kpop group.

“CBX members are searching methods to continue their activities with EXO even after terminating the contract with SM.
During the negotiation process, the artists preemptively proposed ideas to continue EXO activities even after leaving the company.”
EXO CBX Members’ Lawyer.

So, what are your thoughts about what happened behind the alleged slave contract of EXO CBX members that they’re leaving SM Entertainment? Please share your thoughts in the comments. Also, stay with Kpoppost Instagram, Facebook, Twitter, and Telegram channel for more EXO CBX updates.

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