SM Fails To Keep Promise About EXO-CBX’s Music Distribution Fees
On June 10 at 4 PM KST, EXO’s Chen, Baekhyun, and Xiumin’s (EXO-CBX) agency INB100 held an emergency press conference at the Shilla Hotel to report claims of unfair treatment by SM Entertainment.
During the press conference, they stated the unfairness of SM’s failure to keep its verbal promise.
EXO-CBX’s legal representative, Lee Jae Hak, stated that SM’s COO, Lee Sung Soo, guaranteed the three members a 5% music distribution fee. However, this was revealed as a verbal promise and not part of the agreement.
COO Lee Sung Soo stated that non-affiliated artists would receive a 15% distribution fee. Artists who were not affiliated signed the agreement, believing SM’s promises.
“There is a clause that 10% of profits generated from all entertainment activities (excluding producing activities) in the new company would go to SM. Although SM did not fulfill the agreement’s terms, they insisted on receiving 10% of the sales.
If SM continues to request 10% of personal activities, we will cancel or terminate the agreement and respond by reviewing the criminal complaint regarding the agreement, reviewing the complaint made to the FTC, and pointing out the legal issues from last year.”
— EXO-CBX’s legal representative Lee Jae Hak
Meanwhile, EXO-CBX revealed the reason as to why they renewed contracts with SM.
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