Sayart.net - EXO Members Accuse SM Entertainment of Unfair Demands Over Revenue from Solo Activities

Chen, Baekhyun, and Xiumin claim violation of previous agreement and threaten legal action against K-pop agency

Courtesy of SM Entertainment

Three members of the K-pop group EXO — Chen, Baekhyun, and Xiumin — have accused their agency, SM Entertainment, of making unfair demands concerning revenue from their individual activities, reigniting a conflict that had simmered for a year. The members claim that SM Entertainment is unjustly demanding a 10 percent royalty on earnings from their personal endeavors, contrary to a prior agreement.

At a press conference held in a Seoul hotel on Monday, the trio's legal representative, Lee Jae-hak, asserted that SM Entertainment is failing to honor a previously agreed-upon 5.5 percent commission rate for revenue generated from album and music sales. This agreement was part of a deal aimed at resolving earlier disputes between the members and the agency.

"SM Entertainment is not adhering to the 5.5 percent commission rate and is instead demanding 10 percent of the artists' earnings from their individual activities, including albums, concerts, and commercials," Lee stated. The three EXO members had renewed their contracts with SM Entertainment but later indicated their intention to terminate these contracts, citing the agency's failure to provide adequate accounting data. In response, they filed an antitrust complaint with the Fair Trade Commission against SM Entertainment.
 

▲ Courtesy of SM Entertainment

The dispute was temporarily resolved last year when both parties agreed to maintain exclusive contracts with SM Entertainment while allowing the members to manage their solo careers through INB100, an independent label established by Baekhyun earlier this year.

According to Lee, SM Entertainment's Chief A&R Officer, Lee Sung-soo, had assured a 5.5 percent distribution commission rate from distributor Kakao for INB100, leading to the agreement between the parties. However, a formal notice sent to SM Entertainment in April, highlighting the breach of this commitment, received no response.

Lee demanded that SM Entertainment acknowledge the failure to uphold the agreed-upon 5.5 percent commission rate and cease requesting 10 percent of revenue from personal activities. He warned that the members are considering canceling the agreement due to fraud or terminating it due to nonfulfillment of obligations. The trio may also pursue additional complaints with the police and the state antitrust authorities regarding the agreement's execution.

EXO members Chen, Baekhyun, and Xiumin accused SM Entertainment of making unfair revenue demands and are contemplating further legal action.

Sayart 

Blue YIM, yimyoungseo1010@naver.com