SM Entertainment has reportedly frozen the assets of EXO members Chen, Baekhyun, and Xiumin, collectively known as CBX.
BizHankook reported on the 11th that SM Entertainment froze the assets of Chen, Baekhyun, and Xiumin on the 9th and 10th.
According to the report, Chen’s housing deposit claim, Baekhyun’s apartment in Achun-dong, Guri-si, and Xiumin’s apartment in Hannam-dong, Yongsan-gu, Seoul, were frozen.
The total amount of SM’s claim against CBX for the asset freeze is 2.6 billion KRW (approximately $1.9 million USD), with individual amounts of 300 million, 1.6 billion, and 700 million KRW, respectively. This action is reportedly intended to secure claims equivalent to 10% of their personal activity revenues.
In 2023, CBX sued SM, alleging the company failed to provide accounting documents and engaged in unfair contracts. The two parties later agreed that CBX would maintain their exclusive contract with EXO for group activities but manage solo activities under INB100, with 10% of solo activity revenue to be paid to SM.
However, the conflict reignited in June 2024 when CBX claimed breaches of the agreement. They alleged that SM failed to uphold a 5.5% distribution fee guarantee, leading them to sue executives for fraud. The lawsuit was dismissed due to insufficient evidence.
CBX has largely lost their legal disputes with SM. Despite these setbacks, they expressed a desire to participate in EXO’s full group activities, which led to further tension.
SM stated that “settlements regarding disputes and team activities are separate issues” and cited a breach of trust with other EXO members.
Meanwhile, without CBX, EXO is set to kick off their sixth solo concert tour, ‘EXO PLANET #6 – EXhOrizon,’ at the KSPO DOME in Olympic Park, Seoul, from April 10-12.
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