Business

EXO-CBX Trio Sues SM Executives for Fraud

Jun 26, 2024 1 min read

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Members of the K-pop group EXO, specifically Chen, Baekhyun, and Xiumin, collectively known as EXO-CBX, have filed a lawsuit against SM Entertainment executives for fraud. The legal complaint targets SM Entertainment's Chief Administrative Officer Lee Sung Soo and co-CEO Tak Young Jun, alleging that they violated the Act on the Aggravated Punishment of Specific Economic Crimes. The trio claims that SM Entertainment had agreed to a 5.5% commission rate for the distribution of their solo albums and digital music but failed to honor this agreement. Additionally, EXO-CBX accuses SM Entertainment of taking an unfair 10% of the revenue from their individual activities without proper disclosure of settlement data.

In response, SM Entertainment has denied these allegations and countered with their own lawsuit, demanding that the EXO members adhere to their existing contracts. The entertainment company argues that the members have benefited from the fame associated with the EXO name and that the terms of their contracts were clear. This legal battle has garnered attention from fans and the broader public, with many expressing frustration over the ongoing dispute and calling for a resolution that honors the agreed-upon terms.

#entertainment #fraud #corruption #lawsuits #business-leaders #korean

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