Chen, Baekhyun and Xiumin - three EXO members (also known as CBX) - are having a legal dispute with the management company INB100. The three artists requested the Seoul Central Court (Korea) to suspend the exclusive contract with the company.
On September 7, the court held the first review session for the application for application of temporary emergency measures. This move was made after the two parties failed to reach an agreement on payment and income settlement.
In April, Chen, Baekhyun and Xiumin announced the termination of their contracts with INB100. They argued that the company had not fully fulfilled its finalization obligations. However, INB100 did not accept the termination of the contract. After the disagreement could not be resolved, the case was brought to court.
While waiting for the verdict, Chen, Baekhyun and Xiumin proposed suspending the contract to temporarily suspend the ties between the two parties.
INB100 was founded by Baekhyun in June 2023, after three members separated personal activities from SM Entertainment. In May 2024, INB100 joined One Hundred Label run by Cha Ga-won.
The lawsuit takes place in the context that the head of One Hundred Label is facing a criminal case. Cha Ga-won was arrested and prosecuted in August on charges of fraud of about 30 billion won.
According to the indictment, Cha Ga-won proposed to Knowmerce a project using the intellectual property rights of artists of the company. He signed a contract, received a deposit but did not implement the project as agreed. The first trial is scheduled to take place on October 13.
Cha Ga-won founded One Hundred Label with singer and producer MC Mong in 2023. However, MC Mong left the company in July 2024 after disagreements with Cha Ga-won. Since then, Cha Ga-won has continued to run the business.
The dispute between the three EXO members and INB100 also originated from a long separation process with SM Entertainment. In June 2023, Chen, Baekhyun and Xiumin once requested termination of contracts with SM, claiming that the company did not provide sufficient documents related to income settlement and had contract term issues.
After the negotiation process, the two sides reached an agreement. The three members continued to participate in EXO's joint activities under the management of SM, while personal activities were carried out through INB100. According to the agreement, INB100 must pay SM 10% of revenue from the personal activities of the three artists.
However, by June 2024, disagreements between the two sides continued to arise. Chen, Baekhyun and Xiumin accused SM of not properly implementing the agreement on album and digital music distribution fees. The three members said that SM once committed a fee of 5.5% for INB100 but did not implement it.
They then accused some SM leaders and employees of fraud. The case did not lead to prosecution because functional agencies determined that there was not enough evidence.
Continuous disputes affect the participation of the three members in EXO's joint activities. While group activities have changed, Chen, Baekhyun and Xiumin still maintain personal activities through INB100.
Currently, the court is considering the request to terminate the contract between the three members and INB100. This decision may affect the personal activities of Chen, Baekhyun and Xiumin in the near future, and at the same time decide on the next handling direction for the dispute between the two parties.
