SM Entertainment has placed a provisional seizure on the assets of EXO members Chen, Baekhyun, and Xiumin.
EXO-CBX’s Assets Seized By SM, Triggers Massive Backlash
On the 11th, a source from the music industry told Sports Chosun, “Recently, SM Entertainment has provisionally seized the assets of Chen, Baekhyun, and Xiumin (EXO-CBX).” The total amount SM requested is ₩2.60 billion KRW (about $1.78 million USD), aimed at securing the claim of about 10% of the individual activity earnings agreed upon between SM and CBX in June 2023.
The value of the assets seized has gained attention, especially when divided by individual members. Chen’s share is ₩300 million KRW (about $206,000 USD), Baekhyun’s ₩1.60 billion KRW (about $1.10 million USD), and Xiumin’s ₩700 million KRW (about $480,000 USD).
The conflict between SM and CBX that arose in June 2023 is still ongoing. At the time, CBX announced they were preparing legal action against SM, citing unsupported financial settlements and an unfairly long contract period, and notified of grounds for contract termination. SM refuted this, raising suspicions of tampering (prior contact) involving Big Planet Made, the parent company of INB100, which is CBX’s agency. The two parties reached a settlement on June 18, agreeing that 10% of CBX’s individual earnings would be paid to SM, but CBX claimed in June 2024 that SM did not fulfill the agreement, keeping the conflict unresolved.
CBX also accused SM executives of fraud for allegedly not honoring the guaranteed distribution commission rate of 5.5%, but the case was dismissed due to insufficient evidence. Allegations reported to the Fair Trade Commission about burdens related to music distribution fees were also closed with no charges.
Ultimately, CBX has been excluded from EXO’s full-group activities. Last October, CBX expressed a strong desire to participate in full-group activities, saying they accepted all conditions, but SM firmly stated that the dispute settlement and group activities are separate matters.