SM Entertainment strongly refutes EXO-CBX's press conference... ”They distorted our sincerity towards EXO... We will hold them accountable through the courts”

SM Entertainment (hereinafter referred to as SM Entertainment) announced that "EXO-CBX" (CHEN, BAEK
HYUN, XIUMIN) refuted the emergency press conference held by INB100, the group they represent.
On the 10th, SM Entertainment began by saying, "We express our deepest regret over the manner and content of the emergency press conference held by INB100 today regarding EXO-CBX."
He continued, "The essence of this whole incident is that MC Mong and Cha Ga Won have been unfairly tempting our artists.
"MC Mong and Cha Ga Won have approached many artists who have valid exclusive contracts with us in the past," the company said. "Since then, EXO-CBX has been renewing their contracts with those who have valid contracts."
"They started finding various niggling things to invalidate the agreement. Despite this, we accepted their request to continue their individual activities independently."
"The exclusive contract between our company and EXO-CBX is still valid, but we are allowing them to continue their individual activities through their individual corporations.
"I personally signed the agreement, including by paying 10% of the individual's corporate sales," and "Even though there is no obligation to amend a valid contract, the fact that our company made such an agreement is a cause for legal disputes with them.
If continuing with this situation causes any disruption to EXO's group activities, this will be a matter for the other members who are doing their best for EXO's activities, as well as for EXO itself.
"I thought it was unfair to the fans who support 'O'," he explained. "However, INB100, which EXO-CBX is a member of, is managed independently by them.
It was not. Before we knew it, it had been incorporated as a subsidiary of MC Mong and Cha Ga Won. When we signed the agreement with EXO-CBX last year, MC Mong and Cha Ga Won
Our company, which has been trying to protect EXO even to the point of distributing external messages that do not raise any issues regarding the tempering between the group and EXO-CBX, has announced today's press conference.
"I cannot help but feel devastated. Please do not distort our sincerity towards EXO any further."
In addition, "Regarding the portion of the company's request for 10% of the sales of the individual and corporate entities of 'EXO-CBX,' our company and 'EXO
This is the standard that was actually implemented in court arbitration during an exclusive contract dispute with a Chinese member of the company, and it has already been applied as a reasonable standard with a precedent.
"However, INB100 has been incorporated into MC Mong and Cha Ga Won's affiliates, and we are now abiding by the agreement.
This means that you will only enjoy the rights and benefits of being an EXO member, and will not fulfill your obligations.
"O-CBX continues to ignore the legally valid contract," the company said.
First of all, considering that EXO members DO, CHEN, and SUHO are currently working on individual albums, concerts, and other projects,
"We have not made this an issue in order to avoid any embarrassment. Despite this, we would like to emphasize that EXO-CBX is distorting even this consideration from our company."
"After checking the details of import distribution and payment, our artists signed the details of the settlement, and we have never raised any issues with the provision of settlement documents.
In April 2023, when they tried to deny the validity of the contract renewal, they suddenly started demanding that we provide copies of all the settlement documents.
The allegations made regarding the distribution fee rate are not true. Separately, EXO-CBX and INB100 have signed contracts on favorable terms with other distribution companies in which our company is a major shareholder.
As a result, the distribution of their music and albums has been smooth, and they have not suffered any particular damage."
In addition, "The large law firm that he employed and our company have been in business for over a year and a half.
"We can no longer tolerate his repeated claims that the contract renewal and agreement that were concluded through negotiations are invalid," and "the company continues to agree to the exclusive contract in order to pursue his own selfish interests."
We will not tolerate their actions of repeatedly claiming that the contract is invalid. EXO-CBX is trying to justify their wrong actions through public opinion, but our company will stand by the law and principles.
Meanwhile, at the Shilla Hotel in Seoul that afternoon, EXO-CBX appeared in a press conference to protest against SM Entertainment's unfair handling of the matter.
An emergency press conference was held to claim that the company was being treated unfairly. INB100 Chairman Cha Ga-won, CEO Kim Dong-jun, and lawyer Lee Jae-hak attended.