INB100, the agency of EXO-CBX (Chen, Baekhyun, Xiumin) has rebutted SM Entertainment's stance.
On June 10, INB100 stated, "We are deeply disappointed with SM's repeated claims of tampering, and we demand that SM disclose their criteria for tampering," adding, "We will strongly respond by holding SM accountable for defamation and spreading false information."
They continued, "EXO-CBX has even given up their exclusive contract fees to continue EXO activities with SM. However, for their individual activities, they needed a separate company to distribute albums and music. SM initially demanded 10% of the revenue from CBX and instead suggested a 5.5% distribution fee through Kakao, which they accepted. In other words, it was SM who proposed everything but is now breaking their promises."
Additionally, the CBX side stated, "SM should clearly define and provide the basis for their tampering claims. Is it tampering for artists to seek advice and counsel from acquaintances, seniors, and colleagues? Baekhyun was seeking advice from people to establish his own company, and it is even more unreasonable to claim tampering in the context of starting a one-person company."
They also said, "As a major entertainment company, SM should stop making irrelevant and petty claims that divert from the core issue. Forcing obligations on artists without honoring their own promises clearly shows that they have only viewed artists as their money-making tools."
The CBX side urged, "SM should not distort the essence of this issue and should disclose the basic rights of artists, such as the basis for settlements. Before accusing others of tampering, SM should reflect on whether they have conducted contracts, executed expenses, and disclosed settlements within the framework of standard contracts. If SM continues to withhold settlement basis data, we will file a preliminary injunction with the court."
Previously, EXO-CBX's side claimed that SM Entertainment had failed to fulfill the terms of their agreement. In response, SM emphasized that the core issue was the improper inducement (tampering) of their artists by MC Mong and Chaga One.
SM continued, "For a long time, MC Mong and Chaga One have approached several artists under valid exclusive contracts with us. When we signed an agreement with CBX last year, we even issued a public message to protect EXO, stating that we would not raise issues regarding tampering between CBX and MC Mong and Chaga One. Today's press conference leaves us feeling deeply distressed."
SM also stressed, "CBX did not raise the issue of exclusive contracts because we failed to provide settlement data but rather to invalidate their contracts by any means possible."
Here is the full statement:
"Chairman Cha Ga Won and CEO Shin Dong Hyun express deep regret at SM's repeated claims of tampering and demand that SM disclose their criteria for tampering.
We also declare that we will strongly respond to SM by holding them accountable for defamation and spreading false information through all civil and criminal means.
It is outrageous and petty that SM, a so-called major agency, has once again forgotten its primary role and issued statements that divert from the essence of the matter through nitpicking and irrelevant arguments.
We believe that SM has disqualified itself as an entertainment agency by framing its stance in a way that entangles EXO-CBX, artists still actively performing as part of EXO, in the narrative of tampering.
EXO-CBX even gave up their exclusive contract fees to continue EXO activities with SM.
However, they needed a separate company to distribute albums and music for their individual activities. SM initially demanded 10% of the revenue from CBX and instead suggested a 5.5% distribution fee through Kakao, which they accepted. In other words, it was SM who proposed everything but is now breaking their promises.
We again demand from SM to clearly define and provide the basis for their tampering claims. Is it tampering for artists to seek advice and counsel from acquaintances, seniors, and colleagues?
Baekhyun was seeking advice from people to establish his own company, and it is even more unreasonable to be accused of tampering in the context of starting a one-person company.
However, Baekhyun, who initially started a one-person company, has realized that he cannot manage both artist activities and business management simultaneously. To pursue his dream of being both an artist and a producer, he has now entrusted management to a reliable expert.
SM, as a major agency, should stop making irrelevant and petty claims that divert from the core issue. Forcing obligations on artists without honoring their own promises clearly shows that they have only viewed artists as their money-making tools.
SM stated in their position today that “we do not have the authority to decide Kakao's fees.” However, during negotiations, CEO Lee Sung Soo confidently told Chairman Cha Ga Won over the phone, “Anyway, you'll have to pay 17% elsewhere. But if we offer 5.5%, there's no difference, right?” This can only be seen as CEO Lee Sung Soo and SM deceiving and mocking the artists without having the ability to fulfill such claims.
Lastly, SM should not distort the essence of this issue and should disclose the basic rights of artists, such as the basis for settlements.
Before accusing others of tampering, SM should reflect on whether they have conducted contracts, executed expenses, and disclosed settlements within the framework of standard contracts.
If SM continues to withhold settlement basis data, we will file a preliminary injunction with the court.
Meanwhile, INB100 will do its utmost to protect the rights and interests of the artists."
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