EXO unit ChenBaekXi (Baekhyun, Xiumin, Chen) and SM Entertainment have failed to settle, pushing their dispute into a full-scale legal battle.
On October 2, the Seoul Eastern District Court held the second mediation session for the contract enforcement and settlement payment lawsuits filed by both sides, but no agreement was reached. Following the breakdown of the first mediation last month, this second attempt also failed, returning the case to the main litigation process.
The conflict dates back to 2023. ChenBaekXi notified SM of their intention to terminate their exclusive contract, claiming that SM had not properly disclosed settlement data, and even filed a complaint with the Fair Trade Commission. After negotiations, it seemed the matter was resolved: the group's exclusive contract would remain in place, while individual activities would proceed under their new agency, INB100.
However, disputes over revenue distribution from individual activities reignited tensions. SM filed a lawsuit, claiming ChenBaekXi failed to honor the agreed 10% payment. ChenBaekXi countered, arguing that SM had not upheld the initially promised 5.5% distribution fee, rendering the agreement itself unfair. They responded with a countersuit claiming approximately 600 million KRW (approximately 426,591 USD) in settlements.
ChenBaekXi, EXO’s first subunit that debuted in 2016, continues to pursue individual activities through INB100. However, with the mediation failing, the dispute now appears set for a prolonged legal battle.
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