EXO's powerhouse trio Baekhyun, Xiumin, and Chen, known as ChenBaekXi, are taking a stand against what they perceive as unjust treatment from SM Entertainment.
In a bombshell press conference held on the 10th at Seoul's prestigious Shilla Hotel, the group's legal representative, Lee Jae-hak, dropped a truth bomb that shook the K-pop industry. According to Lee, SM Entertainment failed to honor their end of the bargain by not upholding the agreed-upon 5.5% royalty rate for album and song sales, as stipulated in their contract last year.
To add insult to injury, SM allegedly started eyeing a hefty 10% cut from the members' personal revenue, including solo activities and endorsements.
Lee didn't hold back, pointing fingers directly at SM's Chief A&R Officer Lee Sung-soo, claiming that he verbally assured the chairman of conglomerate One Hundred, which oversees ChenBaekXi's agency I&B 100, that the 5.5% rate would be enforced for album and song distribution fees via Kakao.
Based on this assurance, a deal was inked back in June last year. But now, with SM allegedly reneging on their promises, legal action is on the table.
Demanding justice, Lee called on SM to stick to their end of the bargain, honoring the agreed-upon royalty rate and providing evidence of settlements. And as for the outrageous demand for 10% of personal revenue? Lee made it clear: "Cut it out!"
Adding fuel to the fire, Chairman Cha Ga-won, present at the conference, vehemently denied any wrongdoing, stressing that their bond with ChenBaekXi runs deeper than mere business.
It's a David vs. Goliath showdown, with the underdogs fighting for what they believe is rightfully theirs. Will justice prevail, or will SM continue to wield its power unchecked?
Stay tuned as this legal battle unfolds!
Source(1)
