The EXO-CBX lawsuit is a set of dueling cases between SM Entertainment and the EXO subunit’s three members — Chen, Baekhyun, and Xiumin — over whether the trio must pay SM 10% of their solo earnings under a 2023 settlement, and whether SM broke that same settlement first by failing to deliver a promised music distribution rate. As of early 2026, mediation has collapsed, SM has won every court and regulatory ruling to date, and the company has placed provisional seizures totaling roughly 2.6 billion won on the members’ personal assets.
What the Fight Is Actually About
Two numbers sit at the center of the case. The first is 10%: the share of revenue from individual activities that Chen, Baekhyun, and Xiumin agreed to pay SM in exchange for using their stage names and the EXO and EXO-CBX brand names.1Billboard. EXO Band Members Lawsuit Against SM Entertainment Over Royalty Fee The second is 5.5%: the music distribution fee through Kakao that INB100, the agency now representing the trio, says former SM CEO Lee Sung-soo verbally promised them.2NME. EXO’s Baekhyun, Chen, and Xiumin Allege SM Entertainment Unfairly Demanding 10 Per Cent of Earnings
CBX’s position: because SM never honored the 5.5% distribution rate, the members should not have to pay the 10% royalty. SM’s position: the 10% was mutually agreed to in writing and reflects the same standard set in earlier settlements with former EXO members Kris Wu, Luhan, and Tao; the distribution rate is charged by another company entirely, and the clause was intentionally left out of the final written agreement for that reason.3Yahoo Entertainment. EXO-CBX vs SM Entertainment
Alongside those two numbers, the members have also alleged they were not properly compensated for recent EXO group activities, that SM pressured them to renew contracts during their mandatory military service, and that the company blocked them from obtaining copies of financial records covering their years with the group.4Inquirer Pop. EXO-CBX’s Agency INB100 Accuses SM Entertainment of Unfair Demands
How the 2023 Settlement Set the Stage
In June 2023, Chen, Baekhyun, and Xiumin notified SM that they intended to terminate their exclusive contracts on grounds of unfairness.5Chosun Ilbo. EXO-CBX and SM Entertainment Lawsuit Referred to Mediation After about 19 days of negotiation they settled. Baekhyun launched an independent agency, INB100, which signed the other two members to handle their solo careers, while the trio continued as EXO members under SM for group activities.6NME. EXO’s Baekhyun Launches New Agency, Signs Bandmates Chen and Xiumin Baked into that settlement was the 10% royalty that would later become the centerpiece of the current lawsuit.
The arrangement held for roughly a year before breaking down publicly at an INB100 press conference on June 10, 2024, where the agency laid out its accusations against SM. SM rejected every claim the same evening and warned it would pursue the matter in court.
The Lawsuits on the Table
On June 12, 2024, SM filed a civil suit against Chen, Baekhyun, and Xiumin seeking payment of the 10% royalty it says they owe under the June 2023 agreement.1Billboard. EXO Band Members Lawsuit Against SM Entertainment Over Royalty Fee CBX filed a counterclaim seeking compensation based on actual settlement records from their 12 to 13 years at SM. The two suits combined were valued at roughly 600 million won, about $430,000.7Inquirer Entertainment. SM Entertainment, EXO-CBX Fail to Reach Settlement in First Court Mediation
The trio then opened a criminal front. On June 25, 2024, they and INB100 filed a fraud complaint at Seongdong Police Station against SM CAO Lee Sung-soo and co-CEO Tak Young-jun, tied to the gap between the promised distribution rate and what was actually being charged.8Koreaboo. EXO-CBX Lawsuit Against SM Entertainment CEOs for Fraud That complaint was later dismissed for insufficient evidence.9Chosun Ilbo. SM Entertainment Claims 2.6 Billion Won From EXO-CBX
What the Courts and Regulators Have Decided So Far
Every ruling to date has gone against CBX. The Seoul Eastern District Court refused to order SM to hand over 13 years of settlement data, agreeing only to records covering the period after the new exclusive contract, and calling the wider request “speculative without specifying the existence or scope of the settlement amount.” The court also dismissed CBX’s application for provisional measures to inspect and copy SM’s accounting books, describing it as “an expedient to achieve the purpose of the document submission order or to psychologically pressure SM Entertainment.”10Chosun Ilbo. Seoul Eastern District Court Dismisses EXO-CBX Claims Against SM Entertainment
CBX appealed. The Seoul High Court and the Supreme Court both upheld the lower court.11Forbes. SM Entertainment Stock Falls Despite Legal Victory Over EXO-CBX Members Two regulators looked separately: the Ministry of Culture, Sports and Tourism and the Korea Fair Trade Commission both reviewed the members’ allegations about unfair contracts and improper distribution practices, and each found no violations.10Chosun Ilbo. Seoul Eastern District Court Dismisses EXO-CBX Claims Against SM Entertainment
Why Mediation Collapsed
In September 2025 the Seoul Eastern District Court referred both the SM lawsuit and the CBX counterclaim to mediation. The first session, on September 23, 2025, before the 15th Civil Division, ended without agreement after about 30 minutes.12Korea Herald. SM Entertainment, EXO-CBX Mediation Fails A second attempt on October 2, 2025, also failed, and the case returned to regular litigation.13Maeil Business Newspaper. EXO-CBX SM Entertainment Mediation Fails
The two sides could not move off their original positions. SM held that the exclusive contracts stand and the 10% is owed. CBX held that SM had broken the deal first by not delivering the 5.5% distribution rate and by withholding proper accounting.
The 2.6 Billion Won Asset Seizure
On February 9 and 10, 2026, SM placed provisional seizures on the trio’s personal assets to preserve claims totaling 2.6 billion won, roughly $1.78 million. The breakdown: 300 million won against Chen’s housing deposit receivables, 1.6 billion won against Baekhyun’s apartment in Guri, Gyeonggi Province, and 700 million won against Xiumin’s apartment in Hannam-dong, Seoul.9Chosun Ilbo. SM Entertainment Claims 2.6 Billion Won From EXO-CBX14Times Now News. SM Entertainment Claims 2.6 Billion Won From EXO-CBX, Files for Provisional Seizure of Assets
The 2.6 billion won figure is what SM says has accumulated as unpaid 10% royalties on the members’ individual earnings since the June 2023 agreement took effect. It is more than four times the 600 million won at stake in the original pair of lawsuits.
Why CBX Is Missing From EXO Activities
The most visible fallout has been the group’s split lineup. In October 2025, SM announced that a year-end fan meeting called EXO’verse and a planned eighth studio album would proceed with six members: Suho, Chanyeol, D.O., Kai, Sehun, and Lay. Chen, Baekhyun, and Xiumin were excluded.15Forbes. Why Are Some EXO Members Missing From Their Upcoming Album
INB100 said the three had cleared their December 2025 schedules and were actively trying to negotiate participation. SM said the legal dispute and group work were separate matters, and that the members had to fulfill the 10% payment obligation and rebuild trust before any reunion could happen.16Chosun Ilbo. SM Entertainment Addresses EXO-CBX Exclusion From Group Activities EXO’verse went ahead on December 13 and 14, 2025, at Inspire Arena in Incheon, with both sessions selling out during fan club presales.17Korea Times. EXO Finally Unveils 6-Member Group Photo Without CBX SM itself acknowledged that the disputes had “caused significant harm to the EXO team and its fans.”
Where Things Stand in Early 2026
The core case is back on the regular litigation track after mediation failed. The provisional asset seizures are in place. The fraud complaint against SM executives has been dismissed. Every court and regulator that has weighed the members’ contract and distribution claims has ruled for SM.
There is also a new front on the CBX side of the equation. The trio reportedly notified INB100 in early April 2026 that they were terminating their contracts with the agency, and filed a lawsuit against parent company One Hundred seeking to end those exclusive agreements as well.18CB Insights. INB100 Company Profile One Hundred has faced its own troubles, including nonpayment allegations from a production company connected to Xiumin’s solo music video and reports that it has lost most of the artists it once represented. EXO’s eighth album is slated for 2026 with the six-member lineup, and no timeline has been announced for any reconciliation between SM and CBX.