SM Entertainment Claims 2.6 Billion Won From EXO-CBX, Files For Provisional Seizure Of Assets - Full Case Explained

SM

Entertainment has taken new legal steps in its long-standing dispute with EXO-CBX members Chen, Baekhyun and Xiumin, placing provisional seizures on their assets to secure alleged outstanding claims. The move, reportedly filed on February 9 and 10, involves real estate holdings and housing deposits amounting to 2.6 billion KRW (approximately 1.78 million USD). The action is a huge escalation in the legal conflict between the K-pop agency and the trio, who have been entangled in a contract and settlement dispute since 2023.

SM Entertainment files for seizure of CBX assets

According to reports, SM Entertainment filed for provisional seizure of Chen’s housing deposit receivables worth 300 million KRW (about 206,000 USD), Baekhyun’s apartment in Acheon-dong, Guri-si, Gyeonggi-do valued at 1.6 billion KRW (approximately 1.1 million USD), and Xiumin’s apartment in Hannam-dong, Yongsan-gu, Seoul worth 700 million KRW (around 480,000 USD). The total claim stands at 2.6 billion KRW.

For the unversed, provisional seizure is a legal mechanism designed to prevent a debtor from disposing of assets while a legal claim is under review. In this case, SM’s action aims to secure its right to 10% of the members’ individual activity revenues, as stipulated in a June 2023 agreement reached between both parties.

What is the legal dispute between SM and CBZ?

The dispute dates back to June 2023, when Chen, Baekhyun and Xiumin notified SM through legal representatives of their intention to terminate their exclusive contracts. The trio cited concerns over allegedly unfairly long contract durations and opaque financial settlements. SM refuted these claims, stating that the contracts had been recognised as legally valid by the Supreme Court and that the renewed agreements were signed after thorough discussions with legal counsel, without coercion.Following negotiations, both sides reached a settlement. Under the agreement, EXO’s group activities would continue under SM Entertainment, while individual and unit activities would be managed by the independent label INB100. As part of the deal, 10% of the members’ individual revenues would be paid to SM.

However, tensions resurfaced when EXO-CBX alleged that SM failed to honour a promised 5.5% distribution fee rate for albums and music released under INB100. In response, the trio reportedly withheld the agreed 10% payment, arguing that SM had breached the terms first. The conflict intensified further after a leaked recording allegedly involving MC Mong and suspicions of tampering emerged, especially after INB100 became affiliated with a subsidiary led by him. EXO-CBX also filed a fraud complaint against SM executives, but the case was dismissed due to insufficient evidence.Meanwhile, despite the legal battle,EXO has continued group promotions. The group held a fan meeting titled EXO’verse in December last year and released their eighth full-length album REVERXE on January 19. Following their comeback with the title track Crown, EXO is set to hold EXO PLANET #6 - EXhOrizon in Seoul.