The bitter legal battle between EXO members Chen, Baekhyun, and Xiumin (collectively known as EXO-CBX) and their former agency, SM Entertainment, is heading to court-ordered mediation.
The first mediation session for the contract dispute between SM Entertainment and EXO-CBX, involving roughly 600 million won ($440,000), is scheduled for September 23rd.
The conflict began in June of last year when SM Entertainment sued the three members to enforce their exclusive contracts, stating that the members’ “unreasonable actions could no longer be tolerated.”
EXO-CBX quickly filed a counterclaim, alleging that SM had breached its own obligations. Through their agency INB100, they claimed that SM Entertainment had failed to uphold the promised 5.5% distribution fee for album and music sales and argued that the agreement requiring them to pay 10% of their individual earnings was unfair.
The court has ordered mediation in an effort to resolve the dispute before it goes to a formal trial. The outcome of tomorrow’s session will be a key step in this high-profile case.
UPDATE:
The first mediation in the contract dispute between SM Entertainment and EXO-CBX has ended without resolution.
The Seoul Eastern District Court held the first mediation session for the lawsuits filed by SM and EXO-CBX on September 23rd, each seeking contract enforcement and settlement payments. No conclusion was reached. The second mediation session is scheduled for October 2nd.
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