SM Entertainment has taken legal action to place provisional seizures on the assets of EXO-CBX members Chen, Baekhyun, and Xiumin, in a measure aimed at securing outstanding claims.
According to reports, on February 9 and 10, SM filed for provisional seizure of the members’ real estate holdings and jeonse (key money) deposits, totaling 2.6 billion KRW (about 1.78 million USD). The breakdown is as follows: Chen 300 million KRW (about 206,000 USD), Baekhyun 1.6 billion KRW (about 1.1 million USD), and Xiumin 700 million KRW (about 480,000 USD). The action is reported to be in accordance with a June 2023 agreement, which stipulated that 10% of the members’ individual activity revenues be allocated to SM Entertainment.
Provisional seizure is a legal procedure designed to restrict the disposal of assets by a debtor, ensuring that potential financial losses can be prevented. The affected assets reportedly include Chen’s jeonse deposit, Baekhyun’s apartment in Acheon-dong, Guri-si, Gyeonggi-do, and Xiumin’s apartment in Hannam-dong, Yongsan-gu, Seoul.
The dispute between SM Entertainment and EXO-CBX emerged in 2023, when the members notified the agency of their intention to terminate their exclusive contracts. A subsequent settlement allowed EXO group activities to continue under SM Entertainment, while individual activities would be managed by INB100, with 10% of personal revenue payable to SM.
In the following year, EXO-CBX reportedly claimed that SM had failed to comply with the agreement and withheld royalty payments, leading to renewed legal proceedings. SM Entertainment is currently pursuing a lawsuit to enforce the exclusive contract, with both parties actively engaged in court proceedings.
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