SM Entertainment has officially moved to freeze assets belonging to EXO subunit members Chen, Baekhyun, and Xiumin (CBX), with the total value amounting to 2.6 billion won (approximately 46.3 billion KRW).
The legal measure aims to secure a debt claim equivalent to 10% of the members’ individual activity revenue, stemming from a prior agreement between both parties.
In 2023, CBX announced the termination of their exclusive contracts with SM Entertainment, arguing that the contract duration was unfair. After negotiations, both sides reached a settlement in June 2023.
Under the agreement, the three members would operate through their own company while paying 10% of their individual earnings to SM.
However, tensions resurfaced when CBX later claimed that SM had failed to uphold parts of the agreement. As a result, they refused to make royalty payments, escalating the conflict into a full-scale legal dispute.
According to BizHankook, SM Entertainment filed for provisional seizure of assets on February 9 and 10, targeting properties owned by the three members.
The frozen assets include:
- Chen’s jeonse (lump-sum lease deposit) claim
- Baekhyun’s apartment in Achun-dong, Guri (Gyeonggi Province)
- Xiumin’s apartment in Hannam-dong, Yongsan District, Seoul
- Baekhyun’s Achun-dong apartment measures 142㎡ and was purchased in October 2023.
- Xiumin’s Hannam-dong apartment spans 166㎡, with ownership transfer procedures completed just last month on January 9.
The total amount SM seeks to secure through the asset freeze is 2.6 billion won, representing the unpaid portion of the agreed 10% revenue share.
A provisional seizure (asset freeze) prevents the debtor from transferring or disposing of assets to avoid repayment. This legal action is typically taken when there are concerns that the debtor may attempt to hide or liquidate assets, potentially making debt recovery difficult.
As the legal battle between SM Entertainment and EXO-CBX continues, industry observers are closely watching how the dispute over contract terms and revenue distribution will unfold.
Sources: Netizenbuzz
You must be logged in to post a comment.