Hiya, that is SM Leisure.

We categorical deep remorse over the content material of in the present day’s press convention held by INB100 relating to Chen, Baekhyun, and Xiumin (hereinafter known as EXO-CBX) and the way wherein it was carried out, and we convey our stance as follows:

MC Mong and Cha Ga Received denying tampering & claiming to be a relationship that’s greater than household

First, we need to make clear that the essence of this whole incident is the unfair inducement (tampering) by MC Mong and Cha Ga Received towards our artists. Since a very long time in the past, MC Mong and Cha Ga Received have approached a number of artists who’ve legitimate unique contracts with us. Subsequently, CBX started to nitpick to invalidate the legitimate renewal contract they signed. Regardless of this, we patiently listened to their voices and finally accepted CBX’s request to conduct particular person actions independently. In different phrases, though the unique contract between us and CBX continues to be legitimate, we allowed them to conduct particular person actions by way of their particular person enterprise, with CBX personally signing the settlement to pay 10 p.c of the income from their unbiased enterprise. We made this settlement though we weren’t obligated to amend a sound contract as a result of we didn’t assume it will be truthful to the opposite EXO members who’re doing their greatest for EXO’s promotional actions in addition to followers who help EXO if EXO’s group actions had been to be disrupted as a result of persevering with authorized dispute with CBX.

Nevertheless, as confirmed in the present day, CBX’s INB100 was not operated independently by CBX. INB100 has already been integrated as a subsidiary of MC Mong and Cha Ga Received. Though we had already suspected this, the data revealed in in the present day’s press convention confirmed the tampering relating to CBX. After we signed the settlement with CBX final yr, we even distributed an exterior message to guard EXO, saying we wouldn’t increase the problem of tampering between MC Mong and Cha Ga Received close to CBX. We’re deeply dismayed by in the present day’s press convention. We hope that our real emotions for EXO are not distorted.

CBX enjoys the rights/advantages as EXO members however ignores guarantees/obligations

In actuality, after signing the settlement by way of mutual consent, CBX independently signed contracts for music and album distribution by way of their particular person enterprise and engaged in numerous particular person actions comparable to live shows and starring in broadcasts.

Concerning this, the ten p.c cost of the income of the person enterprise is the usual that was really applied by way of courtroom mediation through the unique contract dispute with EXO’s Chinese language members, and it’s already being utilized as an affordable customary with precedent. The usual derived by way of courtroom mediation was additionally utilized to CBX’s case, and we need to convey that these charges had been mutually mentioned and finalized through the precise settlement course of.

Nevertheless, INB100 has since been integrated as a subsidiary of MC Mong and Cha Ga Received and has now despatched us a certification of contents indicating that the settlement needn’t be upheld. This means that they need to benefit from the rights and advantages as EXO members however not fulfill their obligations. CBX continues to repeatedly ignore the legally legitimate contract.

After receiving INB100’s certification of contents, we took into consideration that EXO members D.O., Chen, and Suho had been actively engaged of their solo album releases, live shows, and initiatives, so we selected to not increase the problem to keep away from disrupting their actions. We emphasize that regardless of all this, CBX is distorting our consideration.

Distorting our multifaceted efforts to guard EXO regardless of monetary losses

The declare by INB100 relating to the distribution fee fee being unfairly dealt with by us shouldn’t be true. [The rates] had been talked about to help CBX by serving to them negotiate higher phrases with the distribution firm through the dispute with CBX. From the start, we should not have the authority to find out the distribution fee fee of different distribution firms. In actual fact, through the settlement course of, CBX requested to incorporate the distribution fee fee as a situation of the settlement, however we deleted the related clause after explaining that it couldn’t be included as a result of we didn’t have the authority to determine, and thus it was excluded from the ultimate settlement.

Moreover, when it grew to become tough to regulate the distribution fee fee as CBX needed regardless of our efforts, we made different lodging for them (comparable to permitting Baekhyun’s solo album, which we had been making ready since early 2023, to be launched below his personal company and overlaying the cancellation price for Baekhyun’s unilateral cancellation of a Japanese live performance). Aside from this, CBX and INB100 signed contracts below favorable circumstances with one other distribution firm wherein we’re a serious shareholder, and consequently their music and album distribution are continuing easily, so that they haven’t suffered any explicit losses.

In in the present day’s press convention, CBX’s authorized consultant Legal professional Lee acknowledged that CBX are “adults who can assume for themselves and take duty for their very own selections, appearing independently.” Regardless of this, we will not tolerate their repeated claims of invalidating the renewal contract they signed by way of one yr and 6 months of negotiations between us and the most important regulation agency they employed.

We won’t tolerate CBX’s actions of repeatedly claiming that the unique contract and subsequent settlement are invalid to pursue their very own pursuits. Whereas they attempt to justify their wrongdoings by way of manipulation of public opinion, we are going to calmly reply in keeping with the regulation and ideas and maintain CBX accountable by way of the courts.

Thanks.