On October 27, 2025, it was reported that EXO members Chen, Baekhyun, and Xiumin had lost the sixth round of their legal and administrative dispute with their long-time agency, SM Entertainment (SM).
According to publicly released documents, court rulings, police decisions, and regulatory notices, all found no evidence that SM committed illegal or deceptive practices in its contract arrangements with the trio.
This marks a significant moment in a currently stalled dispute. With six major decisions now against CBX, the group’s claims of unfair contracts and demands for termination appear to have reached a critical turning point.
For fans and industry watchers alike, the outcome raises fresh questions about the realities of artist-label relationships in K-pop.
What’s at Stake: Contract Transparency and Artist Autonomy
Chen, Baekhyun, and Xiumin first raised concerns publicly in June 2023. The trio alleged that they had been induced into what they considered an unfair long-term contract with SM, and sought termination.
They argued for clearer accounting records, more equitable terms, and questioned the transparency of revenue allocation.
In response, SM and the members signed a so-called “6·18 Agreement” in June 2023, which affirmed the validity of the existing contract but carved out solo and unit activities under a new label, INB100, while group-level promotions would remain under SM. The members also agreed that SM would receive 10 % of their personal activity revenue.
However, things didn’t go smoothly. After CBX allegedly failed to remit the agreed 10% revenue share, SM filed a lawsuit in June 2024 seeking contract enforcement.
Meanwhile, CBX counter-sued, claiming misrepresentation and failure to disclose accounting. Authorities, including the Korea Fair Trade Commission (KFTC) and the Ministry of Culture, Sports and Tourism (MCST), conducted investigations but found no actionable wrongdoing by SM.
Then came the most recent decision: a Seoul Eastern District Court dismissed CBX’s request for document disclosure, saying it was “a means of psychologically pressuring SM and contrary to the provisional nature of such injunctions.” The high court and the Supreme Court subsequently upheld these rulings.
What it means for EXO’s future and the members involved
For the group EXO, this decision deepens existing complications. While the group remains active under SM for the team’s promotions, the trio’s solo and unit activities continue under INB100.
The split of management and revenue lines has always been delicate. Now with this legal setback, there is likely more pressure on CBX to reconcile roles or risk long-term incoherence in their branding.
For Chen, Baekhyun, and Xiumin personally, the decision is a setback. They pursued legal options over more than a year and now face six adversarial rulings. That does not preclude future negotiations or settlements, but for now the public record suggests that their contract-termination bid has stalled.
Fans have reacted strongly. Some feel the trio has been unfairly constrained, while others believe the renewed structure under INB100 gives them more freedom. Regardless of personal views, the legal clarity now tilts in favor of SM’s status quo contract.
The big questions going forward
With this sixth decision in favor of SM, what are the next steps? Will CBX pivot toward independent promotions under INB100 while strictly adhering to the 10 % share agreement with SM? Or will both parties reopen negotiations in light of public and fan pressure?
One major unknown is how this outcome will affect EXO’s group scheduling. Recent news suggests that upcoming promotional activities might exclude Chen, Baekhyun, and Xiumin, though that remains unconfirmed. The extent to which group-level activities integrate all members will be watched closely.
According to one source, EXO’s upcoming fan meeting and album may proceed with only six members — a decision that already triggered backlash among fans.
Another implication lies in the broader contract negotiations within K-pop. Will agencies tighten transparency provisions to stave off future disputes? Or will artists demand more co-ownership and auditing rights? The CBX case may serve as a cautionary tale for both sides.
Final Thoughts
The six-round loss by CBX in their legal battle with SM is not only a turning point for EXO’s internal dynamics but also a moment that shines a spotlight on artist-label relations in K-pop. As the team navigates the next phase of their careers, all eyes are on how the trio will respond commercially and creatively.
For SM, the decision reinforces the strength of its contractual framework but also raises questions about its relationship with long-standing artists.
Stay tuned for updates and remember to check out Saranghero for the latest K-pop and K-drama news.