ESOChen, Baekhyun and Xiumin, collectively known as CBX, have reportedly lost six consecutive lawsuits against SM Entertainment in their ongoing contract dispute. Despite filing complaints with the police, prosecutors, the Fair Trade Commission and the Ministry of Culture, Sports and Tourism, all charges have been consistently denied.
According to LawTimes, the courts have concluded this “There is no evidence of illegal or deceptive actions by SM Entertainment.” Repeated rulings have cited a lack of specific evidence to support CBX’s allegations, making it difficult for the three to advance their case.
The conflict began in June 2023, when CBX sought termination of their exclusivity contracts, claiming they had been misled into signing unfair long-term deals. SM countered by accusing external forces of influencing the three’s decision.
Following public and legal tensions, both sides agreed to a compromise: SM would continue to direct ESO‘s group businesses, while CBX’s individual businesses would be handled by their new agency. A revised contract was drafted, including a clause that 10% of the new agency’s revenue would be paid to SM for the duration of the agreement.
However, in June 2024, SM attempted to finalize the terms, only for CBX to respond with conflicting evidence and ultimately refuse to uphold the revised agreement. The trio argued that the revenue-sharing condition was unfair and exploitative.
Since then, the situation has turned into a protracted legal battle, with both sides attending numerous court hearings. As of now, momentum appears to favor SM Entertainment, with CBX facing mounting setbacks in its legal pursuit.
Sources: Lawtimes
