The conflict between CBX (EXO members Baekyun, Chen and Xiumin) and SM Entertainment has turned EXO’s 2026 comeback into a disaster. This feud has dragged on for over two years. At this point, it’s like watching two parties insist they’re the victim while burning the same bridge beneath them.
This isn’t a story with a clear villain and victim. It’s a mess created by poor decisions on both sides. Now this mess is overshadowing what should be a celebratory moment for EXO and their fans.
How Did We Get Here?
In June 2023, Baekhyun, Chen, and Xiumin announced they were terminating their contract with SM. Baekyun in particular claimed the agency pressured him to renew his contract while he was in the military.
They claimed there was a lack of transparent accounting over their entire time with the company This stemmed from SM’s then CEO accusing founder Lee Soo-Man of tax evasion, in addition to shady dealings involving his production company Like Planning.
CBX filed legal complaints, applied for injunctions, and demanded access to full accounting records. They even complained to the Korea Fair Trade Commission about abuse of market dominance.
Unfortunately, the courts weren’t buying CBX’s claims. The Seoul Eastern District Court ruled that CBX could only access financial data generated after their new contract, dismissing everything else as speculative. The Fair Trade Commission and Ministry of Culture, Sports and Tourism found no violations or breaches by SM. Most of their legal actions have been dismissed or resolved in favor of SM.
What’s really hurting CBX’s case is their lack of written evidence. They’ve repeatedly insisted that verbal agreements were made. That SM promised different terms or failed to honor certain conditions. When it comes to legal cases, words mean nothing without documentation.
SM’s Old Habits
Now, does this mean SM is innocent? Absolutely not. SM Entertainment has a well-documented history of engaging in shady business practices. This is the same company that’s been involved in multiple contract disputes with their artists over the years.
They’re also petty. When their artists leave (especially on bad terms) SM will use every dirty tactic in the book. Media play. Emotionally manipulative statements made for the public. Strategic moves designed to turn public opinion against the departing artist.
When SM responds to CBX’s allegations, they always frame the trio as the bad guys. As if the trio were betraying EXO. It mirrored their past tactics. Guilt-tripping artists through their fans, painting themselves as protectors of the group.
The irony here is rich. SM is inflicting the exact same pain on EXO and the fandom that they accused CBX of causing. They’re holding this conflict over everyone’s heads. Meanwhile, EXO is trying to reunite for their first comeback now that all the Korean members have completed military service.
The Revenue Battle Nobody Understands
At the center of this legal nightmare is a dispute over revenue distribution that’s confusing as hell.
SM is demanding that CBX pay them 10% of revenue from their solo activities. The thing is Baekhyun, Chen, and Xiumin are now under a different agency (INB100, which Baekhyun established in 2023). CBX wants this fee to be 5.5% instead.
In June 2024, CBX’s representatives held a press conference renewing their allegations against SM. There was a strong focus on issues with the distribution fee and other problems with compensation. SM responded by doubling down on their insistence that CBX was contractually obligated to pay the full 10%.
After two failed attempts at mediation in September and October 2025, CBX agreed to accept all of SM’s conditions in October. The goal was to allow the trio to participate in promotions for EXO’s upcoming album scheduled for early 2026.
Here’s where it gets even messier: CBX is being excluded from EXO’s activities. SM announced a fan meeting in December and a full album without Baekhyun, Chen, and Xiumin. SM claimed it was because of CBX’s refusal to pay the 10% fee. CBX states this is a lie. They’re waiting for the legal process to resolve themselves and for an official agreement.
If CBX agreed to SM’s terms, why are they still excluded? What court approval are they waiting for? Why is this dragging on?
The Real Victims Here
The people suffering most from this aren’t CBX or SM Entertainment. It’s EXO as a group and their fans.
This should be a celebratory moment. All the Korean members have completed their mandatory military service. Lay will be rejoining the group after four years. After all this waiting, EXO is finally reuniting as a full group.
Instead, it’s become a confusing, frustrating spectacle that nobody fully understands. Fans don’t know if CBX will be part of the comeback. Some fans don’t want CBX anywhere near EXO. The other members are caught in the middle of this legal battle.
I genuinely hope that CBX and SM can reach a mutual agreement. I don’t know if it’s possible for CBX to return for EXO’s comeback in 2026. Or at any point in the future…
If there is a chance, I hope CBX can make amends with the other EXO members and the fans. If not, then at the very least, they can leave on better terms this time.
