SM Seizes EXO CBX Assets with a Billion Dollar Legal Move

• SM Entertainment has confiscated ₩2.6 billion (~$1.79 million USD) in personal assets from Chen, Baekhyun, and Xiumin, further escalating the contract issue.
• The conflict began in 2023, when EXO-CBX contested the contract's fairness and later agreed to pay SM 10% of solo earnings through INB100.
• The fallout is evident in EXO's Jan 2026 comeback lineup, which excludes the CBX sub-group.

SM Entertainment has taken a unique legal action by provisionally seizing ₩2.6 billion ($1.79 million USD) in private assets from EXO members Chen, Baekhyun, and Xiumin. This aggressive approach indicates a significant escalation in the long-running contract dispute over revenue sharing and membership conditions for these members, who also form the sub-unit, EXO-CBX.

As per industry reports, on Feb 9 and 10, 2026, SM proceeded to freeze assets such as Chen's housing deposit bond, Baekhyun's 142 sq. m. apartment in Acheon-dong, Guri, and Xiumin's 166 sq. m. apartment in Hannam-dong, Seoul, in order to secure claims equal to 10% of individual activity revenue as specified in a 2023 contract. SM Entertainment detailed its financial claims against each member of the sub-unit, with ₩300M (~$2,08,208.99) for Chen, ₩1.6B (~$1.10M) for Baekhyun, and ₩700M (~$4,85,820.97) for Xiumin.

Long-Running Dispute Triggers Legal Escalation for SM and EXO CBX

The current disagreement dates back to June 2023, when EXO-CBX notified SM of their intention to cancel exclusive contracts, citing "unfairly long contract periods" and a lack of settlement clarity. In a compromise, CBX transferred individual activities to INB100, a label created by Baekhyun, while consenting to pay SM 10% of solo revenue and keep EXO group activities with SM.

Tensions flared again in 2024-2025 when CBX (under INB 100 along with label’s legal representative, Lee Jae-hak) claimed that SM failed to meet promises, including a guaranteed 5.5% music distribution fee. They eventually then sued SM officials for fraud, which was dismissed owing to insufficient evidence. Multiple mediation meetings, including one in October 2025, failed to resolve the disagreement, forcing the case to trial.

EXO Activities and Market Impact

EXO's eighth full album, Reverxe, released in Jan 2026, has only six members in it (Suho, Chanyeol, D.O., Kai, Sehun, and Lay), further highlighting the removal of the CBX trio. Based on market data, Reverxe debuted amid high demand from fans for older K-pop groups to take the stage again. 

Reverxe appeared at the top spot on the Hanteo Chart with over 265,934 first-day sales and over 900,000 in its first week, while also dominating iTunes charts worldwide. The album also peaked at No. 1 on QQ Music, indicating a solid performance, although one that fell short of their 2023 album Exist.

By seizing assets, SM signals a solid expectation of winning the court battle and protecting its bottom line. The move raises the stakes in the dispute, leaving fans and investors with a lengthy wait for more details on the group's future.