SM Entertainment Proceeds with Asset Garnishment Against EXO Members Chen, Baekhyun, and Xiumin...Conflict Background Explained

Asset Garnishment Proceeding Between SM and EXO Members

SM Entertainment has reportedly proceeded with asset garnishment procedures against EXO members Chen, Baekhyun, and Xiumin. The assets subject to garnishment include Chen's jeonse deposit bond on his residence, Baekhyun's apartment in Guri, Gyeonggi Province, and Xiumin's apartment in Yongsan-gu, Seoul and other real estate assets. The total garnishment amount reportedly reaches 2.6 billion won, specifically distributed as 300 million won for Chen, 1.6 billion won for Baekhyun, and 700 million won for Xiumin.

This measure is reportedly intended to preserve claims equivalent to 10% of individual activity revenue as defined in the settlement agreement concluded by both parties in June 2023. Asset garnishment is a legal measure requested by creditors to prevent debtors' assets from being lost or disposed of during legal proceedings.

The 2023 Conflict Between SM and Chen, Baekhyun, and Xiumin

The conflict between SM Entertainment and Chen, Baekhyun, and Xiumin is known to have started in June 2023. At the time, the three members pointed out issues with SM including improper settlement without objective evidence and unfairly lengthy contract terms. Additionally, they raised the point that SM failed to fulfill its obligation to provide settlement-related documents and notified the company of their intention to terminate the exclusive contract.

In response, SM Entertainment claimed to have sufficiently provided settlement documents, and instead raised allegations of tampering, suggesting that Big Planet Made Entertainment, the parent company of INB100 (the new agency for the three members), attempted improper inducements. Amid these conflicting claims, the conflict between both sides intensified.

Settlement Details and Significance from June 18, 2023

As the conflict intensified, SM Entertainment and Chen, Baekhyun, and Xiumin reached an agreement on June 18, 2023. According to the settlement, group activities for EXO would be conducted by SM, while individual activities would be conducted by INB100. Additionally, it was decided that 10% of the individual activity revenue of the three members would be paid to SM. This agreement was evaluated as a compromise acceptable to both parties at the time.

Following the settlement, Chen, Baekhyun, and Xiumin were able to build new careers through individual activities, but a structure was formed where legal and economic relationships with SM would continue. In particular, the clause regarding 10% payment of individual activity revenue served as a complex condition that could become a source of future disputes.

Conflict Rekindled Since 2024

In June 2024, Chen, Baekhyun, and Xiumin's side reignited the conflict, claiming that SM Entertainment was not properly implementing the 2023 agreement. Specific breaches pointed out included SM's failure to uphold the commitment to guarantee INB100 a 5.5% distribution and licensing fee rate for albums and music. Following this, Chen, Baekhyun, and Xiumin's side filed criminal charges against SM executives on fraud allegations.

However, the prosecution's investigation resulted in a non-indictment disposition due to insufficient evidence. The case appeared to be closing, but the dispute resurfaced when discussions about EXO's complete group comeback (all 13 members) in October 2025 resulted in the three members' participation failing to materialize.

SM Entertainment's Position and Current Situation

SM Entertainment has maintained that all legal rulings in the course of this dispute have been favorable to them. From this stance, SM has specified that the only requirement is for Chen, Baekhyun, and Xiumin to pay 10% of their individual activity revenue as stipulated in the June 18, 2023 settlement agreement. SM has simultaneously pointed out that this 10% payment has not been made to date, and appears to have taken asset garnishment measures to preserve this claim.

This case is being evaluated as an example showing how contract disputes between members and entertainment agencies in the entertainment industry can persist for extended periods and how legal procedures can become complex. How this dispute will be resolved going forward is expected to depend on future court judgments and whether negotiations between both parties will proceed.

This content is general information compiled based on publicly available sources. Please confirm the official announcements from relevant institutions for accurate details.