The Seoul Central District Court has questioned SM Entertainment about the alleged "uneven" distribution of profits between company and its artists during the third hearing on a lawsuit against former EXO members Kris Wu and Lu Han.

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The legal battle between the South Korean entertainment agency and its former Chinese talents Lu Han and Kris Wu is still ongoing with neither side ready to make a concession.

The third court hearing for the contract nullification cases filed by Lu Han and Kris was held on Friday at the Seoul Central District Court. According to sources, the presiding court probed SM Entertainment regarding the alleged unfair distribution of profits between the company and its talents.

The court cited that the profit distribution between the talent agency and its artists differed by a huge percentage for local and overseas activities.

The data that was presented in court allegedly states that artists only get three to five percent of local sales and 10 percent for net profits garnered from songs. On the other hand, artists get around 50 to 60 percent of the net profits from overseas promotions.

The court has asked SM Entertainment to explain the huge gap in profit distribution. Representatives of the company said they will be submitting a written report on the matter.

Lu Han and Kris' legal representatives told the court that SM Entertainment failed to keep its promise with regard to their clients' payments.

Lu Han and Kris' representatives claim that the company promised to pay them once every six months, but failed to do so, and paid them once a year.

However, SM Entertainment has provided documents proving that they paid both artists in 2013.

Meanwhile, Lu Han and Kris' legal reps have requested for a fourth and final plea after claiming that they have more evidence against SM Entertainment. The final hearing is scheduled for April 8.

TagsEXO, Lu Han, Kris Wu, SM Entertainment