On May 2, TMZ filmed EXID's arrival at LAX airport in Los Angeles, California.
Group member Junghwa greeted fans and the camera in English, expressing her happiness from seeing so many fans waiting for them.
It was however, what happened behind-the-scenes that have got K-pop fans riled up, reports allkpop.
The TMZ reporter began imitating Junghwa's response with a stereotypical accent.
A fellow staff says, "No, no.." disapprovingly, while some laugh.
The reporter tries to defend her actions, saying that if it was a British girl she would do a British accent.
According to Jpopasia, the clip has went viral and the response has been overwhelmingly negative against TMZ.
The CEO of Yedang Entertainment, Jeon Seung Hwi, made an official statement in response to TMZ's racist coverage of the group:
"The video in question is racist and I feel it is extremely wrong to make fun of someone’s happiness at seeing fans.
"We didn’t even realize there were reporters present and never thought Junghwa’s pronunciation would be subject to ridicule.
"I also watched the video with the members and Junghwa feels extremely upset," he said.
The CEO also stated that he will be getting in touch with TMZ regarding the incident and could possibly take legal actions if appropriate.
EXID's label also did not find the situation humorous. In a phone call with Star News, they said,
"We saw what happened. We're very angry that they would make fun of Koreans' way of talking and their tone.
"This is not something to laugh about. It is a clear case of racism. We are going to go through Korean media in America to contact TMZ and demand a response."
Netizens have also been critical of TMZ. While the majority of people are against TMZ's mockery of Junghwa's English, some have also express that calling the incident racist was taking things too far and that it has been blown out of proportion.