BTS’ agency HYBE becomes top shareholder of K-pop rival SM Entertainment
HYBE K-pop groups BTS and NewJeans, SM Entertainment K-pop groups EXO and Girls’ Generation. Images: Twitter/@BigHit_Music, NewJeans’ official website, Twitter/@weareoneEXO, Twitter/@GirlsGeneration
Hybe Corporation, the agency behind K-pop global sensation BTS, has acquired a 14.8% stake in rival SM Entertainment’s assets from its founder Lee Soo-man for ₩422.8 billion Korean won (approximately P18 billion).
The acquisition was confirmed by an official statement from Hybe via Korean media outlet Sports Chosun on Friday, Feb. 10. “[Hybe founder] Bang Si-hyuk and former SM Chief Producer [Lee Soo-man] mutually agreed on the shared vision for the future of K-pop industry, followed by signing of the stock purchase agreement,” the statement read.
As a result, this makes Hybe the largest shareholder of SM Entertainment, as the former bought a 14.8% share from an 18.4% stake previously held by the latter’s previous largest shareholder and founder Lee Soo-man.
Lee controls 18.4% of the company coined with his initials and has been in dispute with its current management in recent years over issues involving the company’s business dealings with his private company.
Meanwhile, Korean media conglomerate Kakao Corporation is the second-largest shareholder of SM Entertainment after acquiring a 9.05% stake from the music label.
SM Entertainment, founded by Lee Soo-man in 1989, is known as one of the leading music labels in South Korea, and is home to K-pop acts TVXQ!, Super Junior, Girls’ Generation, SHINee, EXO, Red Velvet, NCT, and aespa, as well as soloists Boa and former H.O.T. member Kangta, and more.
Hybe, on the other hand, owns multiple subsidiaries such as Big Hit Music, Source Music, Pledis Entertainment, Belift Lab, KOZ Entertainment, and ADOR, which are collectively known as Hybe Labels. The label is home to Korean music acts BTS, Seventeen, Tomorrow X Together (TXT), Enhypen, Le Sserafim, NewJeans, fromis_9, and Zico, among many others.
According to a report from news agency Reuters, Soo-man has been in dispute with SM Entertainment’s current management in recent years due to the label’s business dealings with his private company.
Prior to the acquisition, SM’s current CEO Lee Sung-soo, who is known as Soo-man’s nephew, and COO Tak Young-jun reportedly unveiled its plans for a restructured “SM 3.0” which included terminating its contract with Soo-man in October 2022, per British publication NME. EDV
