This photo shows the headquarters of Hybe, the Korean entertainment agency behind supergroup BTS, in Seoul on Feb. 10, 2023. (Yonhap)
SEOUL, Feb. 14 (Korea Bizwire) — Park Ji-won, CEO of local K-pop powerhouse Hybe, has said his company will ensure the independence of its rival SM Entertainment even after becoming its top shareholder and that SM founder Lee Soo-man will stay away from management, according to sources in the music industry.
Park made the remarks during a briefing session for Hybe employees held Monday after the company announced last week that it will acquire a 14.8 percent stake in SM Entertainment to become its largest shareholder, according to the sources.
“We respect SM’s legacy,” Park was quoted as saying during the meeting. “We’ll ensure SM’s independence … Hybe has already proved the value of its multi-label system.”
He also stressed that his company will help SM keep and expand its own value, according to the sources.
As for the future path of the K-pop godfather, Park said, “There will be no participation in management and production by Lee. He will take no more royalties.”
Park then forecast “the main pillars of the K-pop industry will be able to benefit from the synergy effect (from the acquisition plan),” after spelling out fans, artists and employees of the two companies and the K-pop industry as the “main pillars.”
This is the first time that Park mentioned publicly his company’s plan to acquire SM.
On Friday, Hybe, the powerhouse behind the global K-pop sensation BTS, made the surprise announcement it will acquire a 14.8 percent stake in SM from Lee for 422.8 billion won (US$335.8 million) to become its largest shareholder.
It also offered to buy SM shares held by minority shareholders, seeking to buy up to 25 percent of the rival agency in an apparent effort to secure management rights.
The acquisition plan, however, has drawn sharp criticism from SM.
“We oppose all aggressive outside mergers and acquisitions including Hybe,” SM said in a statement.
Lee has been in dispute with SM’s current management in recent years over issues involving the company’s business dealings with his private company.
He has not held any official position at SM for more than a decade but has reportedly exerted a significant influence in managing and training the company’s K-pop artists.
The singer-turned-music producer founded the company in 1995 and has been behind the production of its leading artists, including H.O.T., S.E.S., BoA, Girls’ Generation, EXO and many others.
(Yonhap)
