HYBE considering purchase of stake in SM Entertainment

[HYBE]

HYBE may buy a stake in SM Entertainment amid an ongoing management dispute between SM Entertainment founder Lee Soo-man and other executives.

“HYBE is currently reviewing a share purchase of SM but nothing has been confirmed yet,” HYBE disclosed to the Korea Exchange on Thursday.

The K-pop powerhouse said that specifics will be revealed within a month.

Lee, currently the largest shareholder of SM Entertainment, with 18.46 percent of the stock, could lose influence after Kakao purchases 9.05 percent of the company.

Kakao announced Tuesday that it is buying 9.05 percent of SM Entertainment for 217.2 billion won ($172.8 million).

The transaction will be completed by March 6.

Lee’s stake after Kakao acquires the stake was not disclosed.

On the same day of Kakao’s announcement, Lee filed an for injunction to stop the transaction, according to his attorney at Yoon & Yang LLC.

In the midst of the dispute, HYBE, home to global K-pop acts such as BTS, Seventeen, Tomorrow X Together, Enhypen, NewJeans and Le Sserafim, may be getting involved.

If HYBE buys Lee’s shares, the company will take the place of Lee to become the largest shareholder of SM Entertainment.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]