On March 31, during SM Entertainment's general meeting of shareholders, an auditor nominated by external shareholders has been appointed to position for the next 3 years.
Previously, a minor shareholder of SM Entertainment, Align Partners Capital Management, nominated Kwak Jun Ho for appointment as chief auditor. Kwak Jun Ho is a business/finance executive who has worked for 'GS Homeshopping', 'SK Hynix', 'KCF Technologies', and more. According to Align Partners Capital Management's claims, SM Entertainment has thus far appointed auditors with close affiliation to the main body of SM Entertainment since its IPO in 2000, leading to "incomplete" and "ambiguous" reports of the company's financial activities.
Furthermore, conflict over the appointment of a new auditor has induced tension among SM Entertainment's shareholders leading up to the general meeting, as speculations claimed that SM's financial activities in the past have significantly favored greater pays for producer Lee Soo Man, thus damaging the company's overall market value.
In response to the latest developments, SM Entertainment has issued an official statement, confirming the appointment of auditor Kwak Jun Ho beginning in 2022.
Additionally, SM Entertainment's CEO Lee Sung Soo relayed, "We will consider the developments of this general meeting a turning point directed toward the building stronger relationships with our shareholders. We plan to carefully consider the various requests filed by our shareholders, and show growth and improvement in the near future."
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