Kakao Corporation is planning a major overhaul of SM Entertainment's management, marking a pivotal move since its acquisition more than ten months ago.
The present leadership team at SM Entertainment, which had joined forces with a hedge fund, Align Partners, and proposed an advanced governance structure, comprises influential figures who ousted the company's founder and former executive producer, Lee Soo Man.
These targets for removal encompass key personnel such as Lee Sung Soo, former CEO and current Chief A&R Officer (CAO), Jang Cheol Hyuk, the current CEO, and the Chief Creative Officers (CCOs), Tak Young Jun and Park Jun Hyung. Despite championing "advanced management" and a "transparent governance structure," they have allegedly been involved in opaque management activities, resulting in their impending dismissal.
Reports suggest that they embarked on obscure investments in personal affiliated companies without obtaining approval from Kakao, the parent company. Consequently, Kakao has determined that maintaining the current management team is untenable. Earlier this month, the company initiated a forensic audit of the individuals in question, in accordance with Article 21 of the External Audit Act, facilitated through the law firm Kim & Chang.
It is known that Kakao discovered several other issues in addition to the transactions during its own audit and fact-finding process.
Netizen reactions include:
"Lol, Lee Sung Soo is really going downhill after expressing his dislike towards HYBE"
"Not the fault of the artists..."
"No....SM cannot go downhill for the sake of my artists"
"I'm not sure if Kakao is all clean though"
"Ugh. Kakao and SM are all the same"
"What are they doing and why are they wasting their time lol"
"I expected this. Lee Sung Soo with his power over SM tried to amass wealth and popularity through viral marketing. I hope they really investigate that and take back what he gained"
"The ultimate portrait of those who ousted Lee Soo Man......"
"To me, I found it funny even then that people thought Kakao would be any different from Lee Soo Man himself while trash talking the old CEO"
"I didn't understand then why people were talking about how Lee Sung Soo was something like saving grace for SM by ousting Lee Soo Man but I now think that that could have been a viral marketing from Lee Sung Soo"
"SM is looking more and more shabby..."
"Take my artists out of this company now"
"Lol, I knew that SM would become weaker once Lee Soo Man stepped out. It didn't make sense that by thinking that all would go well after kicking out the grandpa lol I'm sure he was the one tried to understand everyone and go with the flow all along"
"I also find it funny the way these SM personnel openly criticized Lee Soo Man back then lol they are nothing without him and now getting played by Kakao"
"It has gotten too easy to target SM Entertainment after Lee Soo Man..."
"I wonder what would have happened if SM went to HYBE instead"
"SM's situation is worse now after Lee Soo Man..."
"I think the SM personnel tried to be a bit too greedy"
"HYBE should have taken SM"
What are your thoughts?
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