Kakao has decided to dismiss a large number of current executives, including SM's CEO Jang Cheol-hyuk, Tak Young-jun

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  • AllKill VIP

    so it is true that all those so called top dogs, are using company money as if it was their own...


    this is ridiculous

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    Honestly the tea is piping hot and hilarious. Can't wait for the SM 3.0 defenders to finally wake up.


    Cried all over the internet about the evils of Hybe and how SM was going to change. Fans of certain groups screaming to give them time for SM 3.0 whilst the rest of us have been saying literally nothing has changed apart from the friendship group stealing from the company.

    from reddit

    -The current management execs that will be kicked out include current CEO Jang, COO Tak, CAO Lee (Lee Sung Soo), and CCO Park

    -SME acquired an entertainment company that is worth 3.12 million won in cash for 2.2 billion won in september. Owner of said acquired company previously helped oust LSM

    -An official of a major agency said, "We are aware of a number of cases where people who received hundreds of millions of won in salaries without any specific work at SM Entertainment's overseas subsidiaries were dismissed because they were close to the CAO," adding, "In particular, we know that there was a large exodus of experienced employees as the people who caused damage to the company were heavily used because they were close to the C-level."

    -Kakao is also reported to have had a conflict over SM Entertainment's acquisition of Studio Clone in April last year. SM Entertainment invested KRW 4 billion through its subsidiary Studio Kwangya to take over the management rights of Studio Clone, a metaverse content production company. In the process, former CSO Jang Jae-ho, who oversaw SM Entertainment's investment, and CAO Lee concluded the transaction without discussing it with Kakao, causing conflict.

    -Former CSO Jang Jae-ho, who oversaw and decided all investment activities and other management behind the scenes after taking control of SM Entertainment, did not agree with Kakao's forensic request and left the company in November last year. It is said that he set out to "cut his tail" in order to escape from the illegality. The CAO also sold his entire stake in the market earlier this month. (LSS also sold all his stakes recently)

  • AllKill VIP
    Quote from onwards

    Honestly the tea is piping hot and hilarious. Can't wait for the SM 3.0 defenders to finally wake up.


    Cried all over the internet about the evils of Hybe and how SM was going to change. Fans of certain groups screaming to give them time for SM 3.0 whilst the rest of us have been saying literally nothing has changed apart from the friendship group stealing from the company.

    but I think most people just wanted to get rid of LSM who was known for wanting to create Chinese Hollywood, and was guilty for huge tax evasion

    + many, me included wanted SM to move more towards gg's because it's ridiculous that such big company doesn't really have any female artists, just two girl groups with very limited amount of members, and remnants of SNSD members who still have contracts with SM

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    Like 1

    papago translation

    Although the company proposed "advanced management" and "transparent governance," it was dismissed for engaging in opaque management activities. Sm made dubious investments in a private company of its close aides without the consent of its parent company. Kakao is said to have concluded that the company should not be left alone after conducting a forensic investigation into the current management.Earlier this month, Kakao launched a forensic audit into major human resources of SM Entertainment in accordance with Article 21 of the External Audit Act . Kakao has reportedly found a number of other problems besides the transaction during its own audit and investigation.

    SM Entertainment executives are suspected of paying excessive premiums by acquiring TenX Entertainment (10x Entertainment), a private company owned by Choi and Yoon, who contributed to driving out Lee Soo-man, and The Hub, which is known as a company run by acquaintances of CAO. 10x Entertainment was a company whose artist was Kim Woo-jin, a former Stray Kids, held only 3.12 million won in cash, but SM Entertainment acquired it for 2.2 billion won in September last year. Although Kakao is the largest shareholder of SM Entertainment, it had not received any report from SM management and had only grasped the actual situation through reports. Kakao also took issue with the fact that all of these decisions were made without prior due diligence by external accounting firms that judged the appropriate value.

    In April last year, Kakao reportedly had a conflict over the acquisition of Studio Clones by SM Entertainment. SM Entertainment invested 4 billion won (approx. 4 million U.S. dollars) through its subsidiary "Studio Crazy" to acquire management rights of Studio Clones, the maker of metaverse contents. In the process, Jang Jae-ho, former CSO who oversaw SM Entertainment's investment, and Lee CAO ended the transaction without discussing with Kakao.

    In addition, SM Entertainment was further revealed to have invested in startups where Choi, the head of the center, is a shareholder and an in-house director through SM Culture Partners, an in-house investment company.


    Kakao expressed concern that if SM Entertainment executives neglect them due to problems in M&A and investment that they made excessively at the audit committee level, they will be affected by the financial statements linked to the headquarters in the process of amortization or loss. Kakao's management and the board of directors internally judged that neglecting or knowingly condoning it could lead to criminal punishment for breach of trust and other charges.

    Jang Jae-ho, former CSO who took over management rights of SM Entertainment and oversaw management including all investment activities behind the scenes, quit his job in November last year, disagreeing with Kakao's request for audit. Analysts say that the company is now "cutting off the tail" to escape possession of the company. Lee also sold his entire stake in the company earlier this month.

    "SM Entertainment executives are suspected of paying excessive premiums by acquiring TenX Entertainment (10x Entertainment), a private company owned by Choi and Yoon, who contributed to driving out Lee Soo-man, and The Hub, which is known as a company run by acquaintances of CAO. 10x Entertainment was a company whose artist was Kim Woo-jin, a former Stray Kids, held only 3.12 million won in cash, but SM Entertainment acquired it for 2.2 billion won in September last year."

    Iconic :gossip-raccoon:

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    Quote from bartkun

    but I think most people just wanted to get rid of LSM who was known for wanting to create Chinese Hollywood, and was guilty for huge tax evasion

    + many, me included wanted SM to move more towards gg's because it's ridiculous that such big company doesn't really have any female artists, just two girl groups with very limited amount of members, and remnants of SNSD members who still have contracts with SM

    Thats the difference between seeing what you want to see, hoping and reality.


    LSM wasn't going to be involved at all - Hybe made sure of that in their contract with him. LSM just wanted to screw over everyone who stabbed him in the back by making sure they'd have to leave too.


    They never promised more focus on GG's with the new leadership, ya'll just assumed and hoped so because they promised change but they are always going to focus more on BG's because its easier to build legacy fanbases with BG's. They were only using Aespa for headlines because they are more known by the GP than any NCT group, but the moment they were done? back to business.

    Quote from Onewbias

    Chris Lee and co's defenders are no where to be found now :pepe-tea:

    I wonder how much SM will change that Kakao has total control of it now hmm. So much for that "guarantee independence" empty promise :pepe-narrow-eyes:

    I'm more curious who they'll replace them with. Whoever it is will be going into a quicksand whilst trying to keep the old SM sound meanwhile majority of the people who were in charge of keeping that consistent are gone.

    I'll laugh so hard if they end up getting YYJ and LSM back as consultants on very tight leashes. :pepegrin:

    Quote from onwards

    I'm more curious who they'll replace them with. Whoever it is will be going into a quicksand whilst trying to keep the old SM sound meanwhile majority of the people who were in charge of keeping that consistent are gone.

    I'll laugh so hard if they end up getting YYJ and LSM back as consultants on very tight leashes. :pepegrin:

    actually the old SM sound has already been changed since SM 3.0 started. SM stans are just in denial about it and i bet they will continue to be. They will accept everything and anyone now as long as it's not the big bad evil Hybe :sweat:.


    Kakao and the nephews joined hands to kick out LSM so i doubt he wants to get back working under Kakao but we'll see. :eyes:

  • AllKill VIP
  • AllKill VIP
    Quote from onwards

    Thats the difference between seeing what you want to see, hoping and reality.


    LSM wasn't going to be involved at all - Hybe made sure of that in their contract with him. LSM just wanted to screw over everyone who stabbed him in the back by making sure they'd have to leave too.


    They never promised more focus on GG's with the new leadership, ya'll just assumed and hoped so because they promised change but they are always going to focus more on BG's because its easier to build legacy fanbases with BG's. They were only using Aespa for headlines because they are more known by the GP than any NCT group, but the moment they were done? back to business.

    it's not that

    official plans had one girl band and one girl group

    so people wanted this to be delivered

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    Like 1

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    So,

    - Initially, Lee Sooman took almost everything and threw scraps to his aides

    - After Lee Sooman was evicted, those crooked aides took the opportunities to get bigger pieces.

    - Kakao saw that S.M seeping too much money so, it tried to nip leeching chiefs.


    Now, Kakao reaches a dilemma. S.M administration is such a cesspool that anyone from this circle is suspicious. Yet, men from its own side are incompetent, can't even run much smaller IST well. Besides, it is uncertain if Kakao will sell S.M off.

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