Why Monday is the most dangerous day on a building site 
Shiba Inu Whales Dominate Market With $300M in Transactions Despite 9% Price Drop 
Nvidia's Fugatto AI Transforms Voices and Sounds, Ushering in a New Audio Era 
Benefits of BLDC fans in the monsoon: All you need to know! 
Drake Hits UMG, Spotify, and Apple With Bombshell Claims Over Siri Playing Kendrick Lamar’s ‘Not Like Us’ 
Water companies now have to release live sewage spill data – here’s why more transparency is the key to cleaner rivers 
Bitcoin Slides to $95K, XRP Falls Over 10% Amid $495M Liquidation Wave Impacting 197K Traders 
Tesla Exclusion from EV Tax Credit Proposal Blasted by Congressman as Musk Slams California's 'Insane' Plan 
Global economic trends shaping local transportation: Insights from the Netherlands 
Tesla Turns Shell Gas Station in Spain Into a Sleek Supercharger Hub, Redefining EV Charging 
Kia and Hyundai Unshaken as BYD Sets 2025 South Korea Launch in Competitive EV Market 
Google's DOJ Trial On Schedule: US Judge Rejects Delay Amid Trump Administration Shift 
Should France’s wine industry fear a new Trump tariff? 
Kakao Corporation is reportedly preparing to replace the executives of SM Entertainment Co. Ltd. with more competent leaders. The internet company can make this kind of decision as it became the largest shareholder of the entertainment agency last year after acquiring a 39.9% stake for $963 million.
According to The Korea Economic Daily, Kakao Corp. will appoint new executives to lead SM Entertainment. It was learned that the executives who will be fired are the same ones who ousted the company's founder, Lee Soo Man.
Reason for Job Termination
Kakao decided to dismiss the current executives of SM Entertainment as they have shown poor corporate governance. It was mentioned that those who will be replaced include Jang Cheol Hyuk, the chief executive officer; Lee Sung Soo, the chief artists and repertoire (A&R) officer; Park Jun Young, chief creative officer; and Tak Young Jun, the current executive director and chief operating officer.
Kakao Entertainment will establish a new leadership group because the company reportedly failed to curb cloudy acquisitions and investments by SM executives. These critical activities were done without any consultation with Kakao, so the deals have become dubious.
The mentioned top management officials are set to be replaced around 10 months after Kakao purchased a considerable stake in SM, beating HYBE Co. in the bid. Kakao will assign new leaders and seek better corporate governance through cooperation with Align Partners Capital Management, a local activist fund group.
Kakao's Concern
As part of the move for leadership reorganization, Kakao Corp. is also looking into SM Entertainment's financials. It has launched an investigation as it is concerned that some issues could arise from the SM executives' questionable acquisitions and investments.
These issues may hurt Kakao, primarily if anomalies are found in the dealings. Bloomberg reported that the company hired a law firm to check on SM Entertainment's financial books, and the request was made by the firm's board's audit committee.
Photo by: Kakao Newsroom
