HYBE CEO Park Jiwon announced they have officially acquired Lee Soo Man‘s shares in SM Entertainment, becoming the largest shareholder in SM.

In a statement shared on HYBE’s social media accounts to not only fans, but also employees, artists, and shareholders, HYBE CEO Park Ji Won announced the transfer of shares between Lee Soo Man and HYBE was completed.

He wrote in the beginning of the letter that: "Dear SM Entertainment fans, employees, artists, and shareholders,

I am Jiwon Park, CEO at HYBE. I am pleased to share that today, February 22, 2023, HYBE completed the acquisition of a 14.8% stake in SM Entertainment ("SM") held by SM's founder and former Chief Producer Lee Soo-man, and became the single largest shareholder in SM. 80 As promised on February 10, HYBE resolved the governance issue between former Chief Producer Lee's and SM, during the course of the share acquisition. SM will be moving to become a company with a transparent governance structure that prioritizes shareholder value. I would like to share more details on the similarity between HYBE and SM's corporate philosophy, and the synergy we can collaborate to create in the coming future."

Moreover, Park Ji Won shared three points that HYBE would commit to following the takeover of SM Entertainment’s shares, including working together to innovate new strategies and allowing SM Entertainment to work autonomously as they have with the other companies they have acquired, such as Pledis Entertainment.

3 things are mentioned, including: "Collaborative Innovation based on Mutual Corporate Philosophy:

As leaders and pioneers of the K-pop industry, both HYBE and SM have been triumphing on the global stage. HYBE's vision to become a leading global entertainment lifestyle platform company under its mission "we believe in music" is closely interconnected with the goal of SM 3.0 to 'leap forward as a fan- and shareholder-centered global entertainment company. Additionally, integrating HYBE and SM's creative capabilities and content-oriented culture will showcase a historic innovation in the global scene.

Allowing Complete Autonomy of Creative Work based on Multi-Label System:

HYBE has been successfully operating its multi-label system by giving autonomy to respective labels. Our key factor behind the success is to guarantee complete autonomy over the creator's work with passion. HYBE does respect SM's legacy and creative values. We will share our business model and networking capacities with PAR SM to help its distinct, creative work lead the world.

Leaping Forward as a Game Changer on the Global Stage:

Leveraging our expertise and global network, HYBE will actively support SM artists' endeavors in making a presence in the global music industry. Both companies will work together towards establishing the global ground where our artists can introduce their music. "

He also shared that HYBE and SM Entertainment will work together to expand their artists’ reach, sharing their experience in reaching different areas of the world. They will also expand their artist interaction platforms, Weverse and Bubble, globally.

Finally, he apologized to SM Entertaiment’s artists who have been troubled by the ongoing controversy between HYBE, SM Entertainment, and Lee Soo Man. 

In the end of the letter, CEO said that: "I would like to express my regret to SM artists in particular, who may have been troubled by the turn of events. We respect SM's artists as much as we do our artists at HYBE. Leveraging the expertise we have accumulated, we will do our best to create a brighter future for all artists under SM. This is an era of change for both companies. We wish any short-term business decisions or prejudgement by some leaders would no longer cause confusion and uncertainty. I hope the management can come to a wise and reasonable conclusion to ensure that our shared visions and business directions are on the right track. 온 As stated in our DNA, 'Win Together,' HYBE is full of winning spirits on succeeding together. We hope to enjoy more success with fans, employees, artists, and shareholders of SM in the coming future. If we work side by side, we can continue to lead K-pop's global phenomenon.

Thank you.

Sincerely, Jiwon Park".