SM Entertainment has decided to sell KeyEast, a renowned actor management agency. This move comes as SM Entertainment refocuses on its core music business. The K-pop agency acquired KeyEast in March 2018.
KeyEast is home to several top Korean actors, including Bae Jung Nam, Ji Hye Won, Kim Sae Byuk, Stephanie Lee, and more. The agency also previously managed Kim Soo Hyun, Park Seo Joon, Goo Hara, Hwang In Yeop, Uhm Jung Hwa, and more.
On February 17, SM Entertainment announced that it has chosen Cheongdam Investment and KNT Investment as priority negotiation partners for the sale of KeyEast. Anjin Accounting Corporation will serve as the sales manager.
The label stated that its subsidiary, SM Studios, the largest shareholder of KeyEast, will proceed with negotiations with the preferred negotiation partners regarding key contract terms and conditions.
As of the third quarter of last year, SM Studios held a 28.38% stake in KeyEast, making it the largest shareholder. Additionally, SM Entertainment Japan, SM’s Japanese subsidiary, owned a 5.33% stake in the company.
SM Entertainment is expected to sell its entire 33.71% stake in KeyEast, held by its subsidiaries SM Studios and SM Entertainment Japan. This move is seen as a strategic effort by SM, which is celebrating its 30th anniversary this year, to reorganize and refocus on its core music business.
