Kakao completely denies ‘SM Entertainment sale rumor’

Kakao officially denied the rumor of selling SM Entertainment.

Kakao announced in a public announcement on the 29th, "The rumor that SM Entertainment (hereinafter referred to as SM Entertainment) is being sold is not true."

Rumors of Kakao selling SM Entertainment have been around since the end of last year. This is because the entire group fell into a crisis, with Bae Jae-hyun, head of investment, being arrested as controversy over market manipulation arose during Kakao's acquisition of SM Entertainment.

Additionally, Kakao is currently conducting an audit of SM Entertainment's financial statements and executives at the request of the Board of Directors' Audit Committee.

Kakao also requested, through an external law firm, to submit data on the appropriateness of the investment made without prior consultation with the headquarters after SM Entertainment was incorporated into Kakao.

However, Kakao continues to deny the rumor of SM Entertainment being sold, and is keeping quiet about the rumor of SM Entertainment's management dismissal, saying that the audit results have not yet been released.

Reporter Junho Yoon, Ten Asia delo410@tenasia.co.kr