SM Entertainment to Sell KeyEast to Focus on K-Pop Business

SM Entertainment is set to sell its actor management subsidiary, KeyEast, which represents stars like Kim Seo-hyung, Kang Han-na, and Han Sun-hwa. Industry insiders view this move as part of SM's strategy to concentrate on its core K-pop business.

On the 17th, SM announced that it has selected Cheongdam Investment and KNT Investment as preferred bidders for the sale of KeyEast. The sale is being managed by Deloitte Anjin LLC. SM stated, "Our subsidiary, SM Studios, which is the largest shareholder of KeyEast, will negotiate key contract terms with the preferred bidders."

KeyEast is currently 28.38% owned by SM Studios, with an additional 5.33% held by SM Entertainment Japan. SM is expected to sell its entire 33.71% stake in KeyEast, including shares held by its subsidiaries.

KeyEast's roster includes actors such as Kim Seo-hyung, Bae Jung-nam, Chae Jung-an, Kang Han-na, and Han Sun-hwa.

The sale of KeyEast is seen as SM's effort to streamline its focus on the K-pop industry. Earlier this year, YG Entertainment also exited the actor management business.

In the fourth quarter of last year, SM reported consolidated sales of 273.8 billion KRW and an operating profit of 33.9 billion KRW.

Reported by Jiye Choi, TenAsia wisdomart@tenasia.co.kr