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Kakao Entertainment acquires over 39 percent of SM Entertainment; receives approval from Korean Fair Trade Commission
Kakao Entertainment has become the biggest shareholder in SM Entertainment after being approved by the Korean Fair Trade Commission. Know the details here.
SM Entertainment is one of the leading companies in K-pop and houses world-renowned artists like NCT, RIIZE, EXO, Girls’ Generation, and more. In the latest developments, Kakao Entertainment has acquired a large share of SM Entertainment’s shares with corrective measures.
Kakao Entertainment becomes a major shareholder in SM Entertainment; gets approved by the Korean Fair Trade Commission
On May 2, 2024, Kakao Entertainment received approval from The Korean Fair Trade Commission for its merger and acquisition with SM Entertainment. Thus, Kakao Ent.’s 39.86 percent stake in SM Entertainment is approved, with corrective measures and regulations to be followed for the following years.
The KFTC has put two conditions in front of Kakao Entertainment: First, Kakao is banned from delaying or refusing music supply requests from competing music streaming platforms unless there is a valid reason.
Second, Kakao Entertainment has been ordered to establish an independent body made up of at least five members from outside the organization to monitor any kind of favoritism to Melon for 3 years.
Know more about Kakao Entertainment
Kakao Entertainment is one of the major South Korean Entertainment companies that deals in music, webtoons, dramas, web novels, movies, and other entertainment-related products. It also offers actor management and talent acquisition services, among others. 
One of its biggest products is the music streaming site MelOn. It is the largest music streaming site in South Korea, with over 25 million subscribers.
Kakao Entertainment has various subsidiaries like IST Entertainment (The Boyz agency), STARSHIP Entertainment, Antenna Music, EDAM Entertainment, Management SOOP, Kross Pictures, and many more.
More about SM Entertainment
SM Entertainment is one of the leading producers of music at the moment in the K-pop scene. It is the house of major artists, groups, and soloists, including SNSD, EXO, SHINee, Red Velvet, aespa, RIIZE, Zhou Mi, and NCT among others.
Meanwhile, SM Entertainment launched a new music label on May 1, 2024, named KRUCIALIZE, through which it plans to open new doors of possibilities in the ever-challenging world of K-pop.
SM Entertainment was established by Lee Soo Man in 1995; however, it began as SM Studio in 1989.
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ALSO READ: NCT’s agency SM Entertainment officially launches new music label KRUCIALIZE
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