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SM Entertainment sued over unpaid construction costs of SMTown LA; faces legal battle with main contractor
SM Entertainment is facing yet another lawsuit and this time for unpaid dues for the construction of SMTown LA. Read on for more details.
SM Entertainment is currently facing lawsuits over unpaid construction bills in Los Angeles, California. They owe several parties money for the construction of SMTown LA, which is a new extension of the company to be situated in the United States of America. However, they are facing legal issues with the new venture, due to which the project has been temporarily halted.
SM Entertainment faces lawsuit over unpaid construction costs
SMTown LA is a new entertainment venue being set up by SM Entertainment in Los Angeles, California. The new extension is the company’s ultimate move to take their business in the global market. Approximately one year later, the city of Los Angeles went to the extent of officially designating the intersection of 6th Street and S Oxford Avenue in Koreatown as "SM Entertainment Square”. This is the company’s milestone project, as the artists would have also been able to promote internationally and collaborate with Western artists more frequently as well.
However, the project has been abandoned at the moment due to the company's inability to make payments to several firms. According to the reports by a South Korean media outlet, the construction company that is involved with the interior work of the building, Pub Construction, is taking the entertainment agency to court. It is because of SM Entertainment’s inability to meet the deadline for making the necessary payments for the construction. 
Additionally, the architectural firm, contractors, and other firms who have worked on the SMTown LA have further confirmed the reports that the company has not paid several dues in the past. It is also possible that they will join Pub Construction to file a lawsuit against SM Entertainment for persistently missing the payment dues.
Moreover, the construction company also revealed that the project went through multiple changes due to SM Entertainment’s different demands. The K-pop agency owes several thousand dollars to Pub Construction and other firms as well.
Due to the executive changes at SM Entertainment and the acquisition by Kakao have caused multiple operational hindrances, which is why the construction company has halted all work currently. Moreover, on top of suing the entertainment agency, they will also file a formal complaint with the South Korean government about the situation.
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