SM, the First in the Entertainment Industry to Launch ESG Management... Practical Council Approved by the Board

ESG Report to Be Published Within the Year... At Least One Training and Consultation Session Every Half Year
National Pension Service Expands Stake in SM to 6.81%

Source: SM

[Asia Economy Reporter Myunghwan Lee] SM Entertainment (SM) is taking the lead in ESG (Environmental, Social, and Governance) management for the first time in the entertainment industry.

SM announced on the 15th that the agenda for the 'Formation of an ESG Working Council' to implement ESG management strategies and promote ESG activities linked to each business was approved and resolved at the board meeting held at the end of last month.

SM's ESG Working Council will play a role in analyzing the impact on environment, society, and governance during the business processes such as planning and production of music content and artist activities, and in identifying and promoting tasks for sustainable growth in the mid to long term.

The council will include heads of key departments responsible for major internal operations and plans to hold meetings at least once a month. The meetings will discuss specific implementation plans for ESG management, and key initiatives will be pursued under the reporting and approval of the board.

SM also added that to strengthen ESG expertise, it will conduct ESG education and consultations at least once every six months and plans to publish an ESG report within the year.

At the regular shareholders' meeting at the end of March, SM appointed an auditor through a shareholder proposal. This is explained as laying the foundation for SM's management to proactively respond to the growing voices of key stakeholders in corporate management, including customers, employees, and shareholders.

Meanwhile, recently, institutions led by the National Pension Service have been increasing their stakes in SM. According to the Financial Supervisory Service's electronic disclosure system, the National Pension Service purchased 157,161 shares of SM stock (worth approximately 11 billion KRW) on the 9th, increasing its shareholding ratio from 6.16% to 6.81%.

SM's management stated at the recent regular shareholders' meeting, "We will continue activities not only for K-pop fans but also for shareholders."