Hive "Acquiring SM for K-pop Growth... Possible Collaboration with Kakao"

Hive CEO Park Ji-won Interview with Bloomberg News

[Asia Economy Reporter Koo Chae-eun] Park Ji-won, CEO of HYBE, stated that "acquiring SM is necessary to maintain K-pop's global influence and establish it as mainstream." He also mentioned that he would not oppose if cooperation with Kakao could further increase SM's value.

Park Ji-won, CEO of HYBE, said in an interview with Bloomberg on the 21st that although K-pop rapidly grew during the COVID-19 pandemic, concerns are emerging that its growth momentum is slowing and that K-pop's momentum has already peaked.

He added, "The most glorious times are the most dangerous times," noting that overseas markets have begun to learn from K-pop's success, putting its formulas and methods at risk of being exposed. CEO Park said, "I am afraid that someday people might stop listening to K-pop."

Lee Soo-man, Founder of SM, Bang Si-hyuk, Chairman of HYBE

CEO Park specifically mentioned, "I cannot speak in detail about matters that have not yet been ruled on by the court, but if a partnership with Kakao is a way to further increase the value of SM shares, there is no reason to oppose it."

The day before, SM Entertainment publicly opposed HYBE's additional tender offer, stating, "If HYBE secures management rights of our company, there is a very high possibility that our artists will be deprioritized in music and content production, weakening our business capabilities."

In response, CEO Park said HYBE will do its best to support SM artists and earn their respect and trust.

He said, "The $5 billion (approximately 6.5 trillion KRW) K-pop market accounts for a very small portion of the entire pop market," adding, "We still face a long global battle ahead. Diversity is a core principle for our survival."