[SM Management Battle] Hyosung Chairman Cho Hyun-joon Responds to Bang Si-hyuk's Tender Offer... 19 Billion KRW Profit

Hyosung Group Chairman Cho Hyun-joon’s directly invested sports marketing company, Galaxia SM, transferred approximately 1% of its shares in SM Entertainment (hereinafter SM) to HYBE through participation in a tender offer.

According to the Financial Supervisory Service’s electronic disclosure system on the 2nd, Galaxia SM resolved at a board meeting on the 28th of last month to transfer 233,813 shares of SM stock (about 1%) to HYBE for 28.05756 billion KRW. Galaxia SM had purchased 237,153 shares (1%) of SM stock in 2015 for 9 billion KRW, meaning it sold the shares for about three times the purchase price.

Galaxia SM, an affiliate of Hyosung Group, has simply held shares in SM. It operates licensing and marketing businesses based on sports marketing. It is a sports agency famous for having sports stars such as Kim Yuna and Son Yeon-jae as clients in the past.

Since purchasing Galaxia SM shares in November 2015, Hyosung Group Chairman Cho Hyun-joon steadily increased his stake, holding 11.35% as of the most recent disclosure on November 21, 2022. Vice Chairman Cho Hyun-sang held 0.88%. Additionally, Galaxia SM shares are held by Hyosung Group affiliate Trinity Asset with 22.41% and Shindongjin Co., Ltd. with 6.30%. Trinity Asset is a company engaged in non-residential real estate management, with 100% ownership by Cho Hyun-joon, Cho Hyun-sang, and Cho Hyun-moon. Shindongjin Co., Ltd. is a real estate leasing company, also 100% owned by Cho Hyun-joon, Cho Hyun-sang, and Cho Hyun-moon.