Speaker Bang in CNN Interview: "K-pop Awareness Needs to Increase"
"Correction Needed on Monopoly Rumors, Not a Hostile M&A"
"Sad to See Lack of Good Governance in Great Companies Like SM"
Bang Si-hyuk, chairman of HYBE (pictured), appeared on a U.S. broadcast to directly clarify the controversy surrounding the acquisition of SM Entertainment (hereinafter SM), stating that it is not a "hostile M&A (merger and acquisition)."
In an interview with CNN released on the 3rd, Chairman Bang addressed SM's characterization of HYBE's actions as a "hostile M&A," saying, "Basically, a hostile M&A occurs when a company is acquired against the will of the major shareholder or controlling shareholders. We acquired the major shareholder's shares through a legitimate process with their consent. Labeling this as a hostile M&A is a propaganda term," drawing a clear line.
He continued, "On the contrary, it is a serious problem when the management team operates and makes decisions freely in a company with dispersed ownership without the major shareholder," he pointed out.
Regarding the monopoly controversy raised by SM's current management, Chairman Bang explained, "The notion that we are trying to take over the entire industry is misinformation," adding, "Even if you combine the CD sales volumes of SM and HYBE in Korea, excluding the quantities exported overseas, it is difficult to consider it a monopoly."
When asked about the possibility that SM might not want Chairman Bang even if he holds 40% of SM's shares, he said, "Securing shares is not the priority. The general shareholders' meeting is the most important, and only if we gain actual support at the shareholders' meeting can the board of directors we desire be formed," emphasizing, "I have been saddened for a long time that a great company like SM did not have good governance, and through this share acquisition, we have resolved most of the governance issues."
Chairman Bang further introduced HYBE as "(a company) originally known for not interfering with artists' autonomy and helping to become a company with good management procedures and processes." This statement is interpreted as a response to concerns about changes in SM's unique musical style.
He also expressed his stance on concerns about the decline in K-pop's popularity. Chairman Bang said, "Looking at export indicators and streaming growth rates, the slowdown in the growth rate of the K-pop genre is clearly visible. It would be fortunate if this is a temporary phenomenon due to BTS's military enlistment, but there are concerns about whether it is indeed temporary."
He added, "From that perspective, there was an active effort to acquire SM. (We need) to definitely increase recognition in the global market compared to now," he concluded.
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