SM Entertainment Grants 50 Stock Shares Per Employee

Excluding Executives... Total Amount of 2 Billion Won

SM Entertainment announced on the 9th that it will grant 50 shares of its own stock per employee.

This is to encourage employees who have dedicated themselves to successfully establishing the multi-production system, a core strategy of 'SM 3.0,' and to motivate future growth.

Most employees, excluding executives, will receive 50 shares each in the form of a stock grant. This is the first time since its founding that SM has granted its own shares in stock grant form exclusively to employees excluding executives.

A stock grant is an incentive method where company shares are given directly and free of charge. When the stock price rises, employees can gain greater profits directly, which is expected to promote the company's growth and long-term retention.

Additionally, SM plans to retire 235,895 shares of treasury stock, equivalent to 1% of its shares (approximately KRW 20.73045 billion), to enhance shareholder value. This follows the retirement of 241,379 shares (approximately KRW 14.95367 billion) in February, marking an additional shareholder return measure about six months later. The remaining approximately 460,000 treasury shares will be used for future growth investments or retired after further review.