Nvidia Weighs Expanding H200 AI Chip Production as China Demand Surges 
Intel’s Testing of China-Linked Chipmaking Tools Raises U.S. National Security Concerns 
Fortescue Expands Copper Portfolio With Full Takeover of Alta Copper 
Nomura Expands Alternative Assets Strategy With Focus on Private Debt Acquisitions 
United Airlines Flight to Tokyo Returns to Dulles After Engine Failure During Takeoff 
Strategy Retains Nasdaq 100 Spot Amid Growing Scrutiny of Bitcoin Treasury Model 
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs 
SUPERFORTUNE Launches AI-Powered Mobile App, Expanding Beyond Web3 Into $392 Billion Metaphysics Market 
EU Signals Major Shift on 2035 Combustion Engine Ban Amid Auto Industry Pressure 
SpaceX Begins IPO Preparations as Wall Street Banks Line Up for Advisory Roles 
California Jury Awards $40 Million in Johnson & Johnson Talc Cancer Lawsuit 
United Airlines Tokyo-Bound Flight Returns to Dulles After Engine Failure 
Azul Airlines Wins Court Approval for $2 Billion Debt Restructuring and New Capital Raise 
CMOC to Acquire Equinox Gold’s Brazilian Mines in $1 Billion Deal to Expand Precious Metals Portfolio 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
Coca-Cola’s Proposed Sale of Costa Coffee Faces Uncertainty Amid Price Dispute 
Trump Sues BBC for Defamation Over Edited Capitol Riot Speech Clip 
Kakao Corporation is reportedly preparing to replace the executives of SM Entertainment Co. Ltd. with more competent leaders. The internet company can make this kind of decision as it became the largest shareholder of the entertainment agency last year after acquiring a 39.9% stake for $963 million.
According to The Korea Economic Daily, Kakao Corp. will appoint new executives to lead SM Entertainment. It was learned that the executives who will be fired are the same ones who ousted the company's founder, Lee Soo Man.
Reason for Job Termination
Kakao decided to dismiss the current executives of SM Entertainment as they have shown poor corporate governance. It was mentioned that those who will be replaced include Jang Cheol Hyuk, the chief executive officer; Lee Sung Soo, the chief artists and repertoire (A&R) officer; Park Jun Young, chief creative officer; and Tak Young Jun, the current executive director and chief operating officer.
Kakao Entertainment will establish a new leadership group because the company reportedly failed to curb cloudy acquisitions and investments by SM executives. These critical activities were done without any consultation with Kakao, so the deals have become dubious.
The mentioned top management officials are set to be replaced around 10 months after Kakao purchased a considerable stake in SM, beating HYBE Co. in the bid. Kakao will assign new leaders and seek better corporate governance through cooperation with Align Partners Capital Management, a local activist fund group.
Kakao's Concern
As part of the move for leadership reorganization, Kakao Corp. is also looking into SM Entertainment's financials. It has launched an investigation as it is concerned that some issues could arise from the SM executives' questionable acquisitions and investments.
These issues may hurt Kakao, primarily if anomalies are found in the dealings. Bloomberg reported that the company hired a law firm to check on SM Entertainment's financial books, and the request was made by the firm's board's audit committee.
Photo by: Kakao Newsroom
