SM Entertainment to sell Key East, founded by Bae Yeonjun, to ”stay true to its core business”

SM Entertainment is selling Key East, a management company specialising in actors such as Kim So-hyun and Han Son-hyeon. It is believed that this is an intention to liquidate non-core assets and become faithful to its ‘core business’.

On the 17th, SM Entertainment stated in a public announcement that "We are proceeding with the sale procedure with Anjin Accounting Corporation, the lead manager of the sale, in relation to the sale of the non-core assets of the subsidiary company. For this purpose, we have selected Cheongdam Investment and KNT Investment as the preferred negotiation parties."

They continued, "SM Studios, a subsidiary (and the largest shareholder of Key East), will be negotiating the main contract terms and conditions with the preferential negotiating parties."

The sale interest covers 33.71%, with SM Entertainment subsidiaries SMSM Studios and SM Entertainment Japan holding 28.38% and 5.33% respectively.

Key East is an actor-specialised management company established by actor Bae Yong Joon and currently includes actors Kang Hannah, Kim So Hyun, Bae Jung Nam, Choi Jung An and Han Sonah.