Current situation of SM employees after HYBE purchased SM shares and became the largest shareholder 

“This hurts my pride,” The complaints of SM employees are spreading online.

On February 10th, when the news that HYBE had acquired Lee Soo Man’s stake in SM, thereby becoming SM’s largest shareholder, was announced, posts written by SM employees were shared on Blind, an anonymous online community for Korean office workers.

Employee A  said, “What does this feel like? Thanks to more (offline) concerts after the pandemic, the company’s performance improved. We have this mindset, ‘After all, it’s SM, so let’s work hard and be first place again!’. But it’s been too much work every day. I work with small expectations every time I do a project. Now, I feel like I’ve been deprived of that too.” 

A added, “No matter how hard we work in the future to make SM artists No. 1, SM is just gonna be a label under HYBE with a good track record. It feels like all traditions and history have been denied. Am I the only one who feels weird?”

This was posted on a dedicated community space for SM employees to see. Therefore, other employees left comments: 

• “I agree. I wanted to do well”
• “I was really proud of SM, but it felt like it collapsed in an instant”
• “I feel like SM lost the power to endure even though it was so difficult. We had pride. But even the last remaining pride was blown away by Lee Soo Man”
• “Lee Soo Man, this is not right. It seems that you do not care about why we are all here”
• “I am really upset. The current situation hurts my pride. No matter how hard I work, SM has changed. It’s futile to not be able to voice anything”
• “I also dedicated my youth to SM. I really want things to go well… This is upsetting”

Another SM employee, B, said, “Lee Soo Man, are you comfortable right now? Are you happy after trading the blood and tears of SM executives, employees, and artists who shared SM’s history for 422.8 billion won? Have SM and its employees been just that much to you?,” expressing their anger. 

Previously, HYBE acquired a 14.8% stake owned by Lee Soo Man, the major shareholder of SM, for 422.8 billion won. HYBE and former executive producer Lee Soo Man issued a joint statement saying, “We have decided to maximize K-pop’s global competitiveness and achieve our common vision as a lifestyle platform company for future business.”

SM co-CEOs Lee Sung Soo and Tak Young Joon, and 25 high-ranking officials expressed their opposition to Lee Soo Man and HYBE’s decision. In an  official statement, they expressed their opposition to HYBE’s hostile M&A along with all employees and artists.

According to the statement, SM recently entered into a strategic partnership with Kakao and tried to implement the SM 3.0 strategy to secure a new future growth engine for SM. SM 3.0 plans to end Lee Soo Man’s “one-man production system” and establish a multi-production system.

However, with the surprise appearance of HYBE, attention is focused on whether the SM 3.0 strategy previously announced by SM will be completely revised.

Source: Wikitree.