SM contacts the Fair Trade Commission regarding HYBE’s purchase of Lee Soo Mans Soompi stock
SM will contact the Fair Trade Commission.
Since HYBE attempted to buy Lee Soo Man’s stock, SM Entertainment has uncovered a hostile takeover by HYBE.
The Fair Trade Commission could play a serious role in this matter, as the organization could directly validate the transaction between HYBE and Lee Soo Man or veto the sale of the shares.
On February 21, SM Entertainment then announced that it would approach the Commission directly to present its position on the situation and seek a Commission decision. In fact, HYBE’s share buyback did not follow Commission approval, which is not usual and could expose SM Entertainment to risks.
Should the Commission veto the deal due to a possible industry monopoly, an inflow of SM Entertainment shares would be made available in the market.