SM Entertainment to Sell KeyEast Agency

SM Entertainment (SM) has announced its decision to sell KeyEast, the talent agency representing actors such as Kim Seo-hyung and Han Sun-hwa. On February 17, SM disclosed that it has selected Cheongdam Investment and KNT Investment as preferred negotiation partners for the sale, with Anjin Accounting Corporation acting as the broker.

SM stated that its subsidiary, SM Studios, which is the largest shareholder of KeyEast, will engage in negotiations regarding key contract terms with the selected partners. KeyEast's roster includes notable actors like Kang Han-na, Kim Seo-hyung, Bae Jong-nam, Chae Jung-an, and Han Sun-hwa.

According to the third-quarter report from last year, SM Studios holds a 28.38% stake in KeyEast, while SM Entertainment Japan owns an additional 5.33%. It is expected that SM will sell its total 33.71% stake in KeyEast, as part of a strategy to streamline its operations and focus on its core business of music production and artist management, especially as the company celebrates its 30th anniversary this year.

SM co-CEO Jang Cheol-hyuk emphasized during the fourth-quarter earnings announcement on February 10 that the company will remain committed to its foundational goals and continue to work diligently.

Previously, YG Entertainment also announced its intention to cease its actor management business to concentrate solely on music, stating on January 17 that it would restructure its operations accordingly. Actors under YG, including Kim Hee-ae, Cha Seung-won, Yoo In-na, Suhyun, Lee Sung-kyung, Jang Ki-yong, and Son Na-eun, are expected to leave the agency as their contracts expire.