SM Entertainment, a trailblazer in the K-pop industry, is currently facing significant challenges that threaten its historical legacy
Despite being known for pioneering K-pop, SM’s glory seems to be fading, marked by the departure of Executive producer Lee Soo-man earlier this year and the introduction of the 3.0 project.
The “Kakao Risk” continues to haunt SM, impacting the stock prices even with the comeback of SM’s ace group aespa. The hidden card, rookie boy group RIIZE, faces issues not only related to their music but also in terms of risk management. Industry voices are expressing concern, stating that SM’s 30-year reign is now in jeopardy.
As of Nov 23rd, SM’s stock prices are recorded at 93,900 won, reflecting a downward trend since October, disappointing compared to the consistent maintenance in the 100,000 won range throughout this year. Two primary issues plague SM from the industry’s perspective: first, the “SM price manipulation case” involving major shareholder Kakao, and second, the decline in album sales, evident in the underwhelming performance of aespa’s recent mini-album released on Nov 10th.
The “SM 3.0” initiative, aimed at revitalizing the company post-Lee Soo-man, faces challenges with its first group RIIZE, particularly due to the controversy surrounding member Seunghan’s private life. Despite the group’s pre-debut popularity and international success, Seunghan’s personal issues have damaged RIIZE’s image. SM has indefinitely suspended Seunghan’s activities, but the group’s image has been scratched in many ways.
The overall risk for SM lies in the combination of the Kakao controversy and the scandal affecting RIIZE, representing a critical period for the company. The industry is closely watching to see if SM can navigate these risks and open a new chapter for the next generation of K-pop.
Source: daum
