SME announced that it will sell its subsidiary KeyEast.
On the 17th, SME stated that "its subsidiary SM Studios is in the process of selling non-core assets in coordination with the managing company Anjin Accounting Corporation." This was the final response to the Korea Exchange KOSDAQ Market Division's request for a clarification disclosure regarding the sale of the subsidiary's equity.
SME further explained, "SM Studios has selected Cheongdam Investment and KNT Investment as priority negotiators regarding the sale of KeyEast's equity on Feb. 14," and added, "SM Studios plans to negotiate the main contract terms with the priority negotiators."
SM Studios is a content subsidiary of SME that was established in 2021. SME holds 100% equity of SM Studios, which in turn has subsidiaries including SM C&C and KeyEast. Under SM Studios, there are also DearU, Mystic Story, and SM Life Design Group. SME has Kakao as its largest shareholder.
Rumors of the sale of KeyEast began circulating in early 2024. SM's CEO Jang Cheol-hyeok mentioned in February 2024 while explaining the SM 3.0 strategy that the company aims to raise 280 billion won by selling non-core assets. KeyEast operates management and production of video content, such as dramas. Actors Kim Seo-hyung and Bae Jung-nam are affiliated with the company. It has produced dramas such as "Ask the Stars," "Health Teacher Ahn Eun-young," and "Dream High."