Kakao’s headquarters in Seongnam, Gyeonggi Province / Korea Times file
SM’s management faces possibility of being sacked depending on audit
By Anna J. Park
Kakao is conducting an intense audit of SM Entertainment’s key management, with market insiders hinting at the possibility of a management reshuffle at the K-pop entertainment agency, depending on the outcome of the audit.
A Kakao official told The Korea Times on Monday that the big-tech firm’s internal audit committee, consisting of company board members, is looking closely into SM management to see whether their external investment decisions were made properly.
“Kakao is currently undergoing a financial statement audit on SM Entertainment through an external law firm, as requested by the audit committee. This is in accordance with Article 21 of the Act on External Audit of Stock Companies, under which the audit committee finds it necessary to review the consolidated financial statements of Kakao and its subsidiaries,” the Kakao official said.
“The investigation is concerning the appropriateness of investment decisions made by SM management without holding prior consultations with Kakao, after Kakao became the largest shareholder of the…
