On February 10, HYBE Labels confirmed that it has purchased 14.8% of shares in SM Entertainment from founder Lee Soo Man, formally becoming the agency's largest shareholder.

Lee Soo Man and HYBE Labels signed a transfer of shares contract on this day, resulting in HYBE purchasing 14.8% of SM Entertainment's shares at 422.8 billion KRW (~ $334.4 million USD). 

In a joint press statement, Lee Soo Man and Bang Si Hyuk revealed, "SM and HYBE have decided to join hands as to push both agencies to the status of game changers within the global popular music industry. Together, we will maximize the global competitiveness of K-Pop and strive toward a future-oriented, lifestyle platform business." 

In addition, HYBE Labels emphasized that the company strongly aligned with Lee Soo Man's vision in innovative ideas like the metaverse, sustainability, as well as SM Entertainment's move toward a multi-label structure. 

HYBE Labels also added on, "In such a turbulent environment such as the  global music market, SM Entertainment was the key agent which revolutionized Korea's music industry and allowed for its sustainable growth. The agency paved the way and established a firm foundation for K-Pop to spread across the globe, and planted the idea that K-Pop was a new music genre to consumers around the world." 

Lee Soo Man and Bang Si Hyuk, who both graduated from Seoul National University, plan to continue an active partnership in the management and growth of SM Entertainment. 

[UPDATE] Additional details of Lee Soo Man and HYBE's sales and purchase agreement:

1. HYBE Labels will cooperate fully in SM Entertainment's structural management revisions.

2. Lee Soo Man, who terminated his producer contract with SM Entertainment last year on the premise that he would receive management royalties for the next 3 years, will remove this clause of the contract as a demonstration of his willingness to cooperate in the restructuring of SM Entertainment's internal affairs.

3. Various SM Entertainment affiliates intend on transferring their shares to HYBE Labels as to also show their cooperation in the company's re-organization. In response, HYBE Labels will make substantial investments toward increasing the potential and efficiency of SM Entertainment's internal management. 

4. HYBE Labels will proceed to publicly purchase independent SM Entertainment shares owned by shareholders at the same price that Lee Soo Man's shares were purchased, offering shareholders the highest available price for the sales of their shares.