Kpop Review

SM Revealed to Use Media Play Against HYBE — But K-Netz' Reactions Are SHOCKING

In a recent report, SM Entertainment was accused of manipulating public opinion through media play against HYBE, but K-Netz’s reactions were not what you were expecting.

On July 23, the K-media platform Ten Asia published a write-up exposing SM Entertainment’s attempt to do media play against HYBE amid a management dispute in 2023.

According to the article, SM and employees of a viral marketing agency held a meeting through the Telegram chatroom to plan how to create a favorable public opinion during its discord with HYBE over management rights.

In the screenshots dated February 27, 2023, 2 SM employees, an HQ director, Mr. A, and 3 representatives from the viral marketing company were members of the said chatroom.

The 1.4 billion KRW contract ($1M) on the facade was publicized to advertise businesses related to their transition to “SM 3.0” business.

However, the viral marketing company suggested doing the so-called media mix and spreading content favoring SM and negative content about HYBE, rather than simple PR work (e.g., banner advertising).

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On March 1, 2023, SM and the viral marketing agency began to discuss manipulating public opinion directly. Among the revealed content that SM planned was an article raising concerns that “SM artists could disappear if HYBE acquires the label.”

(Photo : SM logo (News1))

“So far, the groups that HYBE has acquired and disappeared are GFriend, NU’EST, and PRISTIN. HYBE is doing public acquisition because they can do whatever they want after gaining control.

However, in the end, we thought that it would be better for the current SM Entertainment management to hold a board of directors meeting than for HYBE to hold a board of directors meeting, so we did not sell stocks to HYBE.”

(Photo : HYBE logo (News1))

When this knowledge reached Korean online communities, internet users were baffled but rather than hating on SM, they agreed that it was wise not to be acquired by HYBE. Netters described SM as “not the best” but giving it to the multi-corporation is just “evil” especially to SM artists.

  • “But it is true, though.”
  • “I don’t know which artist is leaving and such, but in a multi-label system, singers can suffer, so the management, employees, and fans are all against it. Even HYBE fans are against it. It’s true that there was public opinion like this.”
  • “The content is true though. You’d think that they wanted to create negative virality, but you seem to not know what negative virality is. Anyways, isn’t it clear that they just didn’t want to be acquired by HYBE?”

On the flip side, HYBE stans complained that the content that the “the groups HYBE acquired and disappeared” is false.

PRISTIN (Photo : PRISTIN Instagram)

(Photo : GFriend (News1))

(Photo : Instagram: @nuest_official)

PRISTIN officially announced its disbandment in May 2019, and Pledis Entertainment, its agency, was acquired by Big Hit Entertainment (hereinafter HYBE) in May 2020.

SM Entertainment also explained their side, saying:

“This was done for the purpose of conveying the company’s position to shareholders and stakeholders as part of legitimate communication to defend management rights.”

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