According to news1 on December 7, Genie Music successfully renewed distribution agreements with YG Entertainment and JYP Entertainment, however, they're facing difficulties in maintaining their contract with SM.
A rep from Genie Music stated, "Head of Genie Music, Kim Hoon Bae, expressed his willingness to increase commission fees for contract renewal with YG and JYP. However, SM expressed the wish to leave Genie Music. Therefore, their renewal seems unlikely."
It's stated that SM Entertainment's partnership with SK Telecom established in July most likely played the greatest influence in the agency's decision to end the distribution agreement with Genie Music.
SEE ALSO: Actress Kim Min Seo is getting married in May!
Genie Music is expected to have a tremendous financial loss, about 10,000,000,000 KRW (9 million USD), without SM Entertainment as the agency provides about 40% of Genie Music's revenue.
An associate in the music business commented, "Genie Music is in danger as YG and JYP's contracts are also most likely just temporary."
