On January 20, SM Entertainment announced its plans to instate a revised management structure in 2023.
Previously, SM Entertainment worked with its shareholder Align Partners Capital Management to introduce revision campaigns to the agency's internal management structure. According to the agency on this day, SM Entertainment and Align Partners came to an agreement on 12 clauses through which the entertainment company's management structure will be revised, with many of the changes taking effect after the company's general board meeting, convening in March of 2023.
Notably, president Lee Chang Hwan of Align Partners will be appointed a board director at this general board meeting in March, with various other internal changes gradually shifting the structure of SM Entertainment to a global governance format. Important to this change will be the founding of a committee for internal exchange, which will closely monitor and investigate past and future internal financial exchanges.
Additionally, beginning in 2023, SM Entertainment will adopt a multi-producing system, enlisting numerous talented producers in the mission to inherit, sustain, and evolve the musical identity of SM Entertainment and its artists. It seems that through this multi-producing system, SM Entertainment will no longer rely completely on head producer Lee Soo Man for the creative direction of all music projects.
Finally, on behalf of co-presidents Lee Sung Soo and Tak Young Joon, SM Entertainment assured that all conflict with its external shareholders have now been resolved through its recent agreement with Align Partners Capital Management.