K-pop stocks soar after agency behind BTS announced it would become its rival’s top shareholder

The K-pop bureau down BTS is acceptable to go the largest shareholder of SM Entertainment — the bequest institution known to person kickstarted the question of popularity astir Korean popular culture.

Hybe Co. agreed to get a 14.8% involvement held by SM Entertainment's laminitis Lee Soo-man by March, according to a filing aboriginal Friday greeting up of Seoul's marketplace unfastened — and pledged successful a abstracted announcement to bargain different 25% stake.

That would marque Hybe a apical shareholder successful SM Entertainment. Lee is presently SM Entertainment's apical capitalist with a 18.45% stake, according to Refinitiv data, followed by South Korea's National Pension Service, KB Asset absorption and Norway's Norges Bank Investment Management, its latest filings showed.

The woody is targeted astatine "raising its competitiveness successful the K-pop manufacture and producing a synergy effect," Hybe said successful its filing.

Shares of SM Entertainment soared connected Friday, rising much than 16% astatine the unfastened successful Seoul. Hybe roseate 6% and JYP Entertainment roseate 2.5%, portion YG Entertainment gained 3.8%.

The bureau is besides known for rising miss radical NewJeans — which debuted successful the Billboard's Hot 100 with its deed "Ditto" past period wrong six months of its debut.

SM Entertainment is besides the bureau down apical bands Super Junior, Girls' Generation and Red Velvet, a radical that performed successful beforehand of North Korean person Kim Jong Un successful 2018 astatine the astir caller tallness of inter-Korean diplomacy, alongside past president Moon Jae-in.

Hybe purchased 3.5 cardinal shares of SM Entertainment astatine 422.8 cardinal won ($334.2 million) — oregon 120,000 won per share, with a premium of much than 20% compared with SM Entertainment's closing terms of 98,500 won arsenic of Thursday's marketplace close.