[Public Notice+] KeyEast: "Japanese SMC merges with SMEJ, the core of Japan's K-POP business... 'Second Leap Forward'"

[Asia Economy Reporter Hyunseok Yoo] KeyEast announced on the 1st that its subsidiary, Stream Media Corporation, Inc (hereinafter SMC), has decided to merge with SMEJ, Inc (hereinafter SMEJ). As a result, SMEJ will be merged into SMC and will cease to exist.

SMC operates satellite channels such as KNTV and DATV in Japan and is the number one operator for broadcasting Korean Wave programs via CS (Communications Satellite Broadcasting). It has managed the distribution of Korean Wave content such as K-Drama and K-Pop in Japan, as well as the management of Korean artists' activities in Japan and paid fan club businesses.

SMEJ, the merger target of SMC, is a subsidiary of SM Entertainment established in April through a physical division from SM Entertainment Japan. It has been engaged in various K-Pop related businesses including local management of SM artists in Japan, music business, K-Pop concerts, and album promotion events.

Through this merger, SMC plans to expand its business scope beyond Korean Wave broadcasting content channels to include K-Pop, promoting content distribution across the entire Korean Wave and completing a comprehensive media content platform.

Park Seong-hye, CEO of KeyEast, stated, “Japanese SMC, a subsidiary of KeyEast, is expected to become a core global content distribution hub for the SM Entertainment group through this merger, expanding its business scope beyond Asia to the world.” She added, “SMC, as a company that has led Korean Wave content distribution in Japan for a long time, will enhance platform operation efficiency by utilizing the rich variety of content SM Entertainment group possesses, including music, entertainment, and dramas.”

As a result, SMC’s corporate value is expected to increase significantly. The stock exchange ratio is 1 to 90 for SMC and SMEJ respectively. Considering SMC’s current market capitalization is around 30 billion KRW, the merged company’s market capitalization is expected to rise further.

The merger schedule for SMC and SMEJ will be finalized on August 1 after procedures including signing the merger agreement, approval at the shareholders’ meeting, creditor objections submission, and new stock issuance.

This content was produced with the assistance of AI translation services.