'SM Enter 표대결' 나선 Eollain 임직원도, SM 지분 보유

[Asia Economy Reporter Ji Yeon-jin] It has been confirmed that Align Partners Asset Management, which is engaged in a vote battle over the appointment of an auditor at SM Entertainment's regular shareholders' meeting on the 31st of this month, also holds SM shares through its affiliates and employees. It is unusual in the securities industry for employees and affiliates to purchase stocks included in funds directly managed by an asset management company, and controversy is expected as this shareholder proposal could lead to private gains.

According to the "Proxy Solicitation Reference Document" submitted by Align Partners to the Financial Supervisory Service's electronic disclosure system on the 25th, CHL Investment, an affiliate of Align Partners, holds 10,000 shares (0.04%) of SM Entertainment. Director Seol Do-bin and Compliance Officer Lee Hye-yeon, who are employed at Align, also hold 7,043 shares (0.03%) and 2,000 shares (0.01%) of SM Entertainment, respectively, and all have delegated their shares to Align Partners' shareholder proposal.

In the asset management industry, all stock trading by employees must be reported in advance according to internal control regulations, with detailed plans including investment periods and sale timings, effectively preventing private investments. A representative from an asset management company said, "Employees investing in stocks included in managed funds can cause unnecessary misunderstandings, and compliance is strict, so it is generally avoided," adding, "Employee and affiliate investments are very unusual."

Align Partners, which officially launched as a hedge fund management company last September, began actively purchasing SM Entertainment shares from September. During this period, SM Entertainment's stock price rose by more than 150%. A securities industry official said, "If all Align employees and affiliates purchased SM shares before the company was licensed, there may be no legal issues, but since Align was legally established as an asset management company from March and began purchasing SM Entertainment shares in earnest after licensing, industry criticism may exist."

CHL Investment, an affiliate, had Kwak Jun-ho, recommended by Align Partners as an auditor candidate, serving as CEO in 2021, and currently, Chae Pan-soon, mother of Align CEO Lee Chang-hwan, is registered as an inside director. Since affiliates can exercise control combined with the same person or special related parties, CHL Investment being defined as an affiliate raises the possibility that this company is a personal company of CEO Lee Chang-hwan. An industry insider expressed concern, saying, "If Kwak Jun-ho, who also served as CEO of CHL Investment, is registered as an auditor of SM Entertainment, there is a possibility of information asymmetry regarding internal company information between Align, its employees, CHL Investment, institutional investors, and other shareholders."

Meanwhile, SM Entertainment recently announced through a disclosure that it has decided on a cash dividend of 200 KRW per share.

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