Corporate intrigue at the heart of K-pop

Fans of South Korea’s wildly successful pop industry are used to the intrigue surrounding new groups, band members’ romances and their misbehaviour. Now a new source of K-pop drama has emerged from an unexpected quarter. On February 10th HYBE, an entertainment house which represents the genre’s biggest name, BTS, agreed to buy a 14.8% stake in SM Entertainment, a rival, from its founder and former chief producer, Lee Soo-man. Mr Lee, who is no longer involved in his firm’s day-to-day business, would be left with roughly 4%, making HYBE its largest shareholder. In pursuit of an even closer tie-up, HYBE simultaneously launched a tender offer to buy another 25% at a similar premium to the shares’ market price that it is paying Mr Lee. SM Entertainment says it will resist any attempt at a hostile takeover. The stage is set for a corporate showdown worthy of any pop feud.