SM Entertainment artists issued shares for their own company

One of Korea’s largest entertainment companies, SM Entertainment, has recently announced that they will be issuing new shares to its artists. SM Entertainment will be issuing approximately $881,000 worth of new shares. SM Entertainment artists will effectively own a piece of their own company, as they will soon become major shareholders.
This plan was announced through DART Financial Supervisory Service on March 26th, as it will issue shares to Kangta, BoA, TVXQ, Super Junior, Girl’s Generation, SHINee, f(x), and Go Ara. SM Entertainment aims to issue 22,120 new shares with each individual share valued at 44,550 won (approximately $40 USD) each.

Kangta, BoA, and most members of Super Junior as well as Girl’s Generation will each be receiving 680 shares each, while SHINee and f(x) members will receive 340 shares each.

SM Entertainment released a statement stating that this capital increase represents the strengthening partnership between the company and its artists, and that they hope shareholders along with their artists will take part in the vision and growth of their company.

What do you think of this move?

Source: Star News