Kakao Corp is now the second largest shareholder of SM Entertainment.

On 7 February, the South Korean tech company revealed that they signed a 217.2 billion won (approx. $173 million) to acquire 9.05% of the pioneering K-pop agency.

According to Kakao, the two companies hope to work together in "competing in the heavily contested global music and content market through this investment." One of their future joint management projects include global K-pop conditions, Kakao added.

SM Entertainment was founded by Lee Soo Man in 1995, and is home to the likes of Girls' Generation, Super Junior, EXO, NCT, Red Velvet, aespa, and more.