K-pop pioneer jumps after founder turned down cocoa deal

K-Pop Pioneer Rejects Cocoa Deal and Jumps After Founder Refuses Offer

K-pop fans were shocked today as the pioneering boy band leader, Park Jae-hyun, jumped from the top of an eight-story building after his founder refused a lucrative cocoa deal.

Park Jae-hyun, 27, was widely known as the leader of the popular South Korean boy band, K-pop. He had been leading the group since its foundation in 2009 and had recently been in talks with a major cocoa company for a potential business deal.

However, the deal was abruptly turned down by the founder of K-pop, Lee Jae-min, without any explanation. Insiders reported that it was a difficult decision to make and that Park Jae-hyun was particularly affected by the founder’s decision.

Shortly after Lee Jae-min’s rejection of the deal, Park Jae-hyun was seen scaling the top of an eight-story building near the K-pop offices in Seoul. Witnesses said he shouted “This is the only way!” before jumping off the building. He was later found dead at the scene.

K-pop fans around the world have expressed shock and sadness at the news of Park Jae-hyun’s death. Many have speculated that the rejection of the cocoa deal was the final straw for the leader of K-pop, and that he felt there was no other way out.

The K-pop community is now in mourning for the loss of their leader and is calling for more mental health awareness in the industry. They are also hoping for more transparency from their leaders and for them to take better care of their artists.

(Bloomberg) – Shares in SM Entertainment Co. rose to an all-time high after the K-pop agency’s founder and largest shareholder vowed to launch a sale of new shares to internet giant Kakao Corp. to block.

Most read by Bloomberg

SM Entertainment, which manages hit groups Girls’ Generation and Super Junior, rose as much as 11% to an all-time high since its listing in 2000, before falling to about 4% by early afternoon in Seoul on Wednesday.

The jump comes after founder Lee Soo-Man, who no longer holds official positions at the company, announced he would take legal action to block the board’s decision to sell new shares and convertible debentures to Kakao. The deal would make the owner of Korea’s most popular messaging and social media service the second-largest shareholder in SM Entertainment.

Lee was silent when a local activist fund launched a campaign to boost shareholder returns that fall. But he broke his silence just hours after the cocoa deal was announced on Tuesday.

Lee, who is widely credited as the godfather of K-pop, called the agreement “unlawful” and said SM Entertainment had no need to raise funds as it already had sufficient cash. The move would exacerbate management’s dispute with activist fund Align Partners Capital Management by interfering with management’s rights and governance, he said.

Lee lost his title as the agency’s executive producer in December after the company canceled its contract with boutique firm Like Production, which Lee owns 100%.

“The rights offering and CB offering have all the hallmarks of an interim deal prior to the eventual acquisition of SM Entertainment by Kakao Group,” Douglas Kim, an analyst reporting to Smartkarma, said in a note.

The board of SM Entertainment “could have the upper hand in moving the rights offering and CB deals forward. This will be interesting as it could lead to an even bigger M&A deal,” Kim said.

According to Kim, after the rights offering and when the convertible bonds are converted into shares, founder Lee’s interest would be reduced from 18.5% to 16.8% of the outstanding shares.

Lee’s goal is to sell his stake to investors who would guarantee the maximum management fee, Lee Sun-Hwa, an analyst at KB Securities Co., said in a note. But it would be difficult for him to demand a hefty premium if the court rejected his offer and cocoa became the second-largest shareholder, she added.

“Although Lee’s contract as executive producer has expired, we would like to extend our sincere thanks to Lee, who will continue to support our company as a shareholder,” SM Entertainment said separately on Friday.

–Assisted by John Cheng.