SM is getting some lovely press thanks to their wonderful contracts being put in the spotlight again. Some more. Because they probably still aren’t legal. (And keep in mind that Exo was getting 3-5% of profits. Split 12 ways. Wow.)
If you think the powers that be of course aren’t going to care, think again. The JYJ law, the potential banning of bulk-album sales–yeah. When people in government are passing laws that seem rather specifically aimed at your company’s practices, that’s a bad sign.
SM sells so well!
But not really….
People throw around terms like “too big to fail” without realizing that regulators do indeed have tremendous power, even over very large companies. In the United States, corporations have undergone massive restructuring specifically to avoid falling into that “too big to fail” category.
And SM is really, really not too big to fail. The company has a market capitalization of 838 billion won, which is $838 million. That qualifies it as a small-cap stock in the United States and is a tiny fraction of the size of an actual chaebol like Samsung.
If the company keeps racking up bad press, while its groups continue to 1. sue them, or 2. appeal only to a relatively small group of seriously crazy people, yeah–I’m betting that many more politicians are going to do that math and decide that giving SM a kick in the teeth is well worth their time….