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Three Reasons Why Kang Ho Dong Signed with SM

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2012.08.18 05:00 CJ E&M enewsWorld Choi, EunHwa Translation Credit : Erika Kim

Kang Ho Dong, who had announced his tentative retirement due to tax evasion issues, will soon be making a return. The confirmation comes 359 days after he first voiced his will to retire in September 2011.

Through press releases on August 17, Kang Ho Dong revealed he had signed an exclusive contract with SM C&C. SM C&C is an affiliate of SM Entertainment, which holds some of Korea’s most prominent idols such as TVXQ (DBSK), Girls’ Generation (SNSD) and BoA.

Three Reasons Why Kang Ho Dong Signed with SM

Why, then, did Kang Ho Dong choose to sign with a large entertainment company instead of setting up his own agency like he did before?

There seem to be three reasons he decided to do so.

The synergy between SM Entertainment and Kang Ho Dong

Kang Ho Dong and SM Entertainment will be able to become even more powerful in TV show production. SM Entertainment is currently expanding its areas not only in music, but also in many video content areas such as dramas or films.

As a part of its efforts to launch its video content businesses, SM took over the travel company BT&I in April.

The move implied that the company would take a full-scale approach in launching its production works to a global audience. SBS’ To the Beautiful You is the company’s first piece since its merge with BT&I.

By signing with Kang Ho Dong, SM Entertainment will now be able to offer models not only in drama and film, but also TV show production. The move shows the company’s plans to expand to MC management and become a true multi-entertainment group.

An official from SM Entertainment explained to enews about the direction the company would be taking.

The official said, “After signing Kang Ho Dong and Shin Dong Yeop, the best MCs in Korea, we’ve set in place a foundation on which we can build a variety of programs. We’ll be able to expand to the MC areas and become a comprehensive group even outside of the management of singers and actors.”

SM Entertainment’s know-hows in press handling

Some celebrities stay quiet when important incidents occur to them. Such methods taken by the agencies can aggravate the situation and make it even worse.

SM Entertainment, on the other hand, knows how to handle the media. It is especially called one of the best in media management out of all Korean entertainment companies.

Kang Ho Dong probably wanted to use SM Entertainment’s media handling system.

In September 2011, when he was brought under fire for being a suspect in tax evasion, Kang Ho Dong’s agency kept quiet.

What those people who called themselves sources or officials said didn’t match up, and Kang Ho Dong in the end had to open a press conference to talk for himself.

Now, however, all news about Kang Ho Dong will be issued through SM Entertainment.

A rep from SM Entertainment’s PR group said about Kang Ho Dong’s comeback, “We’re talking over when he’ll be making his comeback. He’ll have to consider how he’ll make his new start carefully.”

The rep also talked about some reports that said Leeteuk had played a great part in bringing Kang Ho Dong into the agency, saying, “It’s not true that Leeteuk helped him.”

Three Reasons Why Kang Ho Dong Signed with SM

Kang Ho Dong and SM’s brand value

SM C&C, which Kang Ho Dong is signed with, is an affiliate of SM.

SM Entertainment is fairly influential in the stock market due to the growth in its content ability and the Korean wave.

Because of this, SM C&C is also being viewed as an attractive investment among investors.

This can be seen through the spike in stocks for SM C&C that occurred on the morning of August 17.

As Kang Ho Dong and Shin Dong Yeop signed exclusive contracts with SM C&C, the company saw an 11.9 percent growth in stock prices, being exchanged at 3,610 won. Many state that the company drew investments when it issued new stocks for Kang Ho Dong and Shin Dong Yeop.

The stocks for SM C&C are expected to rise even higher in the market, as Kang Ho Dong has gotten on the same boat as SM, which has a system that can help him become the best entertainer not only in Korea, but in Asia.

Photo credit: Hea Jung Min

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Kang Ho Dong 20120818 SM Entertainment 20120818
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