Kim Ho Joong’s agency, Think Entertainment, has recently undergone a significant transformation amidst ongoing legal issues. Contrary to previous expectations of the agency’s closure, Think Entertainment has opted for a rebranding strategy. According to a report by Munhwa Ilbo on June 20, the agency has changed its name to ‘Art M&C,’ with the registration process completed on June 11.
The rebranding move indicates that Think Entertainment is not shutting down but is instead pivoting away from entertainment management. The company’s registration documents, obtained by the media, show no signs of dissolution. Typically, closing a company involves specific steps, such as officially dissolving the company and appointing a liquidator. However, Think Entertainment’s records do not reflect these actions. Instead, the company has made several changes, including appointing Mr. Lee as the new representative, replacing the previously detained CEO Lee Kwang Deuk. Additionally, Mr. Yeon has been named the new internal director, effective June 11, the same day the company’s name was changed.
Broadcaster Jung Chan Woo, one of the major shareholders, continues to serve as the auditor. Jung Chan Woo was first appointed as an auditor in March 2020, completed his three-year term, and was reappointed in March 2023. Despite the turmoil, Think Entertainment has never officially declared closure. In a statement released on May 27, the agency announced the resignation of all executives and employees and the change of the CEO in connection with the ongoing incident. They also mentioned that they are reviewing the continuation of the management business and intend to terminate exclusive contracts with affiliated artists without any conditions, prioritizing their opinions.
Financially, the company recorded approximately 18.7 billion KRW (13.45 million USD) in sales and 3.4 billion KRW (2.45 million USD) in profit in 2023. However, they have over 12.5 billion KRW (9 million USD) in advance payments, which appears to be pre-received performance revenue from Kim Ho Joong. This financial situation complicates the possibility of closure. If the liabilities exceed assets, the company would need to follow the ‘corporate bankruptcy’ procedure rather than simply closing the corporation.
An industry insider speculated that closing the company in its current state would render all shares worthless, making it a difficult decision. The insider predicted that the company would likely restructure, excluding entertainers like Kim Ho Joong, after changing its name.
Kim Ho Joong himself is facing severe legal trouble, with potential prison time of up to 30 years for a DUI hit-and-run incident. This legal issue has undoubtedly influenced the agency’s decision to rebrand and restructure.
The rebranding of Think Entertainment to Art M&C marks a significant shift in the company’s strategy. While the agency navigates its legal and financial challenges, the focus appears to be on restructuring and possibly moving away from entertainment management. The future of the company and its affiliated artists remains uncertain, but the rebranding suggests a new direction amidst the ongoing turmoil.
