Something is happening at leading South Korean management/production company SM Entertainment – but just what isn’t exactly clear.

Unconfirmed media reports say that SM CEO Lee Soo Man will resign from SM, but will remain the company’s biggest shareholder, with a stake of just over 28%.

Lee founded Seoul-based SM in 1995 and built it up into South Korea’s No. 1 music agency by scoring successes with acts such as BoA, TVXQ, Shinee, Super Junior and Girls’ Generation.

According to website allkpop, “SM is stating that Lee Soo Man is resigning so that SM can focus on investments and business development overseas.” SM has so far not replied to MAMN’s request for comment.

Meanwhile, Tokyo-based label Avex has confirmed that it has sold all its shares in SM, realizing a profit of 783 million yen ($8.7 million). Avex says it held 16.9% of SM’s total equity.

Despite the sale, “We will be continuing close relations with SM,” says an Avex spokesman. “Avex Group is currently trying to improve our balance sheet for further progress, and this is one part of it.”

Links between Avex and Japan date back to 1991, when the two companies set up Tokyo-based joint venture SM Entertainment Japan and signed a cross-licensing agreement. Through the tie-up with Avex, SM acts BoA and TVXQ (known as Tohoshinki in Japanese) have achieved huge success in Japan as part of the hanryu Korean boom.