Legal & Management

This week, SM Entertainment released its “30th Anniversary Brand Film” to celebrate its upcoming three-decade milestone since the Korean label’s establishment. The film showcases SM’s evolution into a multinational, publicly traded company through trend-setting, generation-defining acts and songs as captured through the film’s showcase of early artists H.O.T., S.E.S. and BoA, to its latest stars. With such a powerful precedence in the industry, SM and its internal team’s handling of the recent controversy involving Seunghan, a former member of the label’s newest K-pop group RIIZE, has the potential to set a new industry standard — but one that could create a potentially dangerous precedent for its stars.

Debuting in September 2023, RIIZE’s multinational lineup representing Korea, Japan and the U.S., centered on an authentic, “unpolished” image through makeup-free selfies and in-studio content on social media — a refreshing shift from SM’s elaborate, concept-heavy aesthetics. The full, seven-member lineup of Shotaro, Sungchan, Eunseok, Seunghan, Wonbin, Sohee and Anton made its first live appearance at the 2023 KCON Los Angeles festival. Ahead of the first SM artist launch under new corporate owners Kakao Entertainment, sources confirmed to Billboard that the companies specifically met with various digital, streaming and media partners in the U.S. to secure early interest, underscoring intent to present the relatable, down-to-earth guys globally.

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On Sept. 4, 2023, RIIZE released its official first single, “Get a Guitar,” in a partnership with RCA Records, marking a rare moment for an entirely new K-pop group to sign with a U.S. label upon debut. Media messaging pointed to a new, globally focused strategy as RCA Records COO John Fleckenstein commented “RIIZE are set to break new boundaries in global pop with an entirely fresh perspective,” and CEO of SM and Kakao Entertainment America/CBO of SM Entertainment Joseph Chang echoed “RIIZE is ushering in an exciting new era of K-pop.”

RIIZE’s English remake of “Get a Guitar” was released in November, followed by funk duo Chromeo remixing both versions in December. By all accounts, RIIZE was set up to become K-pop’s next global player from the first song with an RCA corporate new post touting “their down-to-earth personalities” and an SM Entertainment press release stating that RIIZE “encapsulate the idea of a team that grows as one while achieving their dreams”.

While RIIZE and teams worked to resonate globally, they simultaneously grappled with an unfolding controversy involving Seunghan, with its aftermath ultimately challenging the group’s image.

In August, private photos showing Seunghan kissing a woman leaked which stirred some fan resentment over “idol-appropriate” behavior. SM issued statements apologizing and threatened legal action against those circulating the images. Another leak came surfaced in October, this time a video of Seunghan smoking publicly, leading SM to announce an indefinite suspension, a move marking a hardline approach to RIIZE’s image.

What followed was 10 months of silence on Seunghan’s status in the group as RIIZE looked to spread its name internationally. The band’s RIIZING DAY Fan-Con Tour hit Asia and North America through the spring and summer, with recorded incidents in Mexico City and Los Angeles showing crowds chanting Seunghan’s name and that “RIIZE is seven.”

Earlier this month, the SM Entertainment management team in charge of RIIZE, known as Wizard Production, announced on Oct. 10, that Seunghan would return to “gradually participate in some of the group’s scheduled activities for November and greet the fans once again.” That decision was reversed about 48 hours later when another announcement dropped, with directors Kim Hyeong Guk and Lee Sang Min stating that “we realized that our decision had actually hurt fans more and caused them greater confusion instead.” Indeed, in the hours following Seunghan’s initial return announcement, some RIIZE fans protested by surrounding SM Entertainment’s local headquarters in Seoul with funeral wreaths — an increasingly common but concerning move from emotional K-pop listeners aiming to display that its decisions leave them dead to such fans. Phrases like “RIIZE Is 6” and “Seunghan Out” were decorated on the expensive wreaths (which cost between $70-$170) that other local fans worked together to destroy and remove from premises.

Member Wonbin had even posted a letter to fans on RIIZE’s Weverse account in what seemed like an effort to console potentially upset fans and reiterate it was a decision made by the entire group. When Seunghan’s official departure was announced, that letter was deleted without explanation.

But RIIZE’s issue is more complicated than playing by local rules.

Korea’s pop-culture scene, and K-pop in particular, tends to take a more conservative approach with an emphasis on idol-like behavior crucial for securing lucrative brand deals and media exposure within Korea. Like any label, SM has a track record of addressing scandals — notably standing by NCT‘s Taeyong through an online scamming controversy ahead of his official debut and allowing him to directly address the situation — Seunghan’s situation appears to draw a harsher line, suggesting, now, that even pre-debut leaks of personal moments could be grounds for suspension.

Whether or not this comes from SM’s new owners in Kakao, the confusion and subsequent fan outrage — leading to over 307,000 signatures on a Change.org petition — arguably comes from the specific shaping and marketing that came with creating RIIZE.

Over 300,000 people have now signed a petition demanding the reinstatement of K-pop star Seunghan back into the boy band RIIZE. The star was placed on an indefinite hiatus in November 2023 after leaked photos of him kissing a woman in bed sparked outrage among fans who expect… pic.twitter.com/H3iwsD7bBb— Change.org (@Change) October 24, 2024

Had SM followed its previous playbooks from seniors like Girls’ Generation, NCT 127 and aespa, RIIZE would have likely made a successful debut in Korea, appearing across the country’s different TV shows and media to promote an initial single, and eventually expanding its reach through overseas promotions and a deal with a U.S. label or distribution. In fact, the only SM project to launch simultaneously with a stateside label partner was its seven-member supergroup SuperM, which sent its debut EP to No. 1 on the Billboard 200 as a full-fledged Capitol Records collaboration, but failed to top the charts or land a hit single in Korea.

Instead, RIIZE’s worldview was primed to extend beyond South Korea from before “Guitar,” with the management choices behind it rightfully expected to keep such expectations in mind.

While Seunghan’s fate seems sealed over the permanent nature of RIIZE’s latest statement, the challenge now resides on the remaining six members to navigate similar controversies. If a member is caught smoking will he be put on hiatus? Even with nearly one-third of South Korean men identifying as smokers? And will RIIZE members never be allowed to date either without withdrawing from the team? Didn’t Anton being the son of a beloved Korean singer and actress help the group gain local attention? With an industry standard seven years on their contracts — with many acts, particularly those under SM, lasting beyond — one has to wonder what type of protections and security will be needed for RIIZE to ensure there are no unsavory leaks or slips as the group moves into their second year together. Nearly half of South Korean adolescents are faced with severe stress as are over a quarter of adults, a figure expected to be quite higher given the known pressures of the K-pop industry. Is RIIZE truly going to be able to live as their authentic selves?

Earlier this week, the six members of RIIZE were announced to join November’s Rolling Loud Thailand, the local version of the hip-hop festival that had an official cannabis partner last year. (Cannabis that has less than 0.2 percent THC is legal in Thailand; non-medical cannabis use is illegal in South Korea and was only recently approved for medical import in 2019) The image of a conservatively managed boy band performing at the fest made some call the decision “hypocritical” and “ironic.”

Yet, one can’t help but wonder if RIIZE and its team had addressed Seunghan’s situation with the authenticity they promoted from the start, things might have unraveled less controversially and confusingly.

As noted in a dinner conversation for a Billboard digital cover story, youngest member Anton shared that the group never considered RIIZE as having a “concept” but that “we’re just trying to show our authentic selves.” In fact, RIIZE, as well as Seunghan, have been brave in sharing their authentic selves with the public — whether through their work as artists or unapproved leaks from their pre-debut private lives. Marketing an image is an important part of an artist and making it believable is something only the best executives can pull off. Only one party has aligned with RIIZE’s larger messaging around authenticity and growth. Consequently, that side is also the one pulling the strings on who stays and who departs the group, leaving the stakes higher — and more dangerous — as the group and the K-pop industry moves forward and increasingly more international.