2018–present: Acquisition by SM Entertainment and restructuring
SM Entertainment announced on the March 14, 2018 that it had acquired actor management company KeyEast and FNC Add Culture, a subsidiary of FNC Entertainment.[8] By May 18, SM secured a 31 percent stake in FNC Add Culture and changed its name to SM Life Design Group at the same time as it completed its acquisition process, with FNC becoming the second-largest shareholder with an 18 percent stake.[9] Ahn Seok-joon, who also served as the chief executive officer (CEO) of FNC, will support the business alliance linking FNC and SM based on his experience as a management advisor of SM Life Design Group.[10] Through SM Life Design Group, FNC and SM have established a strategic alliance and expected to complete a "powerful" lineup by creating various business synergies in the domestic entertainment industry.[11] In addition, FNC acquired FNC Production, an entertainment production subsidiary of SM Life Design Group, and plans to continue the partnership with the media production business and its artists to carry out the drama production business.[12] At the end of March 2020, Shin Sung-bok, a business planning operator who previously worked for Samsung Life Insurance, Bokwang Investment, ISU Venture Capital, and M-Venture Investment, was appointed as the new CEO of SM Life Design group. In the industry, Shin is said to have reorganized SM Life Design Group's existing business divisions.[13]
On January 10, 2022, SM Life Design announced that the company held a shareholders' meeting to appoint Tak Young-jun, a chief marketing officer (CMO) of SM Entertainment, was appointed as an inside director in the company and took the position of CEO through a resolution of the board of directors. Former CEO Shin resigned as the company's inside director and CEO on the same day of the announcement. Additionally, the company appointed chief financial officer (CFO) Nam Hwa-min as its new inside director in addition to Tak.[15] As SM Entertainment's subsidiaries have divided roles into drama content production, such as KeyEast, and food service and subsidiary businesses, such as SM Life Design Group, the company's drama business was suspended, and its incorporation with Film Boutique was sold. With its restructuring of the business sector and suspension of drama production, SM Life Design Group instead acquired a 100% stake in Beacon Holdings, Tomatillo Korea, and MOA L&B International.[16]
