The SM Town project in Los Angeles, an entertainment complex planned by SM Entertainment in Koreatown, has effectively collapsed after nearly a decade of efforts.
Kakao, which acquired SM last year, now holds management control. Since 2023, local businesses in Los Angeles have filed lawsuits against SM, claiming they have not been paid for construction work. On May 9, several Korean media outlets reported that the SM Town Los Angeles project had been abandoned and the building was now expected to be sold.
Korean American businesses confirm SM Town Los Angeles debts
According to Korean American businesses involved in the project, large posters of K-pop artists that once covered the building at 6th Street and Oxford Avenue in Koreatown have been removed recently.
Companies that filed lawsuits said they have not received payment for over a year and believe the project’s failure is now an established fact.
Chris Yi, CEO of Pub Construction, which oversaw the construction, said, “We are currently in arbitration, but the other party is not responding properly and continues to act unreasonably. The construction has been fully suspended for a long time, and other vendors have also not been paid for over a year.”
Pub Construction filed a lawsuit last year against SM Entertainment and its subsidiary, Creative Space Development, seeking more than $3.76 million in unpaid construction costs.
Foreclosure lawsuit planned over SM Town Los Angeles property
Steve Kim, CEO of the architectural firm that designed the SM Town Los Angeles project, said, “We plan to file a foreclosure lawsuit next week against Creative Space Development, a subsidiary of SM. The project has long since fallen through, and as long as litigation continues, selling the building will also be difficult.”
The Korea Daily attempted to reach SM Entertainment’s U.S. representative, identified only as Mr. Lee, to confirm the status of the lawsuits, the reason for removing the posters, and any possibility of restarting the project. As of 6 p.m. on May 11, no official response had been received.
BY YEOL JANG [jang.yeol@koreadaily.com]
