Claim: Girls' Generation was formed by a South Korean entity.

S.M. Entertainment is a South Korean entertainment company established in 1995 by Lee Soo-man . It is currently one of the largest entertainment companies in South Korea . The company operates as a record label , talent agency , music production company , event management and concert production company , and music publishing house .   The label is home to prominent K-pop artists such as BoA , S.E.S. , TVXQ , TRAX , The Grace , Super Junior , Girls ' Generation , SHINee , f -LRB- x -RRB- , EXO , Red Velvet , NCT , and formerly to pioneering groups H.O.T. , Fly to the Sky , and Shinhwa . It also manages a number of actors , including Kim Min-jong and Lee Yeon-hee . In Japan , S.M. Entertainment co-publishes Avex Trax releases for artists including Ayumi Hamasaki , Namie Amuro , and Koda Kumi , as well as Johnny 's Entertainment artists such as Arashi and KAT-TUN .   In 2015 , S.M. Entertainment had reported revenues of KR 325 billion -LRB- approximately US$ 287 million -RRB- and a net income of KR 21.7 billion -LRB- US$ 19 million -RRB- .   In 2016 , Alibaba Group acquired a 4 % controlling stake in S.M. Entertainment .