You guys must be extremely shocked and confused when a series of dramas related to SM and
the duo Lee Soo Man - Lee Sung Soo keep coming at breakneck speed recently, right?
While many of you still don't understand what's really going on and think that maybe this
is the end of SM, I've summed up the whole thing to give you a better overview of this
drama.
So, let's get started!
Maybe I don't need to explain the case of HYBE acquiring SM anymore because it was discussed
in great detail in this video: https://www.youtube.com/watch?v=eqwgMSply9U In today’s discussion, I will report and
discuss Lee Sung Soo's allegations against Lee Soo Man and the events that happened after
that point in the most complete and detailed way.
So, on the morning of February 16, Lee Sung Soo uploaded a 28-minute video directly "unmasking"
the founder and former production director Lee Soo Man, making many accusations against
his own uncle including tax evasion as well as drug and casino dealing.
Specifically, the allegations from Lee Sung Soo against the former SM president are as
follows:
Lee Soo Man set up a private company called CT Planning Limited in Hong Kong in 2019 with
a capital of $1 million to avoid the surveillance network of the National Tax Service.
He also required SM to pay him 6% of the artist's album sales for the next 70 years, as well
as 3% of the management revenue for three years from 2023, the total amount falling
to about 80 billion Won.
Along with that, Lee Soo Man made a series of side requests such as:
Artists have to always show the media that they need Lee Soo Man.
All SM artists have to sign a contract with Lee Soo Man's CT Planning for all overseas
promotions.
Delay the release of albums
Not only that, Lee Soo Man even managed SM to have lower sales in the first quarter to
prove that the company couldn't make a profit without him.
According to the share purchase agreement between HYBE and Lee Soo Man, Lee Soo Man's
domestic production is restricted for 3 years, but his overseas production is not restricted.
That's why he boldly sold SM to HYBE and then freely roamed in the West with the ambition
of building "Smart Entertainment Cities" in many different countries, which includes EDM
festivals, auditions, space stations, etc.
It is worth mentioning that Lee Soo Man's construction of a music city is related to
marijuana and casinos as Mr. Lee once mentioned finding ways to legalize marijuana in those
locations so that tourists can freely use this banned substance in his entertainment
centers.
In addition, Lee Soo Man wants SM artists to perform in these places, and the SMTOWN
concert is one of the tools for him to fulfill that wish.
Therefore, SM’s management team always has to check the artists' schedules very closely.
Actually, Mr. Lee's intention is to take advantage of SM facilities, employees and artists to
create "Lee Soo Man World" in various countries and profit from this business.
More ridiculous, Lee Soo Man even requires all the most popular songs of SM to contain
tree-planting and sustainability spirit because he wants to break into the real estate business.
It was these unreasonable directives that made SM’s directors and artists very discontent,
leading to the delay of aespa's comeback schedule.
Well, just a few days ago, the spotlight belonged to HYBE for successfully taking over SM, and
now it’s all on the duel between Lee Soo Man and his nephew.
With the situation that Lee Soo Man keeps getting blacked-out like this, HYBE will be
at a disadvantage as it would be cursed for a long time from now on for accidentally helping
Lee Soo Man carry out his plot.
Despite being exposed by his nephew and summoned on every forum, up to this point, Lee Soo
Man's side has remained silent about all allegations.
On February 16, SM Vice President Cho Byung Gyu, aka Lee Soo Man's effective assistant,
informed the press, "According to the law, Director Lee Sung Soo may have to compensate
for defaming Lee Soo Man, however, Mr. Lee has prevented this from happening”.
Mr. Cho further revealed that after being “betrayed” by Lee Sung Soo, Lee Soo Man
often confided, "He’s my late wife’s nephew.
I watched him grow up from the age of 4, then he joined the company at 20 and stood by me.
He’s a good boy whose father was a Christian pastor.
I'm really sad."
Due to Lee Sung Soo's accusations against Lee Soo Man, the National Tax Department is
now reviewing a tax investigation against SM, related to the suspicion of tax evasion
abroad of the former SM director.
It seems that the fact that Lee Soo Man evaded taxes abroad to build "Lee Soo Man Universe"
seems valid because in the past, he was also involved in a similar case related to embezzlement
of the company’s money and was once wanted by Interpol, even received a prison sentence.
Specifically, according to some disclosures by Dispatch, SM planned to list on the stock
exchange in 1999.
At that time, any company that wanted to list needed 1 billion Won but SM's capital that
year was only 50 million Won.
After that, SM raised an additional amount of 1,15 billion Won from investors.
However, this investment amount for some reason flowed into Lee Soo Man's pocket.
It turned out that Mr. Lee had stolen 900 million Won from SM Entertainment's bank account
and 250 million Won from SM Enterprise's account and used this money to buy shares.
By September 2000, SM's market capitalization reached 180 billion Won, so the amount of
1,15 billion withdrawn by Lee Soo Man increased to 90 billion Won.
In early 2003, Lee Soo Man was highly wanted by Interpol and was later sentenced to 2 years
in prison and 3 years of probation.
Cornered, he argued that he was not the only one embezzled and that the stolen money was
returned.
However, an SM executive revealed that the embezzlement was carried out under the direction
of Lee Soo Man and only when the prosecution began to investigate did he return the money
in a hurry.
It can be seen that Lee Soo Man got rich through stocks and started getting crazy rich in 2005
by selling at a high price and buying back at a low price.
In the following years, Lee Soo Man used various tricks to profit from stocks and the total
amount of money that he "sucked" from his own brainchild is 744,3 billion Won in 23
years.
Well, so the saying “beware of smart people” is true considering the fact that Lee Soo
Man is both so smart and evil.
Not only does he have a great musical mind and knows how to create the most influential
idols, but he is also extremely acumen in business.
No wonder he built a whole mighty SM empire and though he is indeed heartless and scheming,
it must be admitted that Lee Soo Man is one of those who have the biggest brains.
Strange enough, while Lee Soo Man should have retired with all the fame and money he’s
got, he just didn’t stop and even desired more.
Human greed is indeed bottomless: when they have money, they want fame, when they have
fame, they want power.
Just when people thought the whole thing was coming to an end, it became even more dramatic
when Lee Sung Soo continued to post a second video with pleas to Lee Soo Man, expressing
that he was heartbroken when hindering his own uncle, but he has to do that because it
is the only way to save him from the “hell”.
Lee Sung Soo also emphasized that his uncle has sunk too deeply into vain ambitions and
cruel schemes, as well as hoped that Lee Soo Man would wake up and beg for forgiveness.
Finally, Lee Sung Soo wistfully confided that he felt deeply regretful and incompetent when
being unable to fulfill his duty as the representative director of the company and failing to prevent
Lee Soo Man’s greed and tyranny, making it impossible for everyone in SM to work comfortably.
Therefore, Lee Sung Soo confirmed that during the regular shareholder meeting in March,
he will step down from the position of representative director and chief executive officer, and
will return to work as a music producer.
Pheww, do you guys feel this whole drama is starting to look like the real K-pop version
of Penthouse?
The Kpop world is indeed all roses when looking, but behind it is a dark, scary underworld
where forces are always fighting each other for money and power, and idols who seem to
be the most influential turn out are just wooden puppets in the hands of tycoons, and
their fate is completely determined by others, just like how DBSK was exploited by Lee Soo
Man with a slave contract, and the way aespa's existence is hanging by a thread despite being
SM's No.1 girl group.
So, do you have any questions about this “long-running drama”?
Do you think all of Lee Sung Soo's accusations against Lee Soo Man are true?
And what will be the fate of idols under SM after this whole thing?