On February 15, prison association HWAWOO forwarded a enterprise inspiration on behalf of SM Entertainment’s former head producer Lee Soo Man to the company’s cutting-edge administration board.
Through the proposal, Lee Soo Man requested that the following be protected as a phase of the agenda for the twenty eighth familiar board assembly of shareholders at SM Entertainment, predicted to take vicinity in mid-March.
According to the share buy settlement signed by means of HYBE and Lee Soo Man, Lee Soo Man will defer his proper to vote at the twenty eighth frequent board assembly of shareholders to HYBE. Lee Soo Man will additionally advocate board member candidates chosen by means of HYBE to current to the ordinary board in advance of the twenty eighth gathering.
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The following men and women have been encouraged via HYBE Labels for board candidacy at SM Entertainment twenty eighth prevalent board assembly of shareholders: Lee Jae Sang, CEO of HYBE America, Jung Jin Soo, Chief Legal Officer of HYBE, and Lee Jin Hwa, Chief of Management and Planning at HYBE have acquired endorsement for chief inside officer candidacy.
Kang Nam Gyu, senior personnel lawyer of GAON Law Firm, Hong Soon Man, professor of public administration at Yonsei University, and Lim Dae Woong, the South Korean representative of the United Nations Environment Program Finance Initiative have obtained endorsement for chief exterior officer candidacy.
Park Byung Moo, CEO of VIG Partners has obtained endorsement for non-executive officer candidacy, whilst Choi Kyu Dam has obtained endorsement for non-executive auditor candidacy.
In order to make certain the innovative freedom of SM Entertainment, HYBE Labels will now not recommend candidates in innovative manufacturing and management, which include Bang Si Hyuk and Min Hee Jin.
CEO Lee Sung Soo in addition claims that Lee Soo Man nevertheless owns different ‘paper companies’ seizing up to 6% of SM Entertainment’s foreign places profits
SM Entertainment’s co-CEO Lee Sung Soo intends on exposing Lee Soo Man, founder and former head producer of SM Entertainment as properly as Lee Sung Soo’s uncle, for a couple of “underhanded dealings” and “selfish actions” which the contemporary CEO believes are unsafe to the future of the amusement agency.
On February 16, Lee Sung Soo printed a video by means of his YouTube channel, claiming that he meant on unearthing “the different side” of Lee Soo Man’s things to do as the head producer and the biggest shareholder of SM Entertainment.
First, Lee Sung Soo alleged that even even though SM Entertainment’s contract with Lee Soo Man’s LIKE Holdings got here to an cease remaining year, Lee Soo Man nonetheless possesses a wide variety of different “paper companies” from which he is seizing SM Entertainment profits.
Lee Sung Soo stated, “In 2019, Lee Soo Man set up CT Planning Limited, a enterprise in Hong Kong. The agency was once based with about $1 million USD in Lee Soo Man’s private funds.”
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CEO Lee continued, “After 2019, SM Entertainment signed partnerships with S.M. Entertainment Beijing Co., LTD, Capitol Records, and Warner Records for the international distribution of song by using WayV, SuperM, and aespa.
An fascinating factor right here is that even though SM Entertainment produces all world content material associated to WayV, SuperM, and aespa, a 0.33 birthday celebration in the structure of CT Planning Limited creates a deformity in the shape of the the world distribution contracts.
If these had been ordinary distribution contracts, SM Entertainment and its associate agency would without delay calculate the earnings of each sides, then primarily based on the divided earnings acquired via SM Entertainment, Lee Soo Man would be paid his 6% in producing expenses via LIKE Holdings domestically.
Instead, Lee Soo Man has signed separate contracts with all businesses involved, and consequently claims 6% of the complete income earlier than the income are calculated and disbursed to SM Entertainment and companion companies.”
Lee Sung Soo similarly explained, “The contract between SM Entertainment and Lee Soo Man’s LIKE Holdings was once problematized each in 2014 and 2021 via Korea’s National Tax Service.
As a result, SM Entertainment was once pressured to pay billions in ‘unpaid’ taxes.” CEO Lee then accused Lee Soo Man of the usage of his Hong Kong company, CT Planning Limited, as a skill to omit National Tax Service policies and declare greater income for himself.
In fact, Lee Sung Soo claimed that Lee Soo Man will proceed to earnings in the manner defined above thru CT Planning Limited, as CTP’s contracts with SM Entertainment and a variety of remote places distribution agencies nonetheless continue to be valid.
Finally, Lee Sung Soo accused HYBE Labels of failing to take a look at all of the information earlier than signing the sale of shares settlementwith Lee Soo Man, citing this as one of the many motives why HYBE will in all likelihood face backlash from contemporary SM Entertainment personnel and shareholders.
