Former SM Entertainment CEO Lee Soo-man exposes hundreds of billions of won in "slush funds" as controversy grows with allegations of misconduct following Hive's acquisition.

 

Former SM Entertainment (SM) General Producer Lee Soo-man is under fire for attempting to swallow hundreds of billions of won of "dirty money" both inside and outside the company. The situation has escalated the intense dispute over SM's management, and the money he has been trying to maintain since leaving the company is spreading to a valuation fight between the two sides. It is said that he cannot escape criticism from the industry and society, as he laid the groundwork for the current battle for control.

According to industry insiders on the 25th, HYBE has decided to acquire the stake of Lee, a former general producer, and support his "tree-planting" activities for a total of 100 billion won over 10 years. The fact was specified in the contract signed at the time when HYBE acquired the former general producer and his 14.8% stake for a total of 428.1 billion won earlier this month.

Lee had been carrying out a tree-planting campaign under the pretext of ESG (Environmental, Social, and Governance) and was aimed at planting trees and saving the environment, using the K-pop fandom. However, Lee Sung-soo, co-CEO of SM Entertainment, claimed through YouTube on the 16th that it was actually related to his real estate business ambitions.

It has also been revealed that Lee received a total of KRW 174.1 billion through his personal company, Like Planning, from 2000 to last year. When the fund, Align Partners, dug deeply into this fact, he lost his seat in the company, and the situation eventually led to the current dispute over management rights by transferring his stake to HYBE.

Throughout the dispute, his wrongdoing has been constantly exposed. The producing contract between SM and Like Planning, which ended officially last year, was revealed to be practically false according to the "posthumous settlement agreement" announced by Align Partners on the 9th of this month. It was Align's claim that, under a royalty contract with SM until 2092, Like Planning would receive more than KRW 50 billion from the company for the next 10 years.

On the 16th, Co-CEO Lee Sung-soo claimed through YouTube that a foreign edition of Like Planning exists. It was revealed that Lee Soo-man had established CTP (CT Planning Limited) in Hong Kong and embezzled 6% of SM Entertainment's overseas producing album revenue. As the controversy deepened, even offshore tax evasion was raised, and the National Tax Service said it would investigate the matter. The recent public dispute surrounding Lee Soo-man is related to the management dispute at SM Entertainment.