SM Entertainment Founder Accused of Embezzlement and Tax Evasion
One of South Korea’s biggest entertainment agencies, SM Entertainment, is undergoing an internal power struggle involving its founder Lee Soo Man, and his nephew and also the company’s CEO Lee Sung Soo. Amidst talks of Lee Soo Man selling his shares to HYBE, tension is running high with Lee Soo Man being accused of embezzling more than $570 million USD from the company, and evading tax
Korean news network Dispatch claims that Lee Soo Man had illegal dealings to take SM Entertainment to the public. The news network reports that Lee Soo Man embezzled the company funds to buy shares and instructed his employees to forge documents. When the company was investigated, Lee Soo Man reportedly rushed to fake his records.
In addition, Lee Soo Man’s salary draws ire over the impact it had over SM Entertainment’s bottom line. Although KPOP has gained worldwide recognition, SM Entertainment’s financial statement shows a deficit for a number of years. Instead, Lee Soo Man and his family have made a fortune trading the company’s stock.
Lee Sung Soo Urges Lee Soo Man to Stop
Despite Lee Soo Man’s immense wealth, the founder was accused of tax evasion by Lee Sung Soo. In a scathing video, his nephew also accuses Lee Soo Man of pushing for the legalization of marijuana, casino construction in order to expand his entertainment empire.
Hoping to end the dispute with his uncle, Lee Sung announces that he will be resigning from the company’s executive team and blames himself for standby as he watched Lee Soo Man’s illegal activities. Lee Soo Man asks for forgiveness and urges Lee Soo Man to kneel with him to beg for everyone’s forgiveness.
To express support for Lee Sung Soo, the company’s employees issue a joint statement and share their concerns over the company’s fate. The employees reveal that they are unable to stand by Lee Soo Man’s illegal action and express their desire to protect SM Entertainment from HYBE.
Source: World Journal
This article is written by Sammi for JayneStars.com.
i don’t even understand how this company is still afloat. the day it collapses, it’ll be more epic than enron/arthur andersen. can’t wait to watch it happen lmao but in south korea, corruption is rife, and the justice system is a joke.
Lol, yes it is. Look at that big bang member who basically walked out free for what he has done.it us very much like if u have the bucks then you own korea
seriously that prison sentence was an insult to all his victims. freaking eat-sh*t justice system.
Yup and the rich gets a lot of power but that is how it is in most countries but is more extreme in Korea.