SM Lee Seong-soo's representative attitude Entertainment Producers Association

The Korea Entertainment Producers Association criticized the revelations made by the current management of SM Entertainment (hereinafter referred to as SM).

On the 21st, the Korea Entertainment Producers Association (hereinafter referred to as the Entertainment Producers' Association) issued a second statement, saying, "Stop the ugly revelations of SM's current management that are destroying the Korean Wave myth."

The Korea Entertainment Association said, "Producer Lee Soo-man, the founder, and SM are the leading players and symbolic companies that created the Korean K-POP myth," adding, "Producer Lee Soo-man founded the company in the early 1990s. and introduced the new concept of an idol group and management system in 1996 and established it as HOT. Since his success, he is a legend of the Korean Wave K-POP who has planned and produced numerous stars, including BoA, TVXQ, Girls' Generation, Shinhwa, Super Junior, EXO, SHINee, Red Velvet, NCT, and Aespa. He was on the outskirts of the culture. “He was the driving force behind the creation of the myth that brought Korea into the ranks of full-fledged cultural powers.”

He added, “Our record producers are well aware that SM's success and reputation cannot be achieved simply with money and effort. Therefore, we cannot help but look with sorrow and confusion at the current situation in which the current management, which has taken control of management, is destroying the Korean Wave myth overnight by pushing it into a muddy fight.”

In addition, the entertainment association said, “We would like to ask what co-CEO Lee Seong-soo, who is the person who triggered this SM incident and who has been promoted rapidly through producer Lee Soo-man's halo and rose to the position of co-representative, really contributed to SM becoming what it is today.” He added, “If he had a shred of conscience, or even a normal way of thinking, would he be able to commit such an act of betrayal like a takeover?” He added, “His petty act of betrayal is not just limited to an ordinary fight for management control of one company, but will have an impact on the Korean Wave.” “I can't help but ask whether they are even thinking about the repercussions,” he said.

He continued, "As stated by Hive, if there is an incorrect governance structure, it can be blocked or changed internally. If there are management suspicions, they can be checked internally and resolved according to procedures. There is no need for the world to know about SM's internal problems. As Co-CEO Lee Seong-soo stated, if it is truly for the good of SM and not greed, then I hope the national-destroying act of disclosure will stop immediately,” he emphasized.

At the same time, he warned, “If you continue your campaign of exposure using the management rights that you trusted and entrusted to you because you are your wife's nephew, the Yeonje Association will never sit idly by.”

SM is currently experiencing internal trouble due to a dispute over management rights. SM co-CEOs Lee Seong-soo and Tak Young-jun recently presented the vision of 'SM 3.0' without former general producer Lee Soo-man and joined hands with Kakao. Kakao announced that it had secured a 9.05% stake in SM through a paid-in capital increase allocated to a third party and the acquisition of convertible bonds.

SM's largest shareholder, former general manager Lee Soo-man, immediately protested and took legal action, including filing for a preliminary injunction, and decided to sell 14.8% of his shares to Hive, the agency of global group BTS.

Then, SM CEO Lee Seong-soo recently exposed Lee Soo-man's suspicions of offshore tax evasion. In particular, Lee Seong-soo claimed that Lee Soo-man established CT Planning Limited (hereinafter referred to as CTP), a private corporation, and preempted profits from overseas album distribution by SM artists WayV, Aespa, and SuperM.

Ryu Ye-ji, Ten Asia Reporter ryuperstar@tenasia.co.kr