Dispatch releases a 123 point article alleging Lee Sooman received 744.3B from SM through stock manipulations and direct embezzlement. Highlights (bc its so long)
1) Interpol Warrant. In 2003, LSM embezzled 1.3B to acquire SM stocks and he falsely stated that
1) Interpol Warrant. In 2003, LSM embezzled 1.3B to acquire SM stocks and he falsely stated that
SM had received a capital increase. For this he was given a suspended sentence of two years. LSMβs defense was that he didnβt do this embezzlement alone, it was agreed to a board meeting and the funds were paid back.
(Addl note: he fled the country and then returned when he was pardoned by President Roo Moo-hyun in 2007)
2) LSM would sell shares at a high price and then issue himself new shares at a much lower price via a paid in capital increase.
2) LSM would sell shares at a high price and then issue himself new shares at a much lower price via a paid in capital increase.
3) Like Planning/SM Enterprise. LP was created in 1995 and SM Enterprise in 1997. SM Enterprise managed the artists and SM would pay 20% of album sales in the form of a commission. LP did music consulting and production and was paid 15% of album sales.
In 2000, the year SM went public, LP was paid 2.1B while SMβs entire operating profit was 1.846B. Overall, SM paid LP 174.1B in total. (These two corps were LSMβs private entities) The fee taken by LP was reduced from 15% to 6% but it was 6% of the revenue and not album sales.
4) SM recorded losses from 2002
to 2004. In 2004, SM recorded a negative operating profit of -588M but LP received 1.8B in fees in 2004.
to 2004. In 2004, SM recorded a negative operating profit of -588M but LP received 1.8B in fees in 2004.
5) CTP. This is LP but overseas established in Hong Kong in 2019. In 2019, SM signed contract with Capitol Music to launch SuperM and in 2022, SM signed contracts with Warner Records for Aespa. LSM received 6% as a production fee which was paid into CTP.
6) Chris Lee appeared on SamPROTV on 28 Mar 2022 to defend Lee Sooman and payments to Like Planning.
7) In 2022, SM paid 6B to its four registered execs. Co-CEOs Chris Lee and Tak Young-Joon both received 1.8B
dispatch.co.kr
7) In 2022, SM paid 6B to its four registered execs. Co-CEOs Chris Lee and Tak Young-Joon both received 1.8B
dispatch.co.kr
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