CNN Indonesia
Thursday, 09 Feb 2023 19:00 WIB
Lee Soo-man said that SM Entertainment, the company he founded, had taken illegal actions regarding the partnership with Kakao. (Getty Images via AFP/Theo Wargo)
Jakarta, CNNIndonesia —
Lee Soo-man give a strong statement against SM Entertainment, the agency as well as the company he founded. He said SM Entertainment had committed an illegal act.
This statement was made shortly after SM Entertainment announced a partnership with Kakao. The Korean technology giant acquired a 9.05 percent stake in SM.
As reported Korea Herald on Wednesday (8/2), the total acquisition of the shares was more than 217 billion won, or around IDR 2.6 trillion (1 won = IDR 11.99).
The partnership is a trilateral agreement between SM Entertainment and Kakao and its subsidiary, Kakao Entertainment, to expand the reach of content overseas.
Lee Soo-man opposed the partnership and clarified his position through legal representation.
“SM Entertainment is currently experiencing business competition between the largest shareholder Lee Soo-man and affiliate partners sheltered by shareholder private equity funds,” Lee Soo-man said through law firm Hwawoo.
“Thus, it is an illegal move against the commercial law and articles of association of the SM board of directors to issue new shares as well as convertible bonds to a third party.”
He also ensured that SM Entertainment must be held responsible for violating business laws. Not only that, sources said Lee Soo-man flew to Korea from the US since Tuesday (7/2) because of the feud with SM Entertainment.
Meanwhile, SM Co-CEO Lee Sung-soo and Tak Young-jun on Friday (3/2) announced the company had ended the contract with producer Lee Soo-man and drew up a blueprint for SM’s new chapter under “SM 3.0.”
SM 3.0 involved setting up five different production centers and an independent music label to diversify production.
Thus, the system is completely different from the system built by Lee Soo-man as the person in charge of all music production processes.
Following the announcement, actor and singer Kim Min-jong, who is also an SM executive, sent an email to all SM employees scolding the company for making decisions without the consent of others.
Kim Min-jong emphasized that SM artists needed Lee’s production skills.
However, some employees showed support for the company’s new vision.
(chris)