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
(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.
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 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 SM’s entire operating profit was 1.846B. Overall, SM paid LP 174.1B in total. (These two corps were LSM’s private entities) The fee taken by LP was reduced from 15% to 6% but it was 6% of the revenue and not album sales.
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.
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.
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