Netizen Reacts To Dispatch’s Exposé On Lee Soo Man’s Mismanagement Of SM Entertainment
Netizens reacted to Dispatch‘s article in which it makes several allegations surrounding Lee Soo Man‘s management of SM Entertainment.
On February 17, Dispatch released an article in which it lists “118 Facts” about Lee Soo Man’s time as the head of SM Entertainment.
In the article, Dispatch lists several instances of Lee Soo Man’s “World-class greed” and follows the rise and downfall of K-Pop’s most-renowned business scion.
90. Lee Soo Man’s greed was becoming world-class, He established a company overseas and developed Like Planning season 2.
91. In 2019, Lee Soo Man formed CT Planning Limited in Hong Kong.
92. CT Planning Limited was Lee Soo Man’s logic and counter. A place where 6% of sales can be deducted from overseas and logically, 6% of sales can be justified in Korea.
93. SM Entertainment launched SuperM globally in 2019 in partnership with Capitol Music. In 2022, aespa was introduced to the United States’ market alongside Warner Records.
94. Lee Soo Man is known to have asked both companies for 6% of the sales under the guise of production fees.
— Dispatch
The article also provided context for Lee Soo Man’s controversial “production company,” Like Planning…
55. Just how much did Like Planning earn?
56. In 2000, SM Entertainment paid ₩2.10 billion KRW (about $1.63 million USD) for services to Like Planning. That same year, SM Entertainment’s operating profit was ₩1.85 billion KRW (about $1.43 million USD). Like Planning won out.
57. For the next 22 years, SM paid Like Planning for their services. In 2015, the service fee was renamed to a licensing fee.
58. How much did Lee Soo Man make in total from this?
59. In short, ₩174 billion KRW (about $135 million USD).
— Dispatch
While also attempting to deconstruct the faults in the relationship between Lee Soo Man and his nephew and current SM Entertainment Co-CEO, Lee Sung Soo.
109. Lee Soo Man was not stabbed in the back by his nephew, Lee Sung Soo. Lee Soo Man’s greed fostered Lee Sung Soo’s anger.
116. SM’s operating profit ratio is the lowest amongst the big 3 of SM, JYP, and YG. However, the payment for the company’s directors is the highest. The irony.
117. What if the company put shareholder interests first? SM’s price-to-earnings ratio would have been at least 25 times more that it was.
— Dispatch
Netizens reacted in disgust at Lee Soo Man’s greed and were shocked at the level of mismanagement at the company. Many felt it was necessary for Lee Soo Man to be cut off from SM Entertainment.
- “I’m rooting for anyone who will keep Lee Soo Man far away from SM Entertainment. Lee Soo Man is such a deep-rooted evil.”
- “Whoever takes SM, I hope they get rid of the current executives. What kind of reforms can you make with them on board?”
- “Sung Soo hwaiting!”
- “Wow, they really crossed every line.”
- “I’m rooting for you, Sung Soo.”
- “Wow, those holding SM shares will probably be so pissed after reading this.”
- “Lee Sung Soo, hwaiting. It’s great how he had courage even though he knew things like this would be revealed.”
- “The company is rotten to its roots.”
What are your thoughts?
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