SM Leisure CEO Lee Sung Su has launched a video talking out in opposition to former chief producer Lee Soo Man.
On February 16, Lee Sung Su uploaded a video to his private YouTube channel sharing his assertion about SM Leisure and Lee Soo Man, revealing that that is solely the primary a part of a sequence of movies.
Based on Lee Sung Su, Lee Soo Man established the worldwide manufacturing firm CTP (CT Planning Restricted) utilizing $1 million of capital, much like how he beforehand established the Korean firm Like Planning. He modified the contract buildings for the music distribution of WayV, SuperM, and aespa in order that they undergo the Chinese language and U.S. labels in addition to CTP. Usually, SM and the related labels ought to settle their income with one another first, after which Like Planning (Lee Soo Man) ought to obtain 6 % of what SM will get. Nonetheless, Lee Soo Man directed separate contracts with every label, and with CTP, he’s receiving 6 % earlier than SM and the labels settle their income. Lee Sung Su alleges that Lee Soo Man did this to evade the Korean Nationwide Tax Service. The CTP was not fashioned only for that trade however for limitless international growth and an try and receive manufacturing royalties in advancing overseas.
CTP is a separate abroad company from Like Planning. The contracts between CTP and abroad labels are nonetheless energetic—and can proceed to be energetic—and are fully totally different from the manufacturing contract between SM and Like Planning that was terminated final 12 months.
As the manufacturing contract with Lee Soo Man was coming to an finish in December 2022, Lee Soo Man ordered to not reveal any of the longer term plans relating to producing that had been mentioned. The administration and manufacturing groups had been making ready to launch an organizational restructuring based mostly on a multi-production heart.
Nonetheless, the contract expiration didn’t imply a brand new begin for SM. In January 2023, Lee Soo Man extra brazenly expressed the pursuit of his non-public pursuits. He ordered the next:
- Announce by way of the press that the artists want Lee Soo Man.
- Use the workers to instigate that Lee Soo Man is required.
- Lee Soo Man and SM briefly set a consulting contract domestically and justify Lee Soo Man’s actions.
- All of the albums and artists promoted overseas ought to signal a contract with Lee Soo Man’s abroad cooperation CTP, or SM ought to signal a second producing contract with Lee Soo Man in Korea.
- Make a response workforce for Lee Soo Man even when it takes 10 billion received (roughly $7.8 million) to realize this.
- Make it in order that the corporate doesn’t make income with out Lee Soo Man, so discover a plan to decrease first quarter income.
- After releasing the music that completes manufacturing in December, contemplate delaying mid-to-late February and March releases till April.
Funding agency Align Companions requested administration construction reform from SM Leisure and stated they’d reveal info that may decrease the popularity of the corporate and Lee Soo Man if reform is just not achieved. This info was about Lee Soo Man receiving 6 % of gross sales from already launched albums for 70 years and three % of administration gross sales from 2023 for 3 years, totaling to about 80 billion received (roughly $62 million), though the manufacturing contract between Lee Soo Man and SM Leisure had already ended.
Lee Sung Su felt ashamed and messaged Lee Soo Man about turning into impartial from him. Within the video, Lee Sung Su features a voice recording of Lee Soo Man persuading folks to take a particular stance and to help him.
In one other a part of the video, Lee Sung Su mentions that Lee Soo Man pushed for private initiatives similar to the development of a “sensible leisure metropolis” or “music metropolis” and Okay-pop festivals selling sustainability and tree planting. The music metropolis Lee Soo Man was envisioning was additionally linked to a on line casino, and he additionally mentioned the legality of utilizing marijuana in order that vacationers can benefit from the on line casino and pageant much more. Based on Lee Sung Su, Lee Soo Man wished to make the most of SM artists to market “Lee Soo Man’s world” created in nations the world over.
Lee Sung Su additionally shared that aespa was initially scheduled to make a comeback on February 20 with their first live performance scheduled for February 25 and 26, however their comeback was postponed resulting from Lee Soo Man’s stubbornness. Lee Soo Man ordered SM Leisure’s A&R workforce and producer Yoo Younger Jin to incorporate lyrics about tree planting, sustainability, and ESG in all vital songs launched by the company. This included aespa’s comeback observe with varied phrases unrelated to Okay-pop similar to “simply sustainability,” “a minimum of one diploma decrease,” “coexistence,” greenism,” and “tree planting” within the lyrics. Because the music was fully disconnected with aespa’s workforce colours and idea, the workers struggled to provide related content material, and Lee Sung Su says that the aespa members additionally teared up as a result of they had been upset. Lee Sung Su and the COO determined that it will be finest to postpone aespa’s comeback, and they’re now making ready with new music.
Lee Sung Su concludes the video by asking all of the viewers to guard SM.
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