Netizens React To Lee Soo Man’s Reported Plans To Sue SM Entertainment
Netizens reacted to Lee Soo Man‘s threat to sue SM Entertainment, the very same company that he founded.
On February 7, it was announced that Kakao had become SM Entertainment’s second largest shareholder by securing a 9.05% stake in the company.
Kakao Secures 9.05% Stake In SM Entertainment And Becomes Second Largest Shareholder
The purchase concludes a months-long dance between the two companies. Bae Jae Hyun, CEO of Kakao Community Investment, stated he anticipated great synergy between the companies.
Through this investment and cooperation, we expect that the two companies will be of great help to each other in responding to the fierce competition in the global music and content market and targeting the global mainstream of K-Content.
— Bae Jae Hyun, CEO of Kakao Community Investment
Not long after, Lee Soo Man’s lawyers alleged that SM Entertainment had used illegal methods to make shares available for Kakao to purchase and, in a startling announcement, threatened to file an injunction to block the sale.
On January 20 of this year, SM Entertainment’s co-CEOs, Lee Sung Soo and Tak Young Jun, agreed to Align Partners’ proposal without consulting Lee Soo Man, the largest shareholder in the company. This action thus further increased the tension and management disputes between the company and the largest shareholder, Lee Soo Man.
It is clearly a violation of commercial law and the articles associated with the law for SM Entertainment’s board of directors, which is led by the co-CEOs, to issue new shares and convertible bonds to third parties at a time when there is such a dispute within the company.
As the legal firm of the largest shareholder, we will block SM Entertainment’s board of directors’ attempts at this through an injunction, banning the issuance of new shares and convertible bonds, and we will hold the directors responsible for this both civilly and criminally liable.
— Hwawoo, legal firm representing Lee Soo Man
The news follows infighting in the company over Lee Soo Man’s role at the label. On January 6, SM Entertainment’s Co-CEOs Lee Sung Soo and Tak Young Jun unveiled plans for a “post-Lee Soo Man era” presented as “SM 3.0.”
SM Entertainment Employees Reportedly Want Lee Soo Man “Out” Amid Reports Of Label Infighting
Netizens responded to the news in shock, as Lee Soo Man is widely credited as not only the founder of SM Entertainment but is also hailed as one of the pioneers behind K-Pop’s international success. Many other netizens worried about their shares in the company’s stock as well as what this might mean for their favorite idols.
- “But I feel like if this goes to court, Lee Soo Man might win.”
- “So all we need to do is get out the popcorn and watch?”
- “Just leave… My idols’ plans are going to get screwed again. ^^.”
- “I think Kakao violated the law. Also, I’m not sure what you guys expect, but none of the labels Kakao has a significant stake in do very well.”
- “Sigh, SM Entertainment’s artists must have mixed feelings.”
- “For f@ck’s sake, my idol needs to make a comeback, ㅠ.”
- “You’ve more than reaped your share, so now leave. There are so many comebacks pushed back.”
Read more about Lee Soo Man’s lawsuit in the link below.
Lee Soo Man Is Going To Sue SM Entertainment For Illegal Business
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