[theqoo] SM, REFUTES HYBE'S OFFICIAL STATEMENT "DISTORTION OF ALLEGATIONS REGARDING OFFSHORE TAX EVASION"

 

As CTP (CT Planning Limited), the international version of Like Planning, signed a contract directly with overseas labels, not SM, to hide its true purpose, this is not an issue that can be resolved by HYBE terminating the contract since CTP has no business relationship with SM. In the video uploaded by CEO Lee Sung Su, it was also mentioned that the matter in question was a direct contract between former chief producer Lee Soo Man and overseas labels, not a contract between CTP and SM.

Thus, HYBE’s stance is distorting the fundamental problem of CTP, which is the suspicion of offshore tax evasion.

If HYBE was aware of CTP, the international version of Like Planning, when signing the stock sales contract, then that means [HYBE] participated or turned a blind eye to former chief producer Lee Soo Man’s alleged tax evasion, and if [HYBE] signed the contract without knowing about the issue, it means that they are acknowledging that they were deceived by former chief producer Lee Soo Man. Hence, this would mean that HYBE’s management would need to explain to various shareholders and related agencies as to why an M&A that costs more than 1 trillion won (approximately $768.4 million) was done without once exercising due diligence.

In addition, in the official statement that HYBE published when announcing that they signed a SPA contract with former chief producer Lee Soo Man, the statement said, “Chairman Bang Si Hyuk expressed deep agreement with the Humanity and Sustainability campaign Lee Soo Man announced earlier this year and told Lee Soo Man of his desire to take part in using the influence of sustainable K-pop together,” and “Chairman Bang Si Hyuk stated that HYBE fully agreed with the strategic direction such as the implementation of metaverse, establishment of a multi-label system, and campaign to save the Earth.” We believe it is hard to believe that Chairman Bang Si Hyuk himself has not been informed of the details of the campaign that he claimed he “deeply agreed with.”

CR: Soompi

original post: here

1. If they knew it about the facts, then they agreed to them, and if they didn't, they should explain the responsibility to the shareholders. SM's stance is quite smart

2. No but it's an issue even if they didn't know ㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋ they spent billions of won for thisㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋ

3. ㅋㅋㅋㅋㅋㅋㅋㅋㅋ that's a good statement

4. SM's statement is good. Seriously, HYBE aren't fools and they're telling me that they weren't aware of anything? Are they joking? Do they think that they only spend 10,000 won on this? ㅡㅡ they spent billionsㅋㅋㅋㅋㅋㅋㅋㅋ no but if they want to take sides, they should just take their sideㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋ

5. Lee Sung Soo is a good speakerㅋㅋㅋ I can understand right away

6. Why are there so many HYBE shooters here? I'm so fed up

7. All the other community websites know that HYBE employees camp here ㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋ

8. The statement is so clean and well-written

9. HYBE really closed their eyes to all of this since the beginning and turned the nation into fools. They said that they were going to exclude Lee Sooman from their direction by mentioning "producing in Korea" and "3 years" and I was wondering why they would use such wording. But it's because they are planning to have CTP do the producing so they wouldn't be criticized later on if their lies were uncovered. They are just trying to create a loophole for Lee Sooman to escape.

10. The moment Bang Sihyuk decided to hold hands with Lee Sooman, it was already over.

[theqoo] HYBE'S REP "WE WERE NOT AWARE OF LEE SOOMAN'S CONNECTION WITH THE CTP, THERE WERE NO REASONS TO BE SUSPICIOUS"

HYBE refutes SM Entertainment CEO Lee Sung Soo's statement

"Hello, this is HYBE.

We are revealing HYBE’s statement as follows regarding the statement of refutation released by SM Entertainment (hereafter SM) today.

In the press release we distributed on February 16 regarding the suspicions about CT Planning mentioned by SM Entertainment CEO Lee Sung Su, we said:

When completing a SPA with Lee Soo Man, we were not told of Lee Soo Man’s ownership of the company CTP or of the contract between CTP and SM. Also, in case of a business relationship that we are not aware of, it was included in the contract that Lee Soo Man would resolve any business relationship that is discovered.

If CTP and SM are not directly contracted as said in SM’s refutation, it is even more natural that we are not aware of this. However, according to our contract with Lee Soo Man, it is already mutually agreed upon that no profits will be received regarding SM artists already contracted with CTP even if not direct contracts with SM. In addition, we will manage transparent contracts through our board of directors in order for no problems to arise in the future, so the problem raised by SM is meaningless. We are currently putting in effort to solve SM’s issues and have no reason to distort anything, and there is no reason for suspicions to be brought up regarding our efforts.

However, if SM thinks that the contract with CTP cannot be resolved through our SPA with Lee Soo Man, we want to ask what SM’s stance is on this besides exposing this contract.

Especially as this type of contract does not have much visibility outside of the entertainment agency, the entertainment agency’s management must manage these contracts transparently and fairly for the company and artists. There must be board members who approved this contract when it was being completed, and no matter which board members approved them, we hope that the current board members have taken adequate action about this contract.

The matters that SM is exposing and raising suspicions about are all revealing problems with SM’s corporate governance, and unfortunately, all of these problems occurred internally at SM. We actually resolved SM’s structural problems one by one with a positive viewpoint about the company, and we will continue to put in effort to resolve them.

However, SM must show effort to resolve the actual internal problems in order for these changes to create results. We do not think it is the right approach to raise suspicions against the largest shareholder that is solving SM’s problems.

We request that SM’s directors review if there are any aspects of what they are exposing to the public that they need to take responsibility for because of their approval and put in effort to improve the corporate governance in order to reassure SM’s fans, employees, artists, and stockholders.

Thank you."

CR: Soompi

original post: here

1. It does seem like they were unaware

2. Of course they were aware, it makes no sense that they weren't awareㅇㅇ they knew and probably signed some sort of defense contract 

3. How dare HYBE try to resolve issues within SM? It's obvious how they will treat SM once they take over the company ㅋㅋㅋㅋ at least, they should try to pretend better.

4. It must be nice for HYBE to have so many shinyeos (T/N: shinyeo = slave/derogatory term for fangirls)ㅋ Must be nice to have support even after hearing that Lee Sooman wants to open a casino

5. HYBE's shinyeos are the most legendary out of all the companies' shinyeos

6. If this is true, then HYBE are f*cking dumb, they paid 400 billion won for this

7. Then HYBE are foolsㅋ

8. They are not aware of the CTP but they surprisingly are giving Lee Sooman the authority to produce overseas~?

9. HYBE are saying the truth so why are they getting hate?

10. Do they really think that people would believe this? Just how much money did they spend on this?

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