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Lee Soo-man

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In this Korean name, the family name is Lee.

Lee Soo-man (Korean: 이수만; Hanja: 李秀滿, born 18 June 1952) is a South Korean business executive and record producer who is best known for being the founder of SM Entertainment, a multinational South Korean entertainment company based in Seoul.[1] He has also been referred to as the "president of culture", as one of the pioneers of the Korean Wave.[2] Lee debuted as a singer in 1971 while he was a student at Seoul National University. In 1989, he founded SM Entertainment, which has since become one of the largest entertainment companies in the country.

Lee Soo-man
Lee in 2019
Born (1952-06-18) 18 June 1952 (age 72)
Jeonju, Jeolla Province, South Korea
Alma mater
Occupations
  • Business executive
  • record producer
Known forFounder of SM Entertainment
Spouse
Kim Eun-jin (formerly known as Kim Ji Hye)
​
​
(m. 1984; died 2014)​
Children2
Relatives
AwardsEungwan Order of Cultural Merit (2011)

Biography

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1952–1980: early years and singing career

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Lee was born in Jeonju, South Korea on 18 June 1952, and attended Seoul National University on and off between 1971 and 1979.[3][4] Lee debuted as a member of the band April and May (사월과 오월, alternatively 4월과 5월) in 1972 (he had joined the band in 1971), but he later departed from it for health reasons.[5] He gained spotlight for his "good boy" image, supported by the fact that he was one of the few people who were not involved in the weed scandal among Korean celebrities in 1975, and his high academic credentials in Seoul National University. He became known for hit songs such as "행복 (Happiness)", released in 1978, and "한송이 꿈 (A Piece of Dream)" released in 1976.[6] In 1977, he was a member of the Korean indie band Sand Pebbles [ko].[7] In addition to his career as a musician and his studies in university, he worked as a radio DJ and TV host during this time.[4] Lee Soo-man was also known for his trio with singers Lee Moon-sae and Yoo Yeol [ko] called Masamtrio (馬三트리오), named as such because of their appearances that resemble that of a long face of a horse.[8][9] In 1980, he formed the band 이수만과 365일 (Lee Soo-man and The 365 Days). However, media censorship policies under the Chun Doo-hwan government discouraged him from a career in the Korean music industry.[citation needed]

1980–1985: studies in the United States

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In the early 1980s, Lee decided to leave the entertainment world in order to pursue a career in computer engineering. He went abroad to work on a master's degree at California State University, Northridge,[10] where he witnessed the rise of "superstars of the MTV generation" such as Michael Jackson.[1] Inspired by the heyday of MTV in the United States, Lee set his sights on laying the foundation for the modern Korean pop music industry. In 1985, he returned to Korea "with a vision of what the Korean music industry could be."[4]

1985–2021: founding SM Entertainment

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Following his return to Korea, Lee ventured back into the entertainment world by working as a DJ and presenter. In 1989, after four years of saving money and gaining experience in the industry, he established an entertainment company called SM Studio (named after his initials) in the Apgujeong neighborhood of Seoul, and signed singer Hyun Jin-young. During the 1990s, SM Studio developed an in-house system that looked after all aspects of its artists' careers.[4] Lee's approach was targeted at teenage audiences, and took a holistic view of the qualities needed to become a successful entertainer.[11] The company was renamed SM Entertainment in 1995. In 1997, he founded the music production company Like Planning.[12]

In February 2010, Lee resigned from his position as a member of SM's board of directors, but maintained a role in the company's "management and artist development" divisions.[13] He continued to exert influence over SM through his production company, Like Planning,[14] taking 6% of their revenue as a consultancy fee for his involvement in the music production process.[12] He remained the biggest shareholder,[15] controlling the company's management rights.[16] He founded the music publishing company Culture Technology Group Asia in May 2015 and drone company LeePollux in February 2019.[17]

In 2019, KB Asset Management, SM's third-largest shareholder, sent an open letter to the company complaining that Like Planning was taking 46% of SM's operating profit each year.[18] They demanded a merger between Like Planning and SM, which the company rejected.[12] On 23 January 2020, Lee Soo-man was listed by Billboard as one of the world's influential music industry leaders.[19][20] He worked on South Korean girl group Loona's 2020 EP [#], which was his first ever project away from his namesake SM Entertainment.[21]

2022–present: departure from SM Entertainment

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In October 2022, SM announced that they would terminate their production contract with Lee's Like Planning by the end of the year.[22] On 3 February 2023, SM said that they would restructure the company without the help of Lee, adopting a multi-production center system to replace his role as chief producer.[23] Kakao Entertainment purchased a 9.05% stake in SM, making them the second-largest shareholder, and signed a business agreement with SM to fund their plans.[24] Lee, objecting to this, filed an injunction against the issuance of new shares and convertible bonds, which was upheld by the court.[25] He sold his stake in SM to Hybe Corporation, making them the biggest shareholder. Hybe announced their intention to acquire the company with Lee's support. This sparked a battle for SM's management rights, pitting Lee and Hybe against the SM executives and Kakao.[26]

Lee Sung-soo, SM's co-CEO and Lee's nephew by marriage, uploaded a video to YouTube in which he levelled a series of accusations at Lee. In the video, he claimed that Lee had founded a company called CT Planning Limited in Hong Kong in 2019 to evade taxes, through which he was taking 6% of earnings from artists' overseas activities. The company had been established using SM's assets but was owned solely by Lee, and was the foreign equivalent of Like Planning. He also said that Lee wanted to force artists to publicly declare his importance to the company and attempted to insert environmental references into songs to promote his business interests.[14][27][28] The National Tax Service said they would investigate the claims of tax evasion.[29] Lacking the funds of their competitor, Hybe eventually withdrew from the takeover battle, enabling Kakao to become the largest shareholder and obtain management rights.[30] Lee released a statement saying he was "moving toward the future".[31]

Upon leaving SM, Lee established a company called Blooming Grace, which will focus "on the fusion of culture and technology". He acquired part of the Chinese autonomous aerial vehicle company EHang.[17]

Personal life

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Lee's wife, Kim Eun-jin, died from cancer on 30 September 2014.[32]

Lee is the paternal uncle of Sunny, one of the members of the popular SM group Girls' Generation.[33]

Philanthropy

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In 2014, Lee donated ₩500 million to the Korean Red Cross to help the victims of the Sewol ferry disaster.[34] He directed the Asia performance of Global Citizen's charity concert, Global Goal Live: The Possible Dream.[35] On 8 March 2022, he donated ₩500 million to the Hope Bridge Disaster Relief Association to help those affected by the massive wildfires that started in Uljin, Gyeongbuk. and also spread to Samcheok, Gangwon.[36]

Controversies

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Embezzlement case and conviction

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In 2002, the Supreme Prosecutors' Office of the Republic of Korea found evidence of Lee earning tens of billions worth of illegal market profits in August 1999 by acquiring 1.1 billion worth of stocks when listing stocks of SM Entertainment at KOSDAQ by a paid-in capital increase.[37] The Supreme Prosecutors' Office of the Republic of Korea also investigated Lee regarding circumstantial evidence of lobbying to producers in broadcasting stations and keeping a tremendous amount of cash in his personal office and vaults.[38]

Lee tried to escape prosecution by staying overseas from June 2002, and was found in a golf course in Los Angeles on 2 August in the same year.[39] While on the run, Lee's passport was nullified and Lee was chased by Interpol.[40] Lee eventually came back to Korea to be investigated on 22 May 2003.[41] A pre-arrest warrant was issued on 7 October,[42] and Lee was arrested on 8 October.[43] On 14 October, Lee was approved of bail after paying 30 million won. On 19 October, Lee was prosecuted without detention.[44]

In September 2004, the Supreme Court of Korea sentenced Lee to two years of imprisonment along with three years of probation.[45] Lee was released in a special exemption in 2007 commemorating the fourth year of Roh Moo-hyun's presidency.

Slave contract

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In 2009, three members of the boy band TVXQ took their management agency SM Entertainment owned by Lee to court, claiming that the agency's 13-year-contract (often nicknamed a slave contract) was too long, too restrictive, and gave them almost none of the profits from their success.[46][47] The following year, in 2010, South Korea's Fair Trade Commission (KFTC) created a rule that limited entertainment contracts to seven years.[48]

Other controversies

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In 2015, Lee Soo-man was alleged to have violated foreign exchange rules, having failed to report real estate purchased in Los Angeles, as mandated by the Foreign Exchange Law. His company responded that it was a "mistake" made by their American subsidiary.[49] In 2021, he was included in the names of figures in the Pandora Papers. He was mentioned 399 times across 280 documents, tying him to eight paper companies in Hong Kong, five of which used a nominee service to conceal the source of their funds. SM Entertainment denied the allegations and said the companies had been founded using his father's assets.[50] Lee and SM were investigated by the National Tax Service following suspicions that he had omitted financial information and leaked company money in corporate transactions. As a result, SM was ordered to pay the government 20.2 billion won.[51]

Discography

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Albums

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  • Lee Soo-man (Jigu Records, 1977)
  • Lee Soo-man (Shinsegae, 1978)
  • 애창곡집 (Jigu Records, 1978)
  • Greatest (Universal Record Co., 1980)
  • Lee Soo-man (Shinsegae, 1983)
  • Lee Soo-man (Han Kook Record, 1985)
  • 끝이 없는 순간 (Asia Record Co., 1986)
  • NEW AGE 2 (Han Kook Record, January 1989)
  • NEW AGE (Asia Record Co., November 1989)

Awards

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The name of the award ceremony, year presented, award category, nominee(s) of the award, and the result of the award
Award ceremony Year Category Nominee / work Result Ref.
Academic Conference by Business Released Society Small but Strong Business Entrepreneur Award Lee Soo-man Won
Gaon Chart Music Awards 2012 K-Pop Contribution Award Won
2021 K-Pop Contribution Award Won
Golden Disc Awards 2008 Record Producer of the Year Won
Korea-China Management Awards 2018 CEO Award Won [52]
Korea Creative Content Agency 2005 Entertainment and Art Development Award Won [53]
Korea Economic Daily 2020 Dasan Business Award Won [54]
Korea Music Copyright Awards 2011 Best Record Producer Won
Kotler Awards 2017 Best Marketer Award Won
MBC Drama Awards 1987 Radio Excellence Award Won
MBC Music Festival 1976 Top 10 Male Rookie of the Year Won
1977 Top 10 Artist of Year Won
SBS Gayo Daejeon 1997 Best Planner Award Won
1998 Best Planner Award Won
2004 Producer of the Year Won
Seoul Cultural Arts Awards 2011 Best Popular Music Producer Won
Seoul Music Awards 1977 Best Record Producer Won
1997 Best Planner Award Won
South-East Music Chart Awards 2005 The Best Overseas Producer Award Won
Top Chinese Music The Annual Festival 2016 Best Producer of Asia Award Won

State and cultural honors

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Name of country or organization, year given, and name of honor
Country or organization Year Honor Ref.
Asia Society 2016 Asia Game Changer Award [55]
Château Mouton Rothschild 2009 Commanderie de Bontemps [56]
International Business Society 2007 Global Frontier Award [57]
2007 Global CEO Award Winning Company Case Presentation and Awards [57]
Korea-EU Industrial Cooperation Day 2011 Korea-EU Cooperation Award [58]
Korea Society Anniversary Gala 2007 Dinner Culture Award
Proud Korean Awards 2011 National Prestige Award [59]
Seoul International Forum 2016 Yeongsan Diplomat Award [60]
South Korea 2000 Good Deed Artist Prime Minister Commendation Award
2002 Korean Culture Content Exportation Awards in Music
2003 Korean Culture Content Exportation Awards in Music
2011 Eungwan Order of Cultural Merit (class 2nd) [61]
United States 2005 Certificate of Merit as Honorary Ambassador of Los Angeles [62]

Listicles

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Name of publisher, year listed, name of listicle, and placement
Publisher Year Listicle Placement Ref.
Billboard 2020 Impact List Placed [63]
E Daily 2016 Cultural Leaders of the Year Placed [64]
Herald Business 2011 The Power Leader of Popular Culture 1st [65]
Insight Korea 2018 The Best CEO by College Students 10th [66]
Executives Contributing to the National Economic Development 6th [67]
Executives Showing Best Leadership 4th [68]
Money Today StarNews 2007 Cultural Industry Player in the Entertainment Business 1st [69]
Sisa Journal[a] 2005 Most Influential Person Moving the Entertainment Industry Placed [74]
Sound 2011 Korean Pop Music Power 100 1st [75]
Variety 2017 Variety500 Placed [76]
2018 Placed
International Music Leader 19th [77]
2019 11th [78]
Variety500 Placed [76]
2020 Placed

Notes

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  1. ^ The Sisa Journal is one of the major weekly news magazines in Korea.[70] Established in 1989,[71] its annually conducted 'Who Moves Korea' survey determines the most influential figures in the country and highlights next-generation leaders of Korea.[72] The survey is conducted on a total of 1000 experts across 10 fields, including professors, journalists, politicians, businessmen, and cultural artists.[73]

References

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  3. ^ Hong, Grace Danbi (5 March 2013). "SM's Lee Soo Man Speaks at Seoul Natl. University as Alumni Speaker". mwave.interest.me. Archived from the original on 5 May 2016. Retrieved 18 April 2016.
  4. ^ a b c d Waitt, Hannah (14 July 2014). "The History of K-pop, Chapter 4: How Lee Soo Man's First Big Fail Resulted in Korea's Modern Pop Star System". MoonROK. Archived from the original on 24 October 2018. Retrieved 18 April 2016.
  5. ^ 사월과오월 "우린 70년대 청년 삶의 일부였죠" [April and May: "We were a part of young people's lives in the 70s."]. Yonhap News Agency (in Korean). 29 November 2011. Archived from the original on 30 May 2023. Retrieved 13 July 2023.
  6. ^ Lee, Pil-jae; Cho, Deuk-jin (1 December 2011). 올해의 인물 K–POP 챔프 이수만 [Person of the Year K-pop Champion Lee Soo-man]. Forbes Korea (in Korean). Archived from the original on 30 May 2023. Retrieved 13 July 2023 – via Joins.
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  41. ^ Park, Chang-wook (22 May 2003). 이수만씨 귀국, 검찰 조사 [Lee Soo-man's return to Korea, prosecution investigation]. Yonhap News Agency (in Korean). Archived from the original on 21 July 2023. Retrieved 13 July 2023 – via Naver.
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  43. ^ 이수만·서세원씨 등 오늘 구속 수감 [Lee Soo-man, Seo Se-won, etc. arrested today]. SBS (in Korean). 9 October 2003. Archived from the original on 20 July 2023. Retrieved 13 July 2023 – via Naver.
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