SM Entertainment responds to reports on Lee Soo Man's suspicious internal transactions

On April 19,Asia Economy Daily exclusively reportedthat Lee Soo Man paidLike Planning- his personal company in charge of producing SM artists' albums - over 10 billion KRW (9.4 million USD) in the past two years.

According to the report, SM Entertainment's payment to Like Planning increased each year. In 2014, it started off with 7.5 billion KRW (7 million USD) and the amount has surpassed 10 billion KRW as of now.

In addition, the payment regulations have changed in 2015. Like Planning is now able to take a royalty of up to 6% of the total sales, instead of taking up to 15% from only album sales.

The transactions from SM Entertainment to Like Planning was found to be suspicious, as Lee Soo Man seemed to be using the internal transaction for his personal benefit.