Lee Soo Man resigns from SM Entertainment

Yes, as many of you have already heard and read, Mr. Lee Soo Man has apparently called it quits... but not from SM Entertainment. The title he simply let go of was that of a "Company Registered Director".

So as confusing as it may seem, Lee Soo Man resigning from SM Entertainment does not necessarily mean that he no longer has any say in the decisions regarding SM Entertainment, its management, and its artists. If anything, he just acquired more "voting power" as his shares have increased by 1.5%, bring his total share up to 28.3% (we won't be going into detail as to how he acquired the 1.5% as that involves another artist altogether).

So how does that influence decisions regarding SM artists, particularly our "favorite" 9-girl group?

A lot.

For one thing, as a major shareholder, he has all the right to intercede on any decision regarding the company's assests.

Business 101: "Although directors and officers of a company are bound by legal and ethical duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other. Shareholders in a corporation are shielded from personal liability for the debts and obligations of the company. However, shareholders can lose their investments should the corporation fail."

So even if he is no longer connected with SM Entertainment management, he is still taking over majority of SME's shares which puts him in a win-win situation, especially with what is happening now with the company.

We all know SME's stocks have been dropping for quite sometime now. It was only recently aggravated during the issue with DBSK. But even before that, there has already been a sharp decline in the company's assets which can actually be traced to SNSD.


Still not convinced? You can also check SME's financial statement records for the past 5 years. It's available for public viewing: HERE

Bottomline, Lee Soo Man is no longer "Director", but he is now "Major Stockholder". Weighing the two in, a stockholder has more votes. And since we know who he prefers to spend money over, then we can expect to see more of SNSD.. that or SME goes bankrupt, whichever comes first.


Sources:
News link
SME stocks

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Thanks to bbling and jaejae for the help~

SM sucks... that's all I can say..
they won't bother to bring back all of their talented groups,
& the company is wasting money on shiitdae imagine 3 mega comebacks in Korea
while Super Junior has one last year, DBSK has one too with Mirotic, BoA none her last korean album was ages ago,CSJH wtf for their 1st album they waited for two freaking long years to be released & now SM shoved this 4 talented ladies for 3 consecutive years, & Liyin she has korean fans too she need a Kpop comeback.. & where is fx now a days? I haven't seen them & ShiNee too. SM has shiitdae out alone on stage conquering the sex-starved ajusshis.

remember that announcement from sm that they are having a big deficit?!
it says there that sm's expenses for big groups like super junior and snsd are too high...

if they cut back on their investments on snsd and invest it on someone else like BoA (who is dearly missed in korea) or CSJH or DBSK (though we all know that they can't proceed with group activities in korea as of now) or f(x) (the group has soooo much potential...but SM gives them crappy songs) or SHINee (shinee is slowly but surely becoming the next dbsk) i bet they wouldn't have as much deficit as they have now...

i'm fine with them spending a lot of money with SJ because we all know how big SJ is all over asia...from albums, to concerts, to dvds, merchandises....everything SJ sells.,...

but with SNSD, yeah let's be honest they have a big fan base in korea...(mostly old stinky men though...sucks to be snsd)...and yeah they had their first solo concert...but they didn't even fill the venue...and now they would be having an asia tour...which we all know would be a big FAIL...sm would be wasting so much resources for this asian tour it's ridiculous...



i don't really have a comment with regards to LSM...
i used to admire how he produces artists with real talent and how he handles his markets...
but now.....LSM and SM Ent. has changed...and that started when SNSD was formed....=/

buahahaha..LSM you're so screwed and you expect us to believe that you'd resigned and therefore have nothing to do with SME anymore!!!Just because SME is going down the drain now of course we expect you to save your ass first.Being the biggest shareholder but not the CEO means that LSM isn't liable for any of the financial difficulties.

Being the biggest shareholder also means LSM will still have the biggest say in which artist SME has to promote.

Knowing LSM, it would probably, no make that most definitely be SNShitD. All the money will be going to the 9 Plasticzillas and we can say buh-bye to the talented CSJH, LiYin etc.

^ My thoughts exactly
If it was a female CEO, she probably wouldn't always promote SNSD as much. Give a chance to the other groups.
I read this article on AKP, really shocked me. But all the same, i can't completely bad mouth LSM because he did create some awesome groups.
Can't really say much now, this story needs to be updated, just waiting for them to give info about the new CEO and what will happen to the groups. >_>

The fugly old man deserves it...seriously, I hate this person more than SNSD!! he's the main reason why SNSD exists & DBSK/SJ/Others are getting tortured!!

THIS IS SNSD'S END!! I bet they are crying now or maybe sleeping with Kim YoungMin to keep them in the industry!!

the truth is that old lee soo man is really look alike his niece SOONY with that eyes and joker smile...MUAHAHAH..

I don't know tat's a good thing or not. But with all the money he has, IF he spent his money to 9-bunch-of-platic-girls, that's definetely a baaad thing...

i wonder, is he even get any merit from them??

I don't know.. if.. it's a good thing or a bad thing..
I'm actually pretty confuse LOL...
I mean like what will happen to the groups..
and yada yada yada.. o.o!?

I'm confuse.. but that means SNSD is going to dessapear? No? I don't know..

This blows! He knows exactly what he's doing! He's gonna step down when all of this is going down. What a freakin coward. Now that he's stepped down, maybe there will be some changes. Oh! And to top it all off, SME and other companies are getting investigated. I think he seen this coming. He really did.

Oh god, like, seriously.
Does that old tart seriously think we're fools to believe he has nothing to do with SME anymore.
I mean, just from the fact that he named the company after himself shows us how much of a narcisist he is, so yuh. We're not that naive as to think he'll step down. if anything, we STANDers know with perfect sense that whatever he chooses to do, will most certainly end up with him benefitting more with the only thing he's ever genuinely loved--

MONEY.
'nuff said.

Thanx for the article though, Bee. extremely articulate.

-i've been on quiet anti mode for the longest time. sigh~ i miss this place...-


Cheers!

Uhm I'm a little confused. You said that Soo Man is no longer the chairman of SME well i read he was never the CEO just a producer which is why so many of the artists were thanking soo man for his teachings
can someone explain this to me??

I think it is bad news. Very bad news. It means that the dear Sonny’s uncle would be controlling everything anyway… as always.
And of course supporting his nephew I mean, his lovely little niece… X___X
He will be over-marketing those sluts (perhaps even more, to make –keep making- miserable the life of every sane person), and ignoring other artists, etc.
What a crap.

hatianhime wrote:Uhm I'm a little confused. You said that Soo Man is no longer the chairman of SME well i read he was never the CEO just a producer which is why so many of the artists were thanking soo man for his teachings
can someone explain this to me??

Hi,
I'm not very well informed, but what I know is that he is the main figure in that company. The letters "SM" were because of his name Soo Man, although I have understood that since from some time now, they changed to something else.
Now "SM" means something else. But inicially, as far as I know, was because of his name.
Anyway, he is the main figure, chairman or CEO or whatever, he has been in control, and it seems like he is still in control and he will be.


As long as that company exist, it seems like he will be in control.

antigolfasgeneration wrote:I think it is bad news. Very bad news. It means that the dear Sonny’s uncle would be controlling everything anyway… as always.
And of course supporting his nephew I mean, his lovely little niece… X___X
He will be over-marketing those sluts (perhaps even more, to make –keep making- miserable the life of every sane person), and ignoring other artists, etc.
What a crap.

hatianhime wrote:Uhm I'm a little confused. You said that Soo Man is no longer the chairman of SME well i read he was never the CEO just a producer which is why so many of the artists were thanking soo man for his teachings
can someone explain this to me??

Hi,
I'm not very well informed, but what I know is that he is the main figure in that company. The letters "SM" were because of his name Soo Man, although I have understood that since from some time now, they changed to something else.
Now "SM" means something else. But inicially, as far as I know, was because of his name.
Anyway, he is the main figure, chairman or CEO or whatever, he has been in control, and it seems like he is still in control and he will be.


As long as that company exist, it seems like he will be in control.

OHHH cause what I heard was it actually stood for Star Museum Entertainment or something like that...I think thats what they changed it

Yes, they changed to "star -something".