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| ▲This photo, provided by SM Entertainment shows, photo of executive producer Lee Soo-man. (PHOTO NOT FOR SALE) (Yonhap) |
SEOUL September 16 (Yonhap) -- Align Partners Capital Management welcomed SM Entertainment’s action to consider the early termination of the producing contract between Like Planning and SM Entertainment on Friday.
In total, Align Partners Capital Management holds 1.1 percent of SM Entertainments shares, including those stocks held by related party.
Lee Soo-man was accused of intentionally signing a producing contract between his personal company Like planning and SM Entertainment by provided certain amount of royalty based on SM Entertainment’s operation profit.
Align Partners Capital Management sent out a statement including “We respect executive producer Lee Soo-man’s decision to terminate the contract between Like Planning and SM Entertainment earlier than the actual contractual period.”
“Transformation in structure of SM Entertainment’s current hierarchy where a single executive lies above everyone, to a self-sustaining developmental environment where other producers can have an equal opportunity was very impressive.” continued Align Partners Captial Management.
On September 15, SM Entertainment revealed a statement stating “Like Planning sent us a suggesting statement including the early termination of producing contract, therefore we are undergoing a thorough consideration,” adding “If the SM Entertainment’s board agrees upon the early termination of the contract, we will not hesitate to release the statement.”
SM Entertainment’s statement regarding the problem related to Like Planning is an answer to shareholder letter sent by Align Partners Capital Management throughout the shareholder’s meeting held in August.
As a reply, Align Partners Capital Management requested board of SM Entertainment to send out the statement related to the early termination of producing contract in between Like Planning and the SM Entertainment no later than September 30.
In case the SM Entertainment fails to meet their side of the bargain, Align Partners Capital Management will be postponing their plans for protective measures for the shareholders until September 30.
Align Partners Capital Management continuously raised the accusation of SM Entertainment tainting the value of shareholders by providing yearly loyalty of billions of won to Like Planning.
Continuing on with the situation, Align Partners Capital Management was supported by the minor shareholders. Throughout the general shareholder’s meeting, auditor Kwak Jun-ho nominated by the Align Partners Capital Management was elected.
Throughout the first half of 2022, SM Entertainment paid Like Planning over 11.4 billion won under the name of music production loyalty. 11.4 billion won is about 29.6 percent of SM Entertainment’s operational profit of first half of 2022, 38.6 billion won.
(This article is translated from Korean to English by Joonha Yoo)
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