According to Korean media, on the 27th, the Korean Tax Tribunal ruled that Lee Soo-man (李秀滿) must pay 20 billion won in taxes. Previously, SM Entertainment made an unreasonable request to the tax court, but it was ultimately denied. From 2015 over a period of five years, SM Entertainment paid Lee Soo-man more than 60 billion won, which is equivalent to 3.19% of SM Entertainment’s own capital in 2019.
Lee Soo-man is the founder of the Korean entertainment company SM, which hosts many well-known artists and groups. Under his management model, artists undergo strict training and selection, and only the most talented debut. This model has allowed SM to produce a large number of top artists and groups, making Lee Soo-man a tycoon in the Korean entertainment industry.
The taxes Lee Soo-man was ordered to pay reportedly stem from his overseas income. According to Korean law, overseas income must be declared and taxed in Korea. Lee Soo-man was accused of failing to declare and pay taxes as required, leading to the substantial tax levy.
