Impostors who pretended to be SM Entertainment CEO obtained maximum sentences after falsifying documents and obtaining a deposit of several hundred million won (about $80,000 is one hundred million won), asserting that EXO would play at an event.
It was disclosed June 18 by Ryu Hee Hyun of the South District Court of Seoul that Kim had been condemned to two months in prison and Lee to one year for fraud, deliberate faking of confidential data, and the use of the falsified documents.
Kim and Lee appeared as CEO of SM Entertainment in September 2017. They drafted a fake agreement for the CEO of an events management organization (later alluded to as "A").
In November of that same year, they implied that EXO would play in Bangkok, Thailand. They also used the corporate seal of SM Entertainment and earned a refund amounting to 280 million won (about $230,900).
Kim argued throughout the trial, "We didn't fake the contract," while Lee said, "I just helped in Kim's crime, I didn't manipulate 'A.'"
In August 2019, Kim was confirmed to have obtained four-month imprisonment and suspension for two years' probation. The court simply doubted Lee's credibility at this point, saying, "When you were interrogated at the investigative agency, you've already admitted to the crime."
The judge also explained the reason for Kim's sentence, saying, "As the level of damage is nearly 300 million won (around $247,400), the complainant is facing economic turmoil, and only 18.5 million won (around $15,300) is retrieved. The seriousness of the incident is very severe, with the proof that you forged the files that were used for fraud."
About Lee, the judge said, "They possess a background of being prosecuted for fraud in the past and are now at a disadvantage because they are unable to pay 'A' for losses entirely. They have brought back 47 million won (around $38,800) nevertheless, and are making more effort."
SM Entertainment is the largest media and entertainment company in South Korea, established by Lee Soo Man in 1995. The business has created and made several K-pop stars famous with massive international fanbases.
SM is considered to have guided the international K-pop trend and Hallyu's musical side, also known as the "Korean Wave," with its iconic hitmakers, such as H.O.T. and BoA.
Lee Soo Man withdrew as the CEO in February 2010 after two decades in the Board of Directors, with the intention of "focusing more attention on SM's international sector, new venture, and artist's growth."
KMP Holdings formed a strategic partnership with SM Entertainment, YG Entertainment, JYP Entertainment, Star Empire, Media Line, CAN Entertainment, and the Music Factory Entertainment in March of 2010.
In May, SM officially confirmed its largest total operating income in the first quarter, KR average of 10.4 billion up 471 percent on the very same quarter the preceding SM period, and the latest SM release, "Mr. Simple."
In April 2011, the United Asia Management, a strategic partnership company focused on progressing Asian music throughout the globe, was founded by SM Entertainment, YG Entertainment, JYP Entertainment, KeyEast, AMENT, and Star J Entertainment.
SM decided to join TrueVisions in August to create a global joint venture, SMTrue.
