Lee Soo Man, the general producer of SM Entertainment, was accused of tax evasion following purchasing U.S. real estate through Hong Kong's paper company. As a response, SM Entertainment released its official statement denying the allegations. #LeeSooMan #SMEntertainment #taxevasion
On October 4, SM Entertainment gave their official position regarding the K-pop agency's general producer Lee Soo-man tax evasion accusation.
The Reason SM Entertainment Producer Lee Soo Man Was Accused of Tax Evasion
Prior to the controversy, the International Consortium of Investigative Journalists, a Washington DC-based international network wrote an exposé – which reveals the secret wealth and dealings involving world-renown leaders, politicians, and billionaires through "Pandora Papers."
This paper contains leaked files and data exposing tax haven secrecy. On the same day, a non-profit Korean media outlet, Newstapa – which is a member of the Washington DC-based international network accused Lee Soo Man of purchasing a U.S. real estate through Hong Kong's Paper Company to avoid restrictions/limits on overseas real estate purchases, adding that the producer actually controls Hong Kong's paper companies.
Also Read: National Tax Service Conducts Investigation against SM Entertainment + Here's the Agency's Response
SM Entertainment Denies Accusation to Lee Soo Man through an Official Statement
On the 4th, Lee Soo Man denied accusations through SM Entertainment, a company that he founded.
According to the general producer through the agency, "Newstapa reported on October 4, that Lee Soo Man purchased U.S. real estate through Hong Kong's Paper Company to avoid restrictions on overseas real estate purchases."
The statement also criticized Newstapa for accusing Lee Soo Man of secretly amassing wealth overseas – through the suspicious Hong Kong-based paper companies.
SM then explained that the companies were actually property by Lee Soo Man's father, James Heejae Lee, and was built using funds from Korea.
"Lee Soo Man's father's property in Hong Kong was then inherited by his wife, Grace Kyonghyeon Lee, and eventually donated to the JG Christian Charity Foundation (JG Christian Charity Foundation) according to his father's will, and the donor is Lee Soo Man's mother."
The agency also attested that the companies were built legally, adding, "All documents and materials related to this were also viewed and provided to Newstapa reporters," implying that they already provided valid evidence to support that Lee Soo Man is not involved in any tax evasion.
SM Entertainment continued, "Nevertheless, we deeply regret that the article was reported as if the Hong Kong-based corporations were illegally established, operated, or illegally used to purchase overseas real estate, and Lee Soo Man, SM's general producer was mentioned as if he was behind it."
Lastly, they warned the reporters for defamation or any future groundless suspicions saying, "SM Entertainment and general producer Lee Soo Man believe that Newstapa's groundless suspicion has seriously damaged their reputation, and say they will take all possible legal action against Newstapa and reporters."
[For the full version of SM Entertainment's official statement, read HERE]
Read More: SM Entertainment Ordered To Pay Government $10 Million: Label Pushes Back Against Tax Evasion Allegations
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Written by Eunice Dawson
