Hive Refutes CEO Lee's Claim on the 16th
"Demanded Contract Termination After Detailed CTP Review"
[Asia Economy Reporter Kim Heeyoon] “At the time of signing the stock purchase agreement with former SM Chief Producer Lee Soo-man, the company did not receive any information that Lee owned a company called CTP, nor any details about contracts between SM and CTP.”
On the 16th, HYBE issued a rebuttal regarding the allegations made by Lee Sung-soo, co-CEO of SM Entertainment, against former Chief Producer Lee Soo-man.
In a statement released that day, HYBE explained that ▲ Lee Soo-man can conduct producing work overseas on a personal level unrelated to SM, and the passage of three years does not imply his return to SM ▲ The company has not been informed about the overseas personal company CT Planning Limited (CTP) related to Lee Soo-man, and according to the stock purchase agreement, any matters related to SM will be terminated ▲ The company will not be involved if Lee Soo-man’s personal activities have no connection to SM, and it has not received any details regarding the ESG activities promoted by former Chief Producer Lee Soo-man.
In response to allegations by CEO Lee that HYBE condoned or overlooked Lee Soo-man’s offshore tax evasion through CTP, HYBE emphasized, “At the time of signing the stock purchase agreement with Lee Soo-man, we were not informed that he owned a company called CTP, nor that CTP had any contracts with SM.”
Furthermore, HYBE disclosed contract clauses, stating, “The stock purchase agreement with Lee Soo-man confirms that there is no transactional relationship between SM and Lee Soo-man, and no royalties arise after the contract signing. It also includes provisions that any existing contracts must be fully resolved.”
As controversy over Lee Soo-man’s overseas personal company CTP escalated, HYBE announced plans to conduct a detailed review of CTP. HYBE added, “If it is confirmed that this corporation (CTP) has indeed entered into problematic contracts with SM as claimed by CEO Lee Sung-soo, we will also investigate who within SM approved such contracts between the corporation and SM.”
Regarding the tree planting, sustainability, and ESG campaigns that CEO Lee criticized as being conducted for Lee Soo-man’s private profit-seeking, including real estate business, HYBE stated, “If any activities or campaigns related to Lee Soo-man are not directly connected to SM, we have no reason to be involved,” and drew a clear line by saying, “We have not received detailed information about the ESG-related campaigns.”
HYBE continued, “Our company is also strengthening ESG-related policies, and if the campaigns promoted by former Chief Producer Lee are linked to ESG activities, we have agreed to cooperate. However, such cooperation requires prior specific mutual consultation on the scope of the ESG activities the campaigns intend to pursue, so participation will be decided based on the details.” This hinted at the possibility of future cooperation.
Regarding the phone call between CEO Lee and HYBE Chairman Bang Si-hyuk after the stock purchase agreement with former Chief Producer Lee was signed, HYBE explained, “Around 1:20 a.m. on the 10th, we were contacted by the other party requesting a call with Chairman Bang Si-hyuk, and accordingly, a call took place between Chairman Bang Si-hyuk and CEO Lee Sung-soo in the early morning.”
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