Kakao Conducts Forensic Audit To Remove SM Entertainment Execs Who Fired Lee Soo Man.

After acquiring SM Entertainment almost 10 months ago, Kakao Corporation plans to reform its administration.

The current leadership team at SM Entertainment, which partnered with a hedge fund, Align Partners, and presented an advanced governance structure, includes important players who deposed founder and former executive producer Lee Soo Man.

Lee Sung Soo, former CEO and current CAO, Jang Cheol Hyuk, CEO, and Tak Young Jun and Park Jun Hyung, CCOs, are among these targets for dismissal. Despite promoting “advanced management” and a “transparent governance structure,” they are being fired for opaque management.

They made mysterious investments in personal related companies without Kakao’s approval, according to reports. Kakao believes the existing management team is unsustainable. The legal firm Kim & Chang helped the company begin a forensic audit of the individuals this month under Article 21 of the External Audit Act.

Kakao’s audit and fact-finding revealed other concerns besides the transactions.

Netizen responses:

“Lol, Lee Sung Soo is really going downhill after expressing his dislike towards HYBE”
“Not the fault of the artists…”
“No….SM cannot go downhill for the sake of my artists”
“I’m not sure if Kakao is all clean though”
“Ugh. Kakao and SM are identical”
“What are they doing and why are they wasting their time lol”
I anticipated this. Lee Sung Soo with SM power utilized viral marketing to get fortune and popularity. “I hope they investigate and return what he gained.” “The ultimate portrait of those who ousted Lee Soo Man……”

“To me, I found it funny even then that people thought Kakao would be any different from Lee Soo Man himself while trash talking the old CEO”
“I didn’t understand then why people were talking about how Lee Sung Soo was something like saving grace for SM by ousting Lee Soo Man but I now think that that could have been a viral marketing from Lee Sung Soo”

“SM is looking more and more shabby…”

“Take my artists out of this company now”

As soon as Lee Soo Man left, I knew SM would weaken. It’s unclear why the grandpa was thrown out, as he likely tried to adapt to the situation. It’s also interesting that SM personnel openly criticized Lee Soo Man, who is now being replaced by Kakao.

“It has gotten too easy to target SM Entertainment after Lee Soo Man…”
“I wonder what would have happened if SM went to HYBE instead”
“SM’s situation is worse now after Lee Soo Man…”
“I think the SM personnel tried to be a bit too greedy”

“HYBE should have taken SM”