This article is from June of 2003. It has been translated only recently, however. Read on for the charges of Lee Soo Man and how he was placed on the Interpol Watch List… only to be released in a day by Korean authorities. It is particularly distressing how Korea simply replaced its chief prosecutor who was pursuing this case.
Sooman Lee, Sewon Seo
Key Figures in Investigation on Corruption in Entertainment Industry Returned after Fleeing
Sooman Lee and Sewon Seo, key suspects in the investigation on corruption in the entertainment business, who brought the investigation to a standstill when they fled the country and were subsequently placed on Interpol’s Wanted List, finally returned to Korea. Thus, people expected that the case, which had been suspended for six month, would resume, but the result came to nothing. Sewon Seo had delayed a summons of the Prosecutor’s Office on grounds of poor health, and Sooman Lee, who was summoned right after his re-entry, was allowed to go back home in a day. Although the Public Prosecutor, for now, states that his office will decide whether or not to issue a warrant for Sooman Lee and Sewon Seo’s arrest after going through the enormous amount of data received and further investigation, the case seems to be closed without any further pursuit.
Why request a place on Interpol’s Wanted list if they will release suspects in a day?
On the 22nd of last month, Sooman Lee, the principal shareholder of SM Entertainment, entered Korea quite confidently surrounded by ten bodyguards after being arrested at Incheon International Airport. This quite contrasted with Sewon Seo’s entry, carried by gurney as he was trying to hide his face. Sooman Lee headed to the Seoul District Public Prosecutors’ Office after asserting his innocence. One day after the entry of Sooman Lee, the serious crime squad of the Seoul District Public Prosecutor’s Office (HongIl Kim, chief prosecutor) announced that for now they would send Sooman Lee home, and then will decide whether or not to issue an arrest warrant for Sooman Lee after conducting further investigation. The Public Prosecutor’s explanation for sending Sooman Lee home was that, because SM’s lawyer has completely denied the suspicion of Sooman Lee by providing enormous amount of data, such as receipts, the Prosecution had to do more corroborative investigation. The public cannot understand how Sooman Lee could be sent home in a day after being wanted by Interpol while he had long been escaped in the US. The investigation of the entertainment business’s corruption that heated up the public last year solves nothing and just leaves people with many suspicions. In the beginning, the investigation confidently planned to go through the whole entertainment business’s corruption, embezzlement, stock price manipulation, an influx of funds from organized criminal gangs, an illegal capital for public relations, and sexual bribes. However, the outcome is inadequate. While the Prosecutor’s Office went through the humiliation of having the chief prosecutor replaced in the middle of the investigation, they stated that if Sooman Lee and Sewon Seo would return to Korea, the Prosecutor’s Office can achieve tangible results. In August of last year, the Prosecution dismissed an indictment of Sooman Lee, and this year, 14th January, Lee was placed on Interpol’s Wanted list and the Prosecution revealed the strong will to investigate this case. However, Sooman Lee’s returning to Korea ended up with just a day of investigation.
Many suspicions so far, and Sooman Lee’s insistence
At the time of last year’s investigation, the charges against Lee are listed below.
First of all, he was suspected of profit-taking in KOSDAQ by adopting an expedient. By this expedient, the prosecution assumed that Lee pulled in approximately $13,000,000 by stock of SM entertainment. In addition to Sooman Lee’s suspicion of earning ten million of margin profit from the merger with 4M Entertainment’s training agency which costs $50,000, Lee was also under suspicion of taking $3,000,000 of cash income by selling stock of KOSDAQ in May of last year.
However, the prosecution had been more focused on the investigation on the embezzlement which occurred in the company. Especially, in August of 1999, the Public Prosecutor stated that Lee had embezzled $1,100,000 in the form of foreign payment of capital which was embezzled in the process to increase capital. The Prosecution said they were investigating the use of the $1,100,000.
The problem is that while Lee stayed abroad, Kyeongwook Kim, an executive of SM entertainment, was indicted for those crimes in Lee’s stead, but he was acquitted to part of those crimes. Thus, the indictment on Lee could only become more complicated.
Last year, the investigation on entertainment corruption was launched based on allegations of “PR fees”(T/N: Euphemism for bribes, including those of a sexual nature). The whole investigation was started by one NGO group, Solidarity Groups for the Reform of Popular Music (i.e. DKR), which reported the practice of entertainment companies exchanging “PR fees”. After that report, the Prosecutor’s Office said that they would investigate the PR fees related to SM entertainment. However, as the investigation proceeded, the issue of PR fees gradually disappeared, and the Prosecution did not even mention PR fees when they recently summoned Lee.
Last year, during the investigation, our newspaper revealed a list of SM Entertainment’s stockholders. In the list, financial firm _____’s Lee chairman had 6,000 shares, Pastor Choi had 40,200 shares, and other entertainers and representatives of broadcast stations were also on the list. For this reason, based on the stockholders’ list, Prosecutors suspected high instances of bribery in the form of PR fees between the entertainment world and the political world.
The investigation related PR fees make a slow progress
The most unsatisfying part about this investigation from the point of view of the entertainment industry is the loss of focus on PR fees. This bribery issue was the most important part in last year’s investigation, and everyone had expected that this investigation of the entertainment industry could be a turning point for reforming the practice of PR fees which had been the reasonable custom so far. However, the prosecution actually failed to disclose the true nature of this bribery. Therefore, when Sooman Lee, and Sewon Seo, who were the key suspects of the investigation, returned to Korea, people expected the Prosecutor’s Office to proceed into the inquiry on PR fees. However, the actual prosecution’s investigation focused on the manipulation of stock or embezzlement. These parts could be the tangible accomplishments for the Prosecutor’s Office, but these would not help the basic structural reform of the entertainment business world. Cultural Action and DKR, the non-government organizations which did demonstration against Sooman Lee, insisted that “the Prosecution’s investigation is essential to construct a transparent structure for the entertainment industry”. The organizations also asserted that “we express our concern over the slow progress of the investigation that had been proceeding since last year.” Especially about the part on PR fees, the Chairman of DKR stated that “the slow process of the investigation is a shame. It appears that the investigators did not even consider our report” (related reference in his interview)
Lee has denied all suspicions put on him. He explained about the embezzlement in the company that “I embezzle nothing. I already submitted related data to the prosecution last week. He also asserted his innocence of price-taking by selling stock saying that “How can I make the profit even when I did not sell the stock? There was no advantage of selling stock because the stock price had dropped at the time.” Seong Il Baek, a lawyer of Sooman Lee, already passed an enormous amount of data to the Prosecution, and he still keeps providing additional data.
Continue to suspect Lee’s capability to be well informed
In the contrast to the prosecution’s attitude near the start of the investigation, they sent Sooman Lee home in one day as Lee submitted related data.
Therefore, the prosecution is being denounced by the public for their incapability to make a clear and obvious result of the investigation. As a result, the prosecution suddenly became the target of denouncement for making an abrupt decision before they made an agenda; the abrupt decisions such as dismissal of the indictment, requesting the assistance of Interpol, and nullifying Lee’s passport. Besides, between reporters, who cover the process of questioning Sooman Lee, there were already some suspicions that the Public Prosecutor was going to finish the case without any results. The Prosecution’s will to investigate further seemed weak. In this whole process, there is some suspicion about Lee’s personal connections and his capability of gathering information.
Because Lee went to Kyung Bok high school and Seoul National University where many graduates are now influential legal/judicial circles now, people are speculating that Lee received information secretly from his alumnus right before leaving Korea. People also assume that there could be some pressure from Lee’s alumnus to finish the investigation on Lee in just one day.
About this, Dong Yeon Lee, a chairman of DKR, said that “a plea written by Lee’s alumnus appears to have been quite effective.”
There are three possibilities in the entertainment world now. First, the investigation itself was lacking in substance. Second, the Prosecutor’s Office was inadequate to dig up the truth. Third, there could be external pressure from third parties to help Sooman Lee out of the investigation.
So far, this investigation summoned the largest number of related persons and proceeded in the widest scope. However, the investigation lasted for one year seems ineffective to reform the wrong custom such as PR fees in the entertainment world.
Minsup Shin reporter <ksimany@ilyosisa.co.kr>
Source: ilyosisa
Translation Credit: Leperenands
Shared by: JYJ3
WOW. i never knew about this. I know this was quite a few years ago, but damn! and this just makes his character even more shady!
What exactly is Lee Soo Man’s relationship with the Korean govt to have the prosecutor replaced? It makes me wonder what is really behind everything now. Is he just able to bribe people to help him because of his fortune or is there some other connection like this article suggests, that he has close friends in high places? I have been wondering lately what the real story is about the entertainment media blocking JYJ. It seems more than just being intimidated by SME’s power in the entertainment world. What is it really? Are people in the Korean govt that oversee the TV broadcasters the real ones forcing them to block JYJ?
This article just leaves even more unanswered questions for me. Two main questions are in my head. How much power does LSM have? What kind of company is SME? I fell there is like a bunch of secrets behind that company. I’m so glad JYJ and anybody else left a shady company called SME.
Also to the rest of the idols in SME i hope you are released from the grasp of SME’s dirty hands! EXCEPT FOR THE PEOPLE WHO BASHED JYJ =P
Eew what disgusting SOBs these crooks are!
That shows that AVEX is wrong about CJES and they should stop blocking JYJ!!! Who is the gangster now!!! I am from Mexico where the government is corrupt, I did not expect that a country like Korea would be this corrupt and shady. They should fix this because if this continues and more people knows about it, it could affect Koreas relationships with other countries. Just my opinion.
After reading that…My face is like O_o????
(face palm). Why did they just made the case
cold…if it was not that important why even conjure it up?
Stuff like that makes me think his hand in the
capital system of Korea is deeper than just being the founder of SM.
Prosecutor being replaced and what not, him going back home
in one day, him FLEEING…you know what they say about feelers
if you didn’t do anything wrong, why are you running away?
who is mafia now?????
this is old news to me. and worse thing is that recorded criminal and court history of sme’s headers, especially lee has been longing since 1996 till now, as far as i know.
it appears to me that general public in korean knows ’bout this pretty clearly (a bit more shocking news to young kpop fans outside of korea is quite a number of older-generation people call sme’s idols ‘elite/high-quality prostitute volunteers’) and most of older generations (like people in 30s and older) hate lee soo man for a very solid reason, but well, that’s just how korean runs its own history and life.
just hope changes will be in better direction for future.
Yikes.
and just in case some fans here don’t believe it’s that bad, here is a current saying from a korean fan that i found out on twitter (for more recent update and saying from korea, for further confirm of what i learn ’bout korea so far):
“So, many are wondering about the credibility and corruption of Seoul Prosecuter’s Office after reading translated article of LSM. You may, then, let your imagination take a wing as much as you can without going astray much.
No sensible citizens in Korea regard PO with any respect. `Doggy (Prose)cuters` is commonly used term for PO on internet, and it has long been established by netizens that Doggy Trinity (Almighty cartel of established power) = Hannara Party (Conservative party) + ChoJungDong Newspaper + Prosecuter`s Office.
The previous President Rho(2002 ~ 2007) encouraged the reformation of PO (which was pretty much like hitting a rock with eggs), which eventually led himself to be a victim of political murder by the cartel of Doggy Trinity 2 years ago. ” credit: @LongLiveJYJ
If the Korean Citizens dont like Lee Soo Man, I wonder how they felt when Homin thanked him????
regret to inform you that from many sources that i obtain info ’bout kpop culture, general public appears to side eyes to all ‘thanks to’ note to lee soo man (and this includes dbsk’s ‘thanks to’ notes too, whether it’s 5 or 2 members). because like it or not, ALL sme’s idol groups and/or solo idols (singer, model, actor/actress or producer) ALWAYS include ‘thanks to great teacher/father lee soo man’ note in their release. it’s a marketing tactic, just like jyp always remember to include ‘jyp’ phrase in their hit songs LOL (just that sme’s ‘thanks to’ tactic is more of plainly dumb publicity to mass public’s liking – probably because it sends a message that ‘see, a pretty face with idol-clean history says thank-you to me, so i’m a good person LOOL)
Someone should inform Avex and see if they will be consistent with SME and Cjes
that was my exact thought. ohhhh the irony.
A+++
Well said!
well, avex and maxsuura got their fair share of shaddy past that not a few people knows. so it’s like a lid calls a kettle black, to me at least, for c-jes – avex – sme problem
i’m a bit more taken back when realizing many fans actually believe in ‘mafia thing’ from avex’s open mouth without checking avex’s back
my jaw drop to the floor reading this “…sme’s idols ‘elite/high-quality prostitute volunteers’” — Lee Soo Man may you rot in hell.
Lee So Man is a corrupted man. He’s bringing corruption into the entertainment business. That man makes so much money but only a TINY portion goes to the artists. He’s a greedy man no different from a dictator. How can he be a CEO and be sooo fuckin’ greedY? Like isnt he rich enough already? Does he want to bring the money with him to his goddamn grave?? This man should be shipped to North Korea and get bombed.
actually i ve been thinking bout this since the day i found out about Jae and their lawsuit.it is not unusual for company that big to have skeletons in the closet.we have that here too.i guess when people gets older,it is just hard to change their attitude.i mean they ve been doing the wrong things since they re young,so why should they stop now.but i still feel uncomfortable with what happens to all those pretty faces that ve been working under them.
i am just glad our JYJ are now free from SME, at least they are not in the same boat. Wow i have no idea about this thing. We knew how bad lee soo man is but this.. this… beyond my imagination. he is truly a demon.
This is a disgrace. Corruption to the top. Shame all around. To put these men in the Interpol’s Wanted List, to end releasing them in one day as if they were innocent nuns; it has no name. ¡OUTRAGEOUS! They must pay for their crimes. no more “White gloves thiefs”, who disguise themselves as important bussiness men, when they really are sewer rats. Who use their “Important friends” to make them be released. South Korea must awake from the foolish dreams of the ones who have government’s influences. ¡None of this must be allowed to happen anymore! ¡NEVER!
Perhaps, to refresh our memory, let us take a look at this article again. Someone here posted the following link before (I remember it’s NingK). Keep in mind guys, this was almost 10 years ago T__T
http://www.time.com/time/world/article/0,8599,2056115,00.html
I think what’s sad is that this WAS posted ten years ago. It was written a year after H.O.T.’s break-up, right when they and their fans were going through almost exactly the same things that JYJ is going through now. The similarities are almost frightening.
The name of the exact people involved may have changed, but the fact that the entertainment industry is still plagued by the exact same problems as a decade ago… is sad…
Right! Even sadder is the fact that what the media knows of the whole thing is probably just the tip of the iceberg. Aside from sucking them dry, Lord knows what other degrading things they have done to their idols in exchange for such power and backing.
i’m glad our boys can get out from those hell company……i always wondering how can someone who has bad background like these can became CEO ? now who is the real mafia ?? i really wish our boys can win this battle perfectly and i’m sorry if i wish a bad thing and became so sadist (bow) but i really wish that hell company with their colonies really fall down or get bankrupt at the same time…….when i said fall down it’s mean not only became bankrupt but also get destroyed into dust coz earthquake or something like that along with those corrupt and greedy people
@Miaw, ¡RIGHT!
LSM backers must be the one with powers who gained much profit by LSM business. That, i am sure happen everywhere.
These nameless + faceless people +LSM+KEPA+KEPCAI+BROADCASTING CO+ ??? —–>>> JYJ+JYJ FANS.
Its very scary, right?
injustice will continue ..it will not end as long as there people who continue to blindly allow themselves to be used and abused. If there’s what they call loyalty….there’s also such thing as self worth and self respect. IT’s also not right to let bad things happening on you and around you
though it has caused and causing them lots of problems, I’m really happy that JYJ’s hearts are brave enough to honestly do what is right…brave enough to expose the real life is under this kind of man. It makes me proud being a fan of JYJ, I’m hoping JYJ will be catalyst for change in K-ent industry
I’m not buying any products of SME….Let’s see how rich you will be ….
That’s how it is done sweetie. One person, then another, and so on.
The only way these bloodsuckers get rich is when FANS spend their money. THIS is the only way to stop them. That’s why it is so important to them to try and stop JYJ, because they won’t be able to get their hands on JYJ’s money.
Only JYJ will get their hands on JYJ’s money! 🙂
@ButterFliesAreFree Yeah !!! You are right !!! I’m so happy JYJ has the guts to do what they were doing …..It’s so brave of them ….It’s like, 3 of them, were at war with thousand of troops of corrupted people…But still JYJ dared to choose that path…..Right this minute I hope GOD really exists & help those who really are in need …..Or at least show them miracles do happen anywhere & anytime….JYJ, you have to believe in us for not letting you go & we will support you guys, no matter, what happened….
I keep reading these…and im keep asking myself “why they left so quickly without Homin???!!!!”
I mean…i was wondering IF…IIIIIIIIFFFF those kids…like Yoochun..all alone in Korea..receiving so many …SO MANY FAVOURS of some strangers people “JUST ‘CAUSE YOUR SUPPOSE TO BE TALENTED”…what if…what if…???!!!!!
…
it’s a matter of choice and it was homin’s decision to stay (whether it was a something that homin decided on last minute or not).
dont mean to be rude. but i really dont understand what youre trying to say. what do you mean by ‘what if?’
what if what?
Isn’t it obvious? She wanted to say what if they were molested sexually or any other way, that’s why they left leaving everything behind them, friends, fame, fans, everything.
i guess not, thats why i asked her what she meant. right..? im a bit slow.
but thanks for explaining.
@nniichan
I’m so sorry. I didn’t mean to snap at you even if it sounded like this… 😦 I’m simply so engry with SM now, I could strangle someone. Because I was thinking the same as @kanu…. And it wasn’t a plesant thought… 😦
That’s what I’m afraid of too – the very thought of it is making me feel sick to my stomach. They don’t SEEM to have any of the markers of someone who’s been sexually abused though. *Praying*
Plus they didn’t leave “suddenly”. They tried to negotiate with sm for a year & a half before they left.
The guys aren’t the ones that are sexually abused it’s the girls. The guys are treated a lot better than the girls but they are still treated horribly. I worry that SME will decide to blackmail them for certain things that they have done in the company (even though a lot of it was under the influence of SME). It could actually ruin their careers if any of those bad things ( the things none of us really want to think about or even know about) get out. That I think is the main reason why no one, except for JYJ, wants to stand up against SME. SME threatens people and companies with blackmail to get what they want.
They probably tape stuff as well.
The guys aren’t the ones that are sexually abused it’s the girls
…
some other people can call this out as sexism, but just to let you know, sexual harassment / abuse doesn’t discriminate whether it’s male or female or alike.
@Sapphire
Well, with Jaejoong openly hating any place where people are able to touch him – like airports – and with his looks… No. I refuse to think about it… 😦
And then AVEX banned JYJ because Baek engaged in mafia thingie *bitter laugh* if that’s the case DBSK shouldn’t have entered Japan AT ALL.
This news gave the creeps.. I feel like I’m reading a fiction..
I hope that our boys didn’t have to face any of this.. :((
I think we will never know now.. :(((
i knew lee soo man is a bandit. so he got a lot of bad things. i’ve heard from a trustable source that he got a lot of mafia’s acts. right now avex only wants tvxq. how about the others? like suju and snsd. they keep hiding it huh. gone with the wind u lee soo man. i hate u
so, until that now, my bf asking me. who does we work for? that bandit has a crime again right. all the money that they work for was investigate by police i’m sure
why their manager doesn’t know??? HE MUST BECOME TRAVEL CONSULTANT IN DWDAYA WITH LESS SALARY WHICH ONE HE CAN HAVE HIS OWN TRAVEL.
lol
why? are you LSM admirer?
Ooh the shade!