Earlier, it was reported that Lee Soo Man was suspected of purchasing a mansion in Los Angeles through a paper company, Polex Development Limited, during an investigation into tax evasion.  At the time, Lee Soo Man's side kept quiet about this, but they spoke up later through an official statement.

SEE ALSO: SM's Lee Soo Man revealed to have purchased an LA mansion through a paper company

On March 27, SM said:

"When Producer Lee Soo Man and Polex Development acquired the real estate in Malibu on April of 2007, Producer Lee Soo Man followed the legal procedure and completed the report of overseas real estate acquisition.  Even after he sold this real estate, he followed the determined process and reported this overseas real estate sale.

In relation to the relevant acquisition period and funding, he reported the truth about this acquisition to the Korean foreign exchange and taxation authorities and went through the lawful procedure to transfer money for this acquisition.  In conclusion, the report acting as if Producer Lee Soo Man exported his wealth overseas through illegal methods is not true and this is rather an unfortunate event."