As previously reported, SM Entertainment became subject to a special investigation on the basis that they allegedly set up paper companies to hide earnings and evade taxes. Now, KBS News updated on the situation on March 27, saying that Lee Soo Man was revealed to have purchased an ultra luxurious mansion in Los Angeles with the profits from celebrities' global earnings that he hid away in paper companies. 

According to this report, Lee Soo Man purchased a $4.8 million dollar mansion on Malibu Beach in Los Angeles back in April.  Every time he visited the United States, he would go to this mansion.  However, as his personal investment limit was deemed to be about $3 million dollars, it appears he was not able to buy it all by himself.  A company in Hong Kong covered half of the remaining amount and this company was revealed to be affiliated with SM through Polex Development Limited, which is registered under the same address as SM's Hong Kong office. KBS News contacted Polex and in a phone interview, a person on the phone said, "the real owner of the company is Korean... do you know Lee Soo Man?"

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However, this mansion is not all as he also has a couple mansions and villas worth almost $2.8 million dollars on the Malibu coast as well as in Los Angeles's Korea Town. Meanwhile, SM Entertainment are keeping their mouths tightly closed about all this, but the National Tax Service is planning to do a thorough and intensive tax investigation on Lee Soo Man.