Another specific clause in the share purchase agreement between Lee Soo Man and HYBE has become an issue of media attention.
According to one exclusive media outlet report on February 24 KST, a section of the share purchase agreement which transferred 14.8% of SM Entertainment's shares owned by Lee Soo Man to HYBE indicates that the buyer's side has agreed to fund the seller with 10 billion KRW (~ $7.7 million USD) over the course of 10 years for any and all "ESG Campaign activities".
Specifically, the clause states:
"Funding responsibilities of the buyer: From the date of signing this agreement, the buyer must allocate 1 billion KRW per year to the seller for the next 10 years, and the seller must use the funding for ESG (Environmental, Social, and Corporate governance) activities. However, the specific categorization of ESG activities, and specific modes of support, funding, and procedures, will be determined based on further mutual agreement."
Previously, SM Entertainment co-CEO Lee Sung Soo accused Lee Soo Man of using his 'Humanity and Sustainability' campaign as a veil to cover up his business and real estate expansion goals.
Meanwhile, another report previously highlighted "ESG campaigns" as potential gateways for Lee Soo Man to participate in producing activities for and with SM Entertainment artists.
Finally, SM Entertainment's general board meeting of shareholders will take place on March 31.
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Realized he could no longer embezzle SM to pay for his 'ESG' campaign to set up Lee Soo Man World so he sold his shares to HYBE under the condition of getting funding for it. Everything will be about setting up Lee Soo Man World going forward for him and securing his future wealth.
I think it's clear LSM was never about the artists or the employees, it's always been about himself. It's still a tragedy what he did to JYJ and is probably a reason why the policy not to give individual members too much solo activities was created. It's a way to control them and not let them get too big to where they would be able to leave SM and think their careers will be okay.