How a former pop singer built the blueprint for the modern K-pop industry
In short: Lee Soo-man transformed the Korean music industry by importing the MTV-era production model he observed in the United States. As the founder of SM Entertainment, he pioneered an in-house system that meticulously managed every aspect of an artist's career, turning teenage idols into global cultural icons and business assets.
Lee Soo-man began his career as a singer in the 1970s, but his true impact arrived after he pursued a master's degree in computer engineering in the United States. Witnessing the rise of MTV superstars like Michael Jackson, Lee returned to South Korea in 1985 with a vision to professionalize the local music scene. He founded SM Studio in 1989, which later became SM Entertainment, implementing a holistic, in-house system designed to cultivate teenage talent. This model, which he called culture technology, focused on every detail of an artist's development.
Despite his success, Lee’s career has been marked by significant controversy and legal friction. In 2002, he faced prosecution for illegal stock market profits related to SM's KOSDAQ listing, leading to a suspended prison sentence in 2004. His business practices, particularly the use of his private production company Like Planning to collect consultancy fees, drew intense scrutiny from shareholders. By 2019, investors like KB Asset Management were publicly challenging his influence, alleging that his private entities were siphoning off a massive portion of SM’s operating profits.
The tension culminated in 2023 during a high-stakes battle for control of SM Entertainment. Following a restructuring plan that sought to remove his influence, Lee sold his stake to Hybe Corporation, sparking a corporate takeover war. His own nephew, SM co-CEO Lee Sung-soo, leveled accusations of tax evasion and self-dealing against him. Ultimately, Hybe withdrew, and Kakao secured management rights. Lee has since moved on to new ventures, including A2O Entertainment and projects focused on the intersection of culture and technology, leaving behind a complex legacy that defined the modern K-pop era.
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- Summary by Intellect · source: Lee Soo-man
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