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| Lee Soo-man, founder of SM Entertainment / Courtesy of SM Entertainment |
SM ends contract with founder Lee Soo-man
By Dong Sun-hwa
Employees at K-pop powerhouse SM Entertainment are divided over the exit of its founder and chief producer, Lee Soo-man ― the mastermind behind A-list K-pop stars including TVXQ, Super Junior, Girls' Generation, EXO and NCT.
After SM's co-CEOs Lee Sung-soo and Tak Young-jun announced Friday that the company has terminated its contract with the 70-year-old founder as its chief producer, some employees are showing support for the decision, while others aren't. The former claim that it is time for SM to begin a new chapter and move forward, but the latter insist the label still needs Lee's producing skills and experience.
On Friday, SM shared a YouTube video introducing its "SM 3.0" vision. As part of this vision, it will set up five production centers and independent music labels in pursuit of diversification, ditching its previous system in which Lee led the entire process of music production. It also plans to launch three rookie K-pop groups and one virtual soloist this year.
"Lee's contract with SM as chief producer has ended, but we truly appreciate his support as a shareholder," Lee Sung-soo said in the clip.
Some employees who are in favor of the decision said the company has been too dependent on the founder.
"Today, we lag behind our rivals in terms of market value and business profits. If we do not make a major reform, we will not be able to catch up with them," an SM worker wrote on Blind, an anonymous social media platform where only verified employees can upload posts and leave comments.
Established in 1995, SM used to be the No. 1 player in the K-pop scene. But lately, other record labels such as HYBE ― home to K-pop behemoth BTS ― have seen exponential growth in their sizes and sales.
Another wrote, "We should not dwell on our past glories. We should be more vigilant."
Supporters of Lee, however, claimed SM should not sever ties with him, adding the contract termination was also against his will.
Actor-singer Kim Min-jong, an SM executive who has been represented by the company for nearly two decades, sent an email to all SM employees after the announcement, slamming the company for "making a decision that will not benefit anyone."
"The CEOs did not have any conversation with Lee (about his resignation), and made the announcement without discussing the issue with others," his email read. "This will neither benefit SM family nor our shareholders. SM artists need Lee's producing skills. Although some say he is too old and that K-pop trends have changed over time, we can still make up for deficiencies if we join hands."
