It has been confirmed that the taxation authorities conducted a special tax investigation into SM Entertainment, the nation's largest entertainment agency, which includes Girls' Generation, EXO, and RedVelvet.
According to related industries on the 4th, the Seoul Regional Tax Office recently conducted a tax investigation against SM Entertainment and SM General Producer Lee Soo-man.
Since October last year, the company has started an on-site investigation of SM Entertainment's headquarters in Apgujeong-ro, Gangnam-gu, Seoul, and the investigation has recently been completed. The tax authorities reportedly detected the leak of corporate funds in the transaction between the executive producer and the corporation.
This time, it seems that it is not a regular tax investigation but an irregular tax investigation due to the detection of allegations of evasion.
SM Entertainment underwent tax audits in 2009 and 2014. At that time, he was accused of evading taxes abroad by not reporting income related to his entertainers' overseas expansion to Korea.
The survey reportedly focuses on stock changes related to Lee Soo-man, the richest stock producer in the entertainment industry, and the stock changes of Lee Sung-soo, CEO of SM Entertainment, who is Lee's nephew. Major shareholder of SM Entertainment is Lee's executive producer and has 18.73 percent.
The National Tax Service conducted a tax investigation on YG Entertainment during the "Burning Sun Gate" in 2019.
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