The National Tax Service, "SM Entertainment, Lee Soo-man, should pay 20.2 billion won in fines."

Tax authorities conducted a tax investigation into SM Entertainment, the nation's largest entertainment agency, and SM executive producer Lee Soo-man, imposing a fine of 20 billion won. SM Entertainment protested, saying it will proceed with the process of disobedience after payment.

SM Entertainment announced on the 5th that it was fined 20.2 billion won as a result of a tax investigation by the Seoul Regional Tax Office. It is equivalent to 3.19% of SM Entertainment's equity capital.

SM Entertainment said, "After receiving the tax notice, we will pay the additional fine by the end of March, which is the deadline for payment, and we will proceed with the process of disobedience later."

According to related industries, NTS surveyed SM Entertainment and Lee Soo-man, conducted a special tax investigation, an irregular tax investigation, following the discovery of charges of evasion.

Tax authorities are said to have detected the leak of corporate funds in the transaction between producer Lee and corporation.

SM Entertainment is one of the leading entertainment agencies in Korea, which includes EXO, Red Velvet, and NCT.

According to the Financial Supervisory Service's electronic public system, the general producer Lee is the largest shareholder who owns 18.73% of the company as of September 30 last year.

SM Entertainment also underwent tax audits in 2009 and 2014.

SM Entertainment said, "We received regular tax audits for the first time in six years since September last year," adding, "We have been working hard and are waiting for the results."

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