National Tax Service Conducts Investigation against SM Entertainment + Here's the Agency's Response
The National Tax Service in Korea reportedly conducted a tax investigation against SM Entertainment. On the same day, the agency released its side.
On Feb. 4, Thursday, it has been confirmed that the National Tax Service is conducting a special tax investigation against SM Entertainment. Shortly after the news, SM Entertainment released its response.
SM Entertainment Investigated by National Tax Service
According to industry sources, the 4th Bureau of Investigation at the Seoul Regional Tax Office recently conducted a tax investigation against SM Entertainment and its SME's general producer Lee Soo Man.
In context, the Bureau is a department that investigates charges of evasion by large corporations. It is a so-called "special tax audit." It is widely known that SM Entertainment is one of the nation's largest entertainment agencies, which is under the scope of the audit.
In addition to this, tax authorities apparently launched a special tax investigation after detecting the leak of corporate funds in the transaction between the general producer Lee and the company.
SM Entertainment Released Side Regarding Tax Investigation
Meanwhile, the agency giant explained on the same day that it had undergone regular tax audits for the first time in six years since September last year. SME stated, "We've been working hard and we are waiting for the results."
In 2009 and 2014, it was noted that SM Entertainment, the leading K-pop entertainment agency in Korea, also underwent the same tax audits. In the latter year, SM Entertainment had to pay an additional 10.2 billion KRW following the tax audit made by National Tax Service.
Related Article: SM Entertainment Ordered to Pay Government $10 Million: Label Pushes Back Against Tax Evasion Allegations
Nevertheless, it was emphasized that there was no tax evasion, and the amount paid was for foreign tax payment credit difference for SM Entertainment Japan.
SM Entertainment is the home to top-tier K-pop groups and artists, such as Kangta, TVXQ, Super Junior, SHINee, Girls Generation, EXO, Red Velvet, NCT, and its rookie group aespa.
SME's Founder Lee Soo Man Predicts K-Pop Industry Will Become a World of AI Like aespa
On Feb.1, SM Entertainment founder Lee Soo Man participated in the broadcast of "Monthly Connect," along with executive producers, professors, and directors through a Zoom meeting.
During the meeting, when asked about the future of K-pop, Lee Soo Man then, the general producer who recently attracted the attention of people around the world by introducing the "Online Performance Platform," reveals the background of proposing and realizing these innovative ideas and plans for the future.
He said, "The future will become a world of AI (Artificial Intelligence) and celebrity."
In particular, aespa, the rookie girl group launched by the agency in November 2020, introduced idols' avatars.
With their unique concept and powerful entry into the music scene with their single track, "Black Mamba," the group was able to debut in Billboard Global Excl. US at No.100, the highest rank achieved by a debut song.
On the other hand, aespa's single "Forever," a remake of Yoo Youngjin's hit track will be released on various music sites at 6 p.m. on the Feb.5, and music videos will be available on YouTube and Naver TV SMTOWN channels at the same time.
Read More: aespa to Release New Song 'Forever' This February
For more K-Pop news and updates, keep your tabs open here at KpopStarz.
KpopStarz owns this article.
Written by Eunice Dawson
