I want to be a chaebol

Li Xiuman took Song Yi into the largest conference room in the SM building. Jin Yingmin introduced to Song Yi and others the business development of SM Entertainment last year. Jin Xiyuan listened very carefully and took notes from time to time. Song Yi looked at the screen and began to lose focus.

It is actually not difficult to make Li Xiuman surrender. After all, Lee Soo Man has been in charge of SM Entertainment for 23 years, during which time he embezzled 744.3 billion won from company accounts, which is a huge amount of money worth 3.9 billion yuan.

SM Entertainment has planned to be listed on KOSDAQ since 1999. The conditions for listing at that time required that the company's registered capital must exceed 1 billion won, while SM Entertainment's registered capital was only 50 million won.

Therefore, SM Entertainment needed to increase its capital contribution and needed money, so it implemented a paid capital increase of 1.15 billion won. Lee Soo Man couldn't afford the money, so he withdrew 900 million won and 250 million won respectively from two SM Entertainment companies to complete this capital increase.

To sum it up simply, it is false capital injection. Lee Soo Man withdrew the money from SM Entertainment's company account and then reinvested it into SM Entertainment.

When a company increases capital, it hopes to attract external funds to the company. False capital injection, taking out the company's money and reinvesting it into the company, is actually financial fraud. This crime is not light.

SM Entertainment was successfully listed in April 2000. In March 2000, Lee Soo Man and his parents held a total of 66.99% of SM Entertainment shares.

In April 2000, SM Entertainment issued shares at a price of 12,000 won per share. In June 2000, SM Entertainment's market value was 180 billion won. Lee Soo Man holds 53.59% of the shares, and the corresponding stock market value is 96 billion won.

Li Xiuman completed the most basic payment for the purpose of listing. The company's board of directors was not held, and everything was done under Lee Soo Man's instructions. South Korean prosecutors have not yet investigated Lee Soo Man, and it is estimated that Lee Soo Man has not returned the embezzled 1.15 billion won to SM Entertainment's company account.

Zhong Xiaotong resigned as the president of South Korea in 2002. In January 2003, Lee Soo Man was wanted by Interpol for misappropriating funds. In May 2003, Lee Soo Man was investigated by the Seoul District Prosecutor's Office and was eventually sentenced to two years in prison and three years of probation.

If Song Yi uses this excuse to threaten Li Xiuman, Li Xiuman will definitely give in. But there is no need to throw out this trump card so early.

The current total market value of SM Entertainment is around 160 billion won, and the stock price is at a low level. After all, TVXQ and Boa have not yet become popular in the Japanese market.

New Asia Capital Fund can buy some SM Entertainment stocks, which is also a good long-term investment. In 2014, SM Entertainment's market capitalization exceeded 2 trillion won, entering the top 10 of KOSDAQ's market capitalization for the first time.

Song Yi is a little greedy. He now needs 60 to 70 billion won to replace Lee Soo Man as the largest shareholder of SM Entertainment. But he knew that Lee Soo Man was not that stupid and would just watch SM Entertainment disappear.

SM Entertainment is Lee Soo Man's cash cow, how could he let go so easily. When SM Entertainment went public, the company's brochure stated:

"Like Project is responsible for the music consulting and production of its singers. It will pay 15% of the album sales as a handling fee." This Like Project is Lee Soo Man's personal company.

Lee Soo Man is the chief producer of SM Entertainment. Lee Soo Man has received a high salary from SM Entertainment. It's like Lee Soo Man gets double remuneration from SM Entertainment.

In 2000, SM Entertainment paid 2.1 billion won in labor fees to Like Project, and SM Entertainment Pictures' profit that year was 1.846 billion won. SM Entertainment paid a total of 174.3 billion won in labor fees to Like Project over the next 22 years.

Look how many levels Lee Soo Man's financial skills are higher than those of JYP's Park Jin Young and YG Entertainment's Yang Hyun Suk. YG Entertainment was listed in 2011 and JYP Entertainment was listed in 2013. There have never been so-called three major entertainment companies. YG Entertainment and JYP Entertainment have always been younger brothers to SM Entertainment.

If Hybe Entertainment hadn't been lucky enough to pick up BTS, SM Entertainment would have been the only entertainment company. However, Hybe Entertainment’s market value of 5 trillion won is estimated to be unprecedented and unprecedented. After all, the Korean entertainment market is so big.

The predecessor of Hybe Entertainment is Big Hit Entertainment founded by Bang Ji Hyuk in 2005. The company has always been tepid. It was not until BTS debuted in 2013 that the company soared.

In addition to SM Entertainment, New Asia Capital Fund can also make financial investments in YG Entertainment and JYP Entertainment. Sooner or later, New Asia Media will set up its own wireless TV station and produce variety shows. It is not a good thing to have good relations with major entertainment companies in advance.

"President Song, what do you think of my plan?" Li Xiuman's question drew Song Yi, who was wandering from space, back to the conference room.

Song Yi was stunned for a moment. He didn't even listen to the plan. He said calmly, "President Li is very thoughtful, but we can still improve it a little bit."

Jin Xiyuan, who was sitting under Song Yi, almost laughed out loud. She knew the man next to her so well. Song Yi definitely didn't take Li Xiuman seriously, so he used the dragging technique.

Song Yi often does this when listening to Xinya employees' work reports. When employees hear Song Yi say this, they often think that Song Yi is not satisfied with their plan, so they rack their brains to improve it.

Lee Soo Man took the initiative and asked, "President Song is not very optimistic about the plan of this 12-member girl group?"

Song Yi understood now that Lee Soo Man was planning to create a large girl group similar to Super Junior. S.E.S is a three-member group, and Fin.K.L is a four-member group. Unexpectedly, Lee Soo Man actually plans to launch a 12-member girl group, which is simply the Korean version of the 12-member girl band.

In fact, Girls' Generation's team is constantly changing, and many trainees are constantly changing. The 12-member lineup of Girls' Generation since 2005 is: Lee Yeon Hee, Hong Bo Ra, Bae Seok Bin, Zhang Liyin, Jung Soo Yeon, Kim Hyo Yeon, Kwon Yoo Ri, Choi Soo Young, Lim Yoona, Seo Joo Hyun, Kim Ye Jin and Park So Yeon.

SM Entertainment wanted to debut Kim Taeyeon as a solo singer at that time, but Sunny had not joined SM Entertainment at that time. Lee Yeon Hee later debuted as an actor, and Park So Yeon left SM Entertainment to debut with Tara.

Song Yi looked at the screen and said, "Director Kim, please show me the female trainees you are optimistic about." Information about Lee Yeon Hee, Kwon Yoo Ri, Jung Soo Yeon, Kim Hyo Yeon and Choi Soo Young appeared on the screen.

Song Yi pointed at Li Yongxi again and said, "President Li, please introduce this trainee."

Li Xiuman didn't know what Song Yi meant. Could it be that New Asia Media took a fancy to Li Yongxi?

"Lee Yeon-hee was born in Seoul on February 26, 1988. He participated in the SM Best Youth Selection in 2001 and won the Best Appearance Award and the Best Award. He is currently receiving singing training at the company." Lee Soo-man said.

Song Yi thought about it and found out that Li Yongxi was thirteen years old this year. Song Yi asked, "How tall is Li Yongxi now?"

Li Xiuman suddenly got stuck and looked at Jin Yingmin. "162 centimeters." Jin Yingmin answered helpfully.

"Have you had your bone age measured? How high do doctors say her height is?" Song Yi continued to ask, before entertainment companies sign contracts, they usually take trainees to have their bone age tested to predict their height. Koreans are all about appearance, so female idols who are tall and have long legs have an advantage.

Kim Young-min is obviously very concerned about Lee Yeon-hee, "The doctor said that Lee Yeon-hee should be about 172 centimeters tall in the future."

Song Yi nodded, "In my opinion, the number of people in a girl group of 12 is too much. It is even difficult for fans to remember the names of each member. I suggest that the number of people in the group should be kept at 8 to 9 people. The height should be controlled between 1.6 and 1.7 meters, which is actually more conducive to choreography."

"Li Yeonxi has such an outstanding appearance and has the advantage of height. It is a pity to debut simply as an idol. In fact, she can consider developing into an actress." Song Yi expressed his point of view.

Li Xiuman suddenly became interested, "Does Chairman Song think highly of Yeon Hee? I actually want SM Entertainment's artists to develop into actors, but SM Entertainment's artists often fail to make it to the final round of auditions when they audition for TV dramas. "

Song Yi understood what Li Xiuman meant. I would like to train a few actors, but it's a pity that the TV station doesn't buy it. It is impossible for SM Entertainment to invest billions of won in filming a TV series. If they lose money, they cannot afford the loss.

"Actually, I think we, New Asia, and SM Entertainment can strengthen cooperation." Song Yi suggested.

Li Xiuman narrowed his eyes. While observing Song Yi's expression, he guessed Song Yi's true intention.

He pretended to be interested, "I wonder what cooperation President Song refers to?"

Song Yi sat back and said, "Actually, there is still a lot of room for cooperation between our Xinya and SM Entertainment, such as inshcool. In fact, SM Entertainment can open an official homepage on the inschool website and publish some official news, such as Boa's schedule, An Qixuan What variety shows were recorded, SM Family concert time and location, etc.”

Nam Soyoung heard a keyword, "SM Family Concert?"

Song Yika paused, "You guys, SM Entertainment hasn't launched the SM Family Concert yet, right?"

"The popularity of KangTa and Boa is not enough to support a large-scale concert, so wouldn't it be possible to gather all SM Entertainment's singers to hold a mixed concert to solve SM Entertainment's current group outage problem?"

"Of course, we can give this kind of platter concert a fancy name, called SM Town World Tour Concert. SM Entertainment can cooperate with the three major TV stations to broadcast the concert live. In addition to increasing the company's ticket revenue, it also It can attract more people to pay attention to SM Entertainment, and also attract more young artists to join SM Entertainment." Song Yi suggested.

The H.O.T group has disbanded, leaving only KangTa An Qixuan, and the S.E.S group will not renew its contract when it expires at the end of the year, so the SM Town World Tour Concert that Song Yi mentioned is indeed necessary. As for TV stations, SM Entertainment and MBC TV station have always had a good relationship.

"Chairman Song is right. SM Entertainment should indeed open an official homepage on inshcool. KangTa and Boa can also open a homepage on inschool." Lee Soo Man said.

Kim Hee-won happened to interject a suggestion at this time, "In fact, not only KangTa and Boa, but also President Lee, Representative Kim and Representative Nam can open a homepage on inshcool."

"In addition to promoting the new album and concert, you can also clarify some negative news on inshcool. For example, wasn't it revealed that KangTa was at odds with the other two members of H.O.T a few years ago? You can upload a photo of the H.O.T trio having a dinner together during the Spring Festival. Let’s refute this rumor.” Jin Xiyuan said.

When Li Xiuman heard what Jin Xiyuan said, he only now realized the importance of inschool. Inshcool can even replace the three major TV stations and the three major newspapers in the future and become the most important public opinion channel.

"I wonder how many users inschool has now?" Li Xiuman couldn't help but ask.

Jin Xiyuan said with a smile on her face, "Because New Asia Network does not need external financing, we rarely announce the specific number of users. But since President Li asked, I might as well give you the bottom line. Currently, the number of registered users in inschool has exceeded 8 million. , accounting for about one-sixth of South Korea's population. In two months at most, the number of inshcool users will exceed 10 million."

Inshcool's Valentine's Day advertisement is obviously very successful. Korean office workers have signed up for Inshcool. According to a survey, more than 50.5% of young people aged 19 to 30 have registered an Inshcool account. Among people aged 30 to 40, 34.4% have registered inshcool. This is a very high proportion.

When Li Xiuman heard what Jin Xiyuan said, he couldn't help but sigh at the rapid development of inschool. In less than a year, inshcool already had 8 million users. Inshcool’s user group and SM Entertainment’s consumer group are actually highly overlapping.

If we can use the inshcool platform, SM Entertainment may be able to sell more albums and achieve higher revenue and profits, and SM Entertainment's stock price will naturally rise further.

It's a pity that New Asia Network Co., Ltd. does not raise funds, otherwise he would like to buy some shares of New Asia Network. If inshcool is listed in the future, its market value will be at least more than 10 SM Entertainment. However, Lee Soo Man never expected that inshcool’s future market value would be far more than 100 SM Entertainment.

Song Yi has also recently considered the listing of the New Asia Series. He plans to split and merge the companies in the New Asia Series. The Mainland's New Asia Network and South Korea's New Asia Network Co., Ltd. will be divested, as will the Mainland's New Asia Investment, Shining Investment Partnership and South Korea's New Asia Capital Fund.

The main subjects of New Asia's backdoor listing plan are media companies and real estate companies. Internet companies and investment companies are not included in the listing plan for the time being. Media companies and real estate companies alone can support a market value of at least 2 to 3 trillion won.

Lee Soo Man is considering whether to join forces with Naver or Daum to start a new social networking site. If inshcool rises, the three major portals, Naver, Yahoo Korea and Daum, will certainly be the biggest threat. After all, if all employees of SM Entertainment are stationed in inshcool, it means that inshcool firmly grasps SM Entertainment's media resources, and SM Entertainment is controlled by inshcool.

Yahoo Korea has actually noticed inshcool. They tried to acquire inschool for 50 billion won, but Song Yi rejected it without hesitation. Yahoo Korea was unwilling to raise the acquisition price because it could not judge the profit prospects of inschool.

Song Yi remembers that the red leader Zhou Hongyi sold the 3721 website to Yahoo for US$120 million in 2003, and he became the CEO of Yahoo China. In 2002, the annual sales of 3721 reached 200 million yuan, with a gross profit of 60 million yuan. Yahoo Korea now only plans to acquire inschool for less than 300 million yuan. Isn’t this an international joke?

However, inshcool already has the first-mover advantage, and users are already accustomed to the website inschool. If Yahoo Korea launches a similar social networking site, it remains to be seen whether it can retain users.

Li Xiuman thought clearly. He felt that re-establishing an inschool in South Korea was too time-consuming and laborious. After all, not everyone wants money and connections like Song Yi.

Since he can't beat New Asia, Lee Soo Man must consider making inschool a natural ally of SM Entertainment.

He told Song Yi, "Actually, our SM Entertainment intends to have all members of our team stationed in inshcool, including three boy groups and one girl group that will debut in the future. In fact, our TVXQ, which will debut next year, can also pre-heat it on the inschool website to make its online debut. .”

"SM Entertainment's inschool homepage will introduce the five members Jung Yunho, Kim Jaejoong, Shim Changmin, Kim Junsu and Park Yoochun in sequence. Then they will open their personal homepages on inshcool, and our SM Entertainment can also live broadcast TVXQ's debut concert on the inschool website. Let inschool users accompany their beloved idols online to debut as a group."

"Isn't inshcool's Valentine's Day advertisement 'inschool, accompanying you every day'? If inshcool users accompany the idols they support on the website to grow up day by day, and then successfully debut, release albums, and hold concerts. I believe in SM Entertainment and inschool can achieve a win-win situation," said Lee Soo Man.

There's something about Lee Soo Man, and Song Yi thinks TVXQ's plan to debut in inshcool should be considered. All members of SM Entertainment have joined inschool, so does Lee Soo Man want to get preferential treatment from inschool, or does he want to become a shareholder in inshcool?

Unfortunately, for all entertainment companies in South Korea, even the large and powerful CJ Entertainment, inshcool is a unique promotional platform. As for companies like SM Entertainment, you can find at least two or three in inschool. In short, SM entertainment needs inshcool, but inschool does not necessarily need SM entertainment.

"President Li, you might as well say it directly." Song Yi said.

"See if the two companies SM Entertainment and New Asia Network Co., Ltd. can exchange their shareholdings. SM Entertainment will become a shareholder of inschool, and New Asia Network will also become a shareholder of our SM Entertainment." Li Xiuman said cautiously.

Song Yi smiled, "President Li, New Asia Network has not yet been listed, and the company's valuation is actually uncertain. How to exchange shares? Yahoo Korea acquired inshcool for 50 billion won, but I didn't even sell it. If I say inschool This website is worth 10 trillion won, are you still willing to exchange shares with me?"

When Lee Soo Man heard this, he joked, if inschool is worth 10 trillion won, then 1% of inschool shares can buy half of SM Entertainment, so what is he trying to do?

Song Yi said: "Look, this is the difference between me and President Li. In this way, I am quite interested in the plan that President Li just proposed for TVXQ to debut in inshcool."

"Our New Asia Media will produce 2 TV series and 2 movies this year. This year it will be 2+2, next year it will be 4+4, and the year after that it will be 4 movies and 8 TV series. Obviously our contracted artists of New Asia Media will not be able to star in them. With so many film and television dramas, we are also willing to provide SM Entertainment artists with opportunities to star in film and television dramas. It depends on President Li whether you agree to let us, Xinya, become a shareholder of SM Entertainment." Song Yi said.

When Liu Huiying heard that Song Yi was planning to invest in SM Entertainment, she couldn't help but take a deep breath. If New Asia Media becomes the majority shareholder of SM Entertainment, then her daughter Seo Joo Hyun will become SM Entertainment’s true daughter.

See you tomorrow