I want to be a chaebol

SM Entertainment's profit in 2001 was only 2 billion won. Lee Soo Man has always been stingy. SM Entertainment has never paid dividends in the 20 years since it went public.

In 2021, SM Entertainment's annual revenue was 701.5 billion won and profit was 123.4 billion won, both hitting record highs. SM Entertainment implemented dividends to shareholders for the first time, with a dividend of 200 won per share. The board of directors stated that SM Entertainment will become a company more friendly to shareholders.

Therefore, from an investment perspective, unless New Asia can gain control of SM Entertainment and become the company's largest shareholder like Kakao, it will not be worthwhile as a purely financial investment.

Lee Soo Man is also considering this issue. If he wants New Asia and SM Entertainment to have more cooperation in film and television dramas and inshcool, it is right for SM Entertainment to let New Asia take a stake.

However, the size of the stake is a technical issue. In 2016, Ali originally planned to invest 100 billion won (560 million yuan) in SM Entertainment, becoming the second largest shareholder after Lee Soo Man.

When it was finally announced, Alibaba actually invested RMB 195 million in SM Entertainment and obtained 4% of SM Entertainment’s equity. The treatment varies greatly depending on the amount of investment. More than 5% of shareholders can nominate temporary proposals within 10 days, and nominate directors at the shareholders' meeting to join the board of directors.

Now Lee Soo Man alone holds about 50% of the shares. Although Kim Young Min and Nam So Young are internal directors of SM Entertainment, SM Entertainment is basically Lee Soo Man's voice.

If New Asia only wants to buy a small amount of SM Entertainment shares and does not seek a board seat in SM Entertainment, that would be okay. If New Asia Group were to join the board of directors, and Li Xiuman was now suspected of financial fraud, he would certainly not dare to let New Asia Group enter the company's board of directors, for fear that New Asia Group's director representatives would ask for an audit.

Li Xiuman pretended to be calm and took the initiative to speak, "We at SM Entertainment also welcome external investors to join the company. I wonder how many SM Entertainment shares Chairman Song plans to buy?"

Song Yi glanced at Jin Xiyuan, and Jin Xiyuan understood instantly. She answered, "We at Xinya are not seeking board seats in SM Entertainment. We plan to buy 3% to 4% of SM Entertainment shares and that's about it."

When Jin Yingmin and Nan Zhaoying heard Jin Xiyuan's answer, they were instantly relieved. Lee Soo Man withdrew 1.15 billion won from SM Entertainment's account and then falsely increased capital in SM Entertainment. This matter could be hidden from others, but not from them.

This is also part of the cooperation agreement between Kim Young Min, Nam So Young and Lee Soo Man. Nam So Young served as the president of SM Entertainment and currently serves as the president of SM Entertainment Japan.

When the new president takes office next year, Kim Young-min can step from behind the scenes to the stage and become the new president of SM Entertainment. Lee Soo Man will retire behind the scenes and continue to serve as his production director and the company's largest shareholder.

Li Xiuman and the three have formed an offensive and defensive alliance. Naturally, they do not want New Asia to come and disrupt the situation. It would be in their best interest if New Asia does not seek board seats. After all, the combined net worth of the three of them is not as much as a fraction of Song Yi's.

Kim Young-min looked at the graceful and graceful Yoo Hye-young, and he secretly guessed that Song Yi was willing to spend billions of won to buy shares of SM Entertainment in order to protect Seo Joo-hyun. Who would believe that Song Yi and Liu Huiying are just "good friends"? You must know that South Korea has not abolished the crime of adultery.

Liu Huiying noticed Jin Yingmin's meaningful eyes. She knew that Jin Yingmin had misunderstood that she and Song Yi had an ambiguous relationship, but she could not explain it verbally. When she took Song Yi's special car to the SM building, she was destined to be unable to clean herself up.

She now even began to suspect that Song Yi was really trying to acquire shares in SM Entertainment for her sake, which caused waves in her peaceful heart.

If based on SM's current stock price, 4% of SM Entertainment's shares are worth 6.4 billion won, which can buy a top-level apartment in the most luxurious area of ​​​​Gangnam District. Many listed companies on KOSDAQ do not make that much profit in a year.

Liu Huiying couldn't help but look at Song Yi secretly. Song Yi had a tall nose, thin lips, and slanted eyebrows that flew into a few strands of black hair under the temples. He has a handsome profile and impeccable facial contours. He is really a mature man with great taste.

As the principal of a piano training center, she has met all kinds of men, but Song Yi left a deep impression on her. None of the male friends she knew could compare to Song Yi.

Korean men are usually arrogant and look down on women. For example, her annual income has far exceeded that of her husband, but her husband still dislikes her public appearance outside and wants her to be a full-time housewife at home.

Song Yi doesn't have the common problems of Korean men and has always respected her very much. Song Yi often visited her home, always with his female companion, and he never came empty-handed.

Because of her business, most of the female friends she knows are in business. Among them, she knew that several of them had lovers outside, and their husbands also pretended not to know. The couple went about their own lives, just like celebrity couples in the entertainment industry.

I heard that if a man has a high nose, he is gifted in that area. I don't know if it is true. Liu Huiying looked at Song Yi's nose again, and then couldn't help but squeeze her legs.

Song Yi didn't know what Liu Huiying was thinking, and he continued to dig holes for Li Xiuman. "Rather than a public acquisition from the stock market, I prefer internal transfer among shareholders. If President Li doesn't mind, we can draft a share transfer agreement today."

SM Entertainment is a listed company. Even if Lee Soo Man agrees to transfer shares to Song Yi, they still need to go to the Korean Stock Exchange or Securities Clearing Company to go through the procedures for a tradable stock transfer agreement. Because the major shareholder needs to seek the consent of other shareholders to transfer shares, other shareholders have the right of first refusal.

If New Asia Investment acquires SM Entertainment shares at a price higher than the current stock price, it means that New Asia Investment is optimistic about SM Entertainment's later development, which is a good thing. If the acquisition price is lower than the current stock price, it means that the major shareholders are not optimistic about the company's subsequent development, which is considered a negative.

Of course, New Asia can publicly acquire SM Entertainment shares from the stock market, but the cost of public acquisitions is generally higher than negotiated acquisitions. So now Li Xiuman and Song Yi need to determine the proportion and price of the transferred shares.

Song Yi did not give Li Xiuman a chance to bargain, "Let's do this. I will give President Li two options. First, Xinya will buy 4.8% of SM Entertainment shares at a price 5% higher than the current stock price. The 4.8% sale ratio will be President Lee, Director Kim Young-min, and Director Nam So-young will allocate the money.”

"Second, New Asia bought 3% of SM Entertainment shares at a price 5% lower than the current stock price. It is enough for President Li to transfer these 3% shares alone." Song Yi said.

"If the cooperation agreement between SM Entertainment and New Asia Media is reached, it will be a major benefit to SM Entertainment. I believe that SM Entertainment's stock price will see a significant increase in the first half of the year. The stocks of President Lee, Director Kim and Director Nam have already exceeded one During the 20-year lock-up period, you can sell your stocks to make profits, but we at Xinya will continue to lock and hold them for a long time." Jin Xiyuan did not forget to add.

Jin Yingmin and Nan Zhaoying had an idea in their minds. Listening to Song Yi's words, if Xinya bought 4.8% of the shares, and if 1.8% of the shares were sold by Jin Yingmin and Nan Zhaoying together, they could cash out almost 3 billion won. There is also 1.5 billion won distributed to each person.

Moreover, after New Asia acquires SM Entertainment, it can also help stabilize SM Entertainment's stock price, and Lee Soo Man and the others can continue to reduce their stock holdings to make profits.

Lee Soo Man feels that even if New Asia holds 4.8% of the shares, it will not be able to make a dent in SM Entertainment. As long as New Asia does not join the company's board of directors, it will not threaten his control.

Li Xiuman briefly discussed with Jin Yingmin and Nan Soying for a few minutes and decided to choose the first acquisition plan.

"On behalf of SM Entertainment, I welcome Xinya to become a shareholder of the company. I also welcome Chairman Song, Executive Kim and Ms. Liu to come to SM Entertainment at any time to guide the work." Li Xiuman and Song Yi held their hands tightly together.

Now that Xinya has decided to invest in SM Entertainment, the rest becomes easy. Seo Joo Hyun signed a 6-year contract with SM Entertainment and will re-sign it after the contract expires.

According to Lee Soo Man's estimation, Seo Joo Hyun's girl group will debut in 2006 or 2007. By the time Seo Joo Hyun's first contract expires, Girls' Generation should have debuted.

Because each member of the girl group signs a separate contract, as long as Seo Joo Hyun does not reveal the inside story of the contract to other members of the team, they will not know that Seo Joo Hyun is receiving preferential treatment from SM Entertainment.

To be on the safe side, Song Yi called in the legal advisory team of New Asia Media. They carefully studied every clause and supplementary agreement in Xu Zhuxian's contract and determined that Xu Zhuxian was not troubled by the slave contract.

Li Xiuman thinks that Song Yi is making a fuss. There are so many trainees in SM Entertainment, but no trainee has ever been able to sign a contract with such loose conditions. Song Yi actually has to find fault with it.

Song Yi read Seo Joo Hyun's breach of contract clause. If Seo Joo Hyun's personal conditions meet the conditions for the group's debut, she quits the group due to personal reasons, such as Seo Joo Hyun suddenly not wanting to be an artist. Then Seo Joo Hyun needs to pay a training fee to SM Entertainment.

Seo Joo Hyun's family and SM Entertainment each bear 50% of the training fees. SM Entertainment will list the specific cost details of various trainings Seo Joo Hyun received. For example, SM Entertainment will hire dance teachers, vocal teachers, etiquette teachers, language teachers, etc. for Seo Joo Hyun.

Song Yi learned from Li Xiuman that the bulk of SM Entertainment's annual expenses are mainly divided into three parts: First, training costs. SM Entertainment's annual direct and indirect investment in training is as high as 5 billion won.

The second is systematic promotion expenses. Artists under SM Entertainment have to participate in singing programs or other variety shows on major TV stations to increase their exposure. These channels require money to maintain.

The third is the cost of producing songs. When SM Entertainment decides to launch a new idol group, it spends at least several billion won to create a debut album for the group. Even if no new group is launched in the past two years, 2 billion won will be fixed investment in the production of music content and market research.

Song Yi knew that SM Entertainment spared no expense in creating Girls' Generation. Each member of Girls' Generation spends five years training.

In order to give full play to the advantages of the girl group, SM Entertainment provides each member with intensive training and one-on-one training so that they can be competent in different roles in the team, such as who is the lead singer, who is the main dancer, who is the frontman, and who is the comedian. Take responsibility and so on.

Kim Hyoyeon's dance teacher was once Michael Jackson's backup dancer, and Jessica Jung and Kim Taeyeon's vocal teacher was Kim Chaohan, a well-known Korean R\u0026amp;amp;amp;amp;B singer. During the five-year period, SM Entertainment's training costs for each member were approximately US$3 million.

This means that SM Entertainment has invested US$27 million in Girls’ Generation before their debut. From its debut in 2007 to 2009, SM Entertainment still suffered losses from Girls’ Generation. After "GEE" became an instant hit in 2009, Girls' Generation contributed US$100 million in revenue to SM Entertainment in four years from 2009 to 2012.

Song Yi also adjusted the share ratio between Seo Joo Hyun and SM Entertainment. Usually the share ratio of artists' first contract with SM Entertainment is very low.

Since debuting as a trainee, SM Entertainment has been allocated 97%, and artists have been allocated 3%. Domestic commercial performances and albums in Korea are split between SM Entertainment and artists on September 1st. Advertising endorsements are quite friendly, SM Entertainment and artists pay 40-60%, and film and television drama remuneration is also 40-60%. Overseas activities and albums are open at 30-70.

In short, SM Entertainment artists cannot make money in the Korean market. The bulk of their income comes from overseas markets, advertising endorsements and film and television drama remuneration. So whether it's TVXQ, SJ, SHINee, Girls' Generation or EXO, they are all keen to make money overseas. After all, the Korean market is really huge.

Because Song Yi can arrange advertising endorsements and starring roles in movies and TV series for Seo Joo Hyun, SM Entertainment is basically getting free money from Seo Joo Hyun. Therefore, Seo Joo Hyun and SM Entertainment's advertising endorsement and film and television drama remuneration share ratio is 70:30.

As for the income from albums, commercial performances and concerts, Xu Zhuxian has not made his debut yet, so there is no need to rush to adjust it for the time being. Sia Asia may have become the largest shareholder of SM Entertainment by then. It is not up to Song Yi to decide how to adjust it by then.

Ryu Hye-young also added a clause that if there is a conflict between company activities and school courses while Seo Joo-hyun is a trainee, study will be the main priority. Nam So Young didn't want to agree, but Jin Young Min immediately stopped her.

For SM Entertainment, they just want to find a reason to establish a long-term cooperative relationship with Xinya. As for whether Xu Zhuxian can finally debut from SM Entertainment, it actually doesn't matter.

The training expenses that Lee Soo Man mentioned just now are actually false reports. SM Entertainment inflated the company's expenses in order to cope with future investments, so that it does not need to pay dividends to the company's shareholders. Only Lee Soo Man, Kim Young Min and Nam So Young know how much money SM Entertainment makes.

Lee Soo Man, Kim Young Min, and Nam So Young all established personal companies, established exclusive cooperative relationships with SM Entertainment, and used various names to extract fees from SM Entertainment.

To give the simplest example, SM Entertainment hired dance teachers Pop\u0026amp;amp;amp;amp;Tattoo, Poppin' Pete and Skeeter Rabbit for Kim Hyo-yeon. They came to give Kim Hyo-yeon one-on-one lessons, but they did not receive them directly from SM Entertainment. The wages are paid to Nan Zhaoying's affiliated companies, just like a labor dispatch company. This is why SM Entertainment's annual revenue is hundreds of billions of won, but the company's book profits are pitiful.

Does Song Yi know Li Xiuman's routine? Of course he knows. Song Yi worked in an investment bank in China before he was reborn and invested in many companies. How could he not know the ropes?

Some company founders buy houses in their own names in order to get money from the company. Then he rented the house to the company, and the company paid the rent to him personally every month. As a result, he still lived in the house. Some bosses even have to take the money from the company to buy toothpaste, tissues and underwear. It can be said that every one of his daily expenses will not use his personal income, everything is paid for by the company.

Lee Soo Man thought the same way. Even if Seo Joo Hyun failed to debut in the end, SM Entertainment would have lost one to two million US dollars in training fees at most. The loss was the company's money, not his Li Xiuman's money, so he didn't feel bad.

By selling 3% of SM Entertainment's shares, he can get 5.04 billion won in cash at a time. Why is he dissatisfied? Kim Young-min and Nam So-young each sold 0.9% of SM Entertainment shares and also made a profit of 1.512 billion won.

Lee Soo Man thinks this cooperation is very pleasant. SM Entertainment has added a very good trainee, and through Seo Joo Hyun's relationship, he has boarded the New Asia team. It can be said that it kills two birds with one stone.

Others don't understand the strength of the new Asian series, how can Kim Young-min not know it? Song Yiguang is one of no less than ten members of Congress who frequently move around, including Song Woo-seok, Park Dong-ho, Ha Mi-ae, Zhou Dongyong, Zhou Mengzhun and others.

Song Woo-seok is running for the New Millennium Democratic Party. According to the latest poll results, he has a high probability of winning. Song Woo-seok has said more than once that Song Yi is a family member like his nephew. Anyone with a discerning eye knows that inshcool has been cheering for Song Woo-seok's campaign.

Song Woo-seok is the successor appointed by the current president Zhong Xiaotong. If Song Woo-seok is elected president and gives New Asia Group another five years, New Asia Group can at least become one of the top 20 consortiums in South Korea. If luck is better, it is not impossible to become one of the top ten consortiums. After all, New Asia has expanded rapidly in the media, Internet, real estate, semiconductor and financial industries.

To say the least, even if Song Woo-seok is not elected, he can become the leader of South Korea's opposition party. In South Korea's political arena, the ruling party and the opposition parties check and balance each other. Although the ruling party has an advantage, it cannot cover the sky with one hand. Moreover, even if Song Yuxi fails to win the election this year, he can still make a comeback in the next election, not to mention that Song Yi still has the strong support of most of the modern family.

Song Yi felt that he had achieved his goal. This time he bought 4.8% of the shares at a price of 8.064 billion won. He could advance or retreat. It was more convenient to increase or reduce his holdings.

If one day he no longer wants to hold SM Entertainment shares, he can just sell the shares without even issuing an announcement.

Song Yi gave up the public acquisition of SM Entertainment shares and internally acquired SM Entertainment shares from Li Xiuman and the others. In fact, it lowered Li Xiuman's vigilance and dug a hole for Li Xiuman.

New Asia is now acting like a good gentleman, neither nominating directors nor interfering in the management of SM Entertainment. They only ask Lee Soo Man and the others to take good care of Seo Joo Hyun, who is under the care of Song Yi in the company.

Of course, Lee Soo Man will also use the Like project to draw money from SM Entertainment under various pretexts. When he is investigated by South Korean prosecutors next year, he will know that New Asia is a capital crocodile that eats meat but does not spit out bones.

Song Yi took the initiative to visit Li Xiangda, the chief prosecutor of the Seoul District Prosecutor's Office, after a year. Li Xiangda reached an agreement with Song Yi under Zhong Xiaotong's suggestion. As long as Song Woo-seok wins the election of the New Millennium Democratic Party, the prosecutor will release Zhou Mengxian, and the final result of Zhou Mengxian will be a suspended sentence.

If Lee Soo Man falls into the hands of the Seoul District Prosecutor's Office, then sorry, the Seoul prosecutors will definitely get substantial evidence of Lee Soo Man's false capital increase.

Song Yi will definitely help others and help Li Xiuman leave the prosecutor's office. It is very reasonable for Li Xiuman to repay his kindness and transfer the shares in his personal name to the New Asia Department.

After Xinya becomes the majority shareholder of SM Entertainment, Song Yi will immediately ask SM Entertainment to stop paying labor fees to Like Project, and he will definitely spit out everything he eats.

Song Yi has no intention of driving Lee Soo Man out of SM Entertainment. He is actually quite optimistic about the duo of Lee Soo Man + Kim Young Min.

Lee Soo Man and Kim Young Min have a clear division of labor. Lee Soo Man is responsible for the final control of music quality; Kim Young Min focuses on market operations and does not interfere in the music production process.

SM Entertainment's management will fully discuss with the production team during the early planning stage meeting, and once the album production phase enters, the management will fully trust the production team. In the early days, SM Entertainment relied on Yu Yongjin for composition, but now SM Entertainment has sent an A\u0026amp;amp;amp;amp;R team to discover composers overseas. At its peak, SM completed cooperation with 50 composers, including TVXQ's "Mirotic", SHINee's "Love like Oxygen" and f(x)'s "Hot Summer" were both composed by Danish composer Thomas Troelsen.

For Song Yi, even if he wins the majority shareholder of SM Entertainment, he still needs Lee Soo Man to check the company's music works. After all, Song Yi is a layman in music. He has only listened to hundreds of Korean songs.

Lee Soo Man is an excellent music production director, but not a qualified company owner. Then New Asia will buy SM Entertainment in the future, and Lee Soo Man will work for Song Yi. This is the best combination. If Li Xiuman is unwilling to obey Song Yi's arrangement, then Song Yi has no choice but to send Li Xiuman in again. He believes that Li Xiuman must understand what it means to be a wise man.

After Xu Zhuxian signed the contract, Song Yi and his team left the SM building first. Liu Huiying and Xu Zhuxian had to take Song Yi's special car back to Xinya Building. Liu Huiying's Equus was still parked downstairs in Xinya Building.

Seo Joo Hyun, who was sitting in the middle of the back row, was still a little dazed. Has she become a trainee of SM Entertainment now? She finally became a little more lively and asked Song Yi, "Brother Song Yi, do you think I can meet the sisters from S.E.S when I am training in the company?"

Ryu Hye-young thought Seo Joo-hyun's question was funny. Xinya has become a shareholder of SM Entertainment, and SM's artists are not allowed to meet whenever they want.

Song Yi was very serious, "Zhuxian, I didn't ask you to join SM Entertainment to chase stars in the company. You have to understand that all SM Entertainment artists don't have opportunities like you. You have to train hard and strive to become a star." An excellent actor and singer, make your dreams come true."

Xu Zhuxian said "Oh", her desire to talk is quite strong now. Song Yi and Liu Huiying were talking about business just now, and she didn't dare to disturb them. She could only sit next to Liu Huiying without saying a word, almost suffocating her to death.

"Brother Song Yi, why did you buy the shares of SM Entertainment? This is such a big sum of money." Although Xu Zhuxian didn't understand the details, the figure of 8 billion won still shocked her at a young age.

Song Yi touched Xu Zhuxian's little head, "Because I want to be our Zhuxian's boss more than my brother."

When Liu Huiying heard what Song Yi said, her face became a little stiff. She remembered that Song Yi was the boss of Jun Jixian and Song Hye Kyo. If Song Yi becomes Seo Joo Hyun's boss, Seo Joo Hyun may still follow the path of Jun Ji Hyun and Song Hye Kyo in the future. Ryu Hye Young is now seriously considering whether to sacrifice her life to save her daughter.

Song Yi rescued Kim Jong Kook from Kim Kwang Soo just to exchange Tara from Jin Kwang Soo one day. A company as rubbish as Core Contents Media is not worthy of a girl group as good as Tara.

Now Song Yi has taken a stake in SM Entertainment to become the boss of Girls’ Generation in the future. Song Yi believes that the two second-generation girl groups, SNSD and Tara, will achieve greater success.

Song Yi may post on the Korean version of Zhihu and ask: "What is it like to be the boss of Girls' Generation? I'm waiting online, I'm very anxious."

Today is 6,000 words. Thank you all for your monthly votes. See you tomorrow.