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

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

Lee Soo Man is also considering this issue. If SM Entertainment wants Shin Asia and SM Entertainment to have more cooperation in film and television dramas and inshcool, it is only natural for SM Entertainment to allow Shin Asia to invest in it.

However, how much to invest is a technical issue. In 2016, Alibaba originally planned to invest 100 billion won (560 million yuan) in SM Entertainment and become the second largest shareholder after Lee Soo-man.

When the final announcement was made, Alibaba actually invested RMB 195 million in SM Entertainment and acquired 4% of SM Entertainment's equity. Different investment amounts lead to different treatments. Shareholders holding more than 5% can nominate temporary proposals within 10 days and nominate directors at the shareholders' meeting to join the board of directors.

Lee Soo-man currently holds approximately 50% of the shares. Although Kim Young-min and Nam So-young are internal directors of SM Entertainment, Lee Soo-man still has the final say in SM Entertainment.

If Shin Asia only wants to buy a small amount of SM Entertainment shares and does not seek a seat on the board of directors of SM Entertainment, it is fine. But if Shin Asia enters the board of directors, Lee Soo Man is now suspected of financial fraud, so of course he dare not let Shin Asia enter the company's board of directors, for fear that the director representative of Shin Asia will request an audit.

Lee Soo Man 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 shares of SM Entertainment Chairman Song plans to buy?"

Song Yi glanced at Jin Xiyuan, who understood immediately. She continued, "We at Xinya are not seeking a seat on the board of directors of SM Entertainment. We plan to buy 3% to 4% of SM Entertainment's shares."

When Kim Young-min and Nam So-young heard Kim Hee-won's answer, they were relieved. Lee Soo-man withdrew 1.15 billion won from SM Entertainment's account and falsely increased SM Entertainment's capital. 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 is currently the president of SM Entertainment Japan.

When the new president takes office next year, Kim Young-min will be able to step out from behind the scenes and openly become the new president of SM Entertainment. Lee Soo-man will then step back behind the scenes and continue to serve as his production director and the company's largest shareholder.

Lee Soo Man and the other two have formed an offensive and defensive alliance. They naturally don't want the New Asia Group to come and disrupt the situation. It would be in their best interest if New Asia does not seek a seat on the board of directors. After all, the combined wealth of the three of them is not even a fraction of Song Yi's.

Jin Yingmin looked at the graceful and beautiful Liu Huiying, and he secretly guessed that Song Yi was willing to spend billions of won to buy SM Entertainment shares in order to protect Xu Zhuxian. Who would believe that Song Yi and Liu Huiying were just "good friends"? You know, South Korea has not abolished the crime of adultery yet.

Liu Huiying noticed Jin Yingmin's meaningful look. She knew that Jin Yingmin misunderstood that she and Song Yi had an ambiguous relationship, but she couldn't explain it. When she took Song Yi's special car to the SM building, she was destined to be unable to clear herself.

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

Based on SM's current share price, 4% of SM Entertainment shares are worth 6.4 billion won, which is enough to buy a top-notch apartment in the most luxurious area of ​​Gangnam District. Many KOSDAQ listed companies do not make that much profit in a year.

Liu Huiying couldn't help but secretly look at Song Yi. Song Yi had a high nose, thin lips, and sword-like eyebrows that flew into the strands of black hair under his temples. His handsome profile and impeccable facial features made him a very mature man.

As the principal of a piano training center, she has met all kinds of men, but Song Yi was the only one who 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 is much higher than her husband's, but her husband still dislikes her being out in the limelight and wants her to be a full-time wife at home.

Song Yi did not have the common problem of Korean men, and he always respected her very much. Song Yi often visited her home, always with a female companion, and never came empty-handed.

Because of her business, most of the female friends she knew were in business. She knew of several who had lovers outside, and their husbands pretended not to know, and the couples played their own games, just like the celebrity couples in the entertainment industry.

I heard that if a man has a high nose, he is gifted in that aspect. Not sure if it is true, Liu Huiying looked at Song Yi's nose again, and then she couldn't help but clamp her legs together.

Song Yi didn't know what Liu Huiying was thinking, and he continued to set a trap for Lee Soo Man. "Rather than an open acquisition from the stock market, I prefer an internal transfer among shareholders. If President Lee 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 Korea Stock Exchange or the Securities Clearing Corporation to handle the transfer agreement of circulating shares. Because the transfer of shares by the major shareholder also requires the consent of other shareholders, and other shareholders have the right of first refusal.

If Xinya Investment acquires SM Entertainment shares at a price higher than the current share price, it means that Xinya Investment is optimistic about the future development of SM Entertainment, which is a positive sign. If it acquires at a price lower than the current share price, it means that the major shareholder is not optimistic about the company's future development, which is a negative sign.

Shinya can of course publicly acquire SM Entertainment shares from the stock market, but the cost of public acquisition is generally higher than negotiated acquisition. So now Lee Soo Man and Song Yi need to determine the proportion and price of the transferred shares.

Song Yi did not give Lee Soo Man a chance to bargain. "How about this, I will give President Lee two options. First, Shinya will buy 4.8% of SM Entertainment shares at a price 5% higher than the current share price. This 4.8% sales ratio will be divided among President Lee, Director Kim Young Min, and Director Nam So Young."

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

"If a cooperation agreement is reached between SM Entertainment and Shin Asia Media, it will be a major positive for 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 long exceeded the one-year lock-up period. You can sell the stocks to make a profit, but we at Shin Asia will have to continue to hold them for a long time." Kim Hee-won added.

Kim Young-min and Nam So-young had an idea in their minds. After hearing what Song Yi said, if Shin-Asia bought 4.8% of the shares, and 1.8% of them were sold by Kim Young-min and Nam So-young together, they could cash in about 3 billion won, which would give each of them 1.5 billion won.

Moreover, after Shin Asia acquires SM Entertainment, it can also help SM Entertainment stabilize its stock price, and Lee Soo-man and the other two can continue to sell their shares to make a profit.

Lee Soo Man felt that even if Shin Asia held 4.8% of the shares, it would not be able to cause any trouble in SM Entertainment. As long as the Shin Asia group did not enter the company's board of directors, it would not threaten his control.

Lee Soo-man, Kim Young-min and Nam So-young briefly discussed for a few minutes and decided to choose the first acquisition plan.

"On behalf of SM Entertainment, I welcome Shin-Ah to become a shareholder of the company. We also welcome Chairman Song, Executive Director Kim and Ms. Liu to come to SM Entertainment at any time to provide guidance." Lee Soo-man and Song Yi clasped hands tightly.

Since Shinya decided to invest in SM Entertainment, the rest of the things became simple. Seo Ju-hyun signed a 6-year contract with SM Entertainment and will re-sign after the contract expires.

According to Lee Soo Man's estimate, the girl group that Seo Ju Hyun is in will debut around 2006 or 2007. By the time Seo Ju Hyun's first contract expires, Girls' Generation should have already debuted.

Because each member of the girl group has a separate contract, as long as Seo Ju-hyun does not reveal the inside story of the contract to other members of the team, they will not know that Seo Ju-hyun has been treated preferentially by SM Entertainment.

To be on the safe side, Song Yi called in the legal advisory team of New Asia Media, who carefully studied every clause and supplementary agreement in Seo Ju-hyun's contract to make sure that Seo Ju-hyun was not troubled by a slave contract.

Lee Soo Man thought Song Yi was making a big deal out of nothing. There were so many trainees in SM Entertainment, but no one had ever been able to sign a contract with such lenient terms. Yet Song Yi was still trying to find fault with her.

Song Yi read the breach of contract clause of Xu Zhuxian. If Xu Zhuxian's personal conditions meet the conditions for the team's debut, and she leaves the group due to her personal reasons, such as Xu Zhuxian suddenly does not want to be an artist, then Xu Zhuxian needs to pay a training fee to SM Entertainment.

Seo Ju-hyun's family and SM Entertainment each bear 50% of the training fees, and SM Entertainment will list the specific cost details of each training Seo Ju-hyun receives. For example, SM Entertainment will hire a dance teacher, vocal teacher, etiquette teacher, language teacher, etc. for Seo Ju-hyun.

Song Yi learned from Lee Soo Man that the bulk of SM Entertainment's annual expenses are divided into three main parts: one is training costs. SM Entertainment's direct and indirect investment in training is as high as 5 billion won each year.

The second is the systematic promotion costs. Artists under SM Entertainment need to participate in singing programs or other variety shows on major TV stations to increase their exposure, and 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 will spend at least several billion won to create a debut album for the group. Even if it does not launch a new group in the past two years, it will still invest 2 billion won in producing music content and market research.

Song Yi knew that SM Entertainment had spared no expense in creating Girls' Generation. Each member of Girls' Generation had to train for five years.

In order to leverage the strengths of girl groups, SM Entertainment has each member receive intensive training as well as one-on-one training so that they can be competent for different roles in the team, such as who is the lead singer, who is the lead dancer, who is the face of the group, who is the comedian, etc.

This means that SM Entertainment had invested 27 million US dollars before Girls' Generation debuted. From 2007 to 2009, SM Entertainment still lost money on Girls' Generation. After the hit song "GEE" in 2009, Girls' Generation contributed 100 million US dollars in revenue to SM Entertainment in the four years from 2009 to 2012.

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

From the time a trainee debuts, SM Entertainment gets 97% of the profits, and the artist gets 3%. For domestic commercial performances and albums, SM Entertainment and the artist split 90:1. Advertising endorsements are relatively friendly, with SM Entertainment and the artist splitting 40:60, and the pay for film and television dramas is also 40:60. Overseas activities and albums are split 30:70.

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

Because Song Yi can arrange advertising endorsements and film and television dramas for Seo Ju-hyun, SM Entertainment is like picking up money for free from Seo Ju-hyun. Therefore, the advertising endorsements and film and television drama remuneration split ratio between Seo Ju-hyun and SM Entertainment is 70:30.

As for the income from albums, commercial performances and concerts, Seo Ju-hyun has not debuted yet, so there is no need to rush to adjust. By then, Shinya may have become the largest shareholder of SM Entertainment, and it will be Song Yi who has the final say on how to adjust.

Liu Huiying also added a clause that if there was a conflict between company activities and school courses during Xu Zhuxian's trainee period, she should focus on studying. Nan Zhaoying didn't want to agree at first, but Jin Yingmin stopped her immediately.

For SM Entertainment, they just want to find a reason to establish a long-term cooperative relationship with Shinya. As for whether Seo Ju-hyun can finally debut from SM Entertainment, it is actually not important.

The training expenses that Lee Soo Man just mentioned are actually inflated. SM Entertainment inflated the company's expenses to cope with future investments, so that it doesn't have to pay dividends to the company's shareholders. Only Lee Soo Man, Kim Young Min and Nam So Young know how profitable SM Entertainment is.

Lee Soo-man, Kim Young-min and Nam So-young all set up their own companies, established exclusive partnerships with SM Entertainment, and used various names to extract fees from SM Entertainment.

For example, SM Entertainment hired dance teachers Pop&Tattoo, Poppin' Pete and Skeeter Rabbit to teach Kim Hyo-yeon one-on-one, but they did not receive their salary directly from SM Entertainment, but from Nam So-young's affiliated company, just like a labor dispatch company. This is why SM Entertainment has an annual revenue of hundreds of billions of won, but the company's book profit is pitifully small.

Does Song Yi know about Lee Soo Man's tactics? Of course he knows. Before his rebirth, Song Yi worked in a Chinese investment bank and invested in many companies. How could he not know the ins and outs of it?

Some company founders buy houses in their own name in order to get money from the company. Then they rent the house to the company, and the company pays the rent to him every month, but he still lives in the house. Some bosses even use the company's account to buy toothpaste, paper towels and underwear. It can be said that every expense of his daily expenses will not be paid from his personal income, and everything is paid by the company.

Lee Soo Man also thought so. Even if Seo Ju Hyun didn't make her debut, SM Entertainment would at most lose one or two million dollars in training fees. It was the company's money that was lost, not Lee Soo Man's money, so he didn't feel bad.

He can get 5.04 billion won in cash at once by selling 3% of SM Entertainment's shares. What's wrong with him? Kim Young-min and Nam So-young can also make a profit of 1.512 billion won by selling 0.9% of SM Entertainment's shares each.

Lee Soo Man believes that this cooperation is very pleasant. SM Entertainment has added a very outstanding trainee, and through Seo Ju-hyun's relationship, he has boarded the big ship of the New Asia system, which can be said to be killing two birds with one stone.

Others don't know the strength of the New Asia faction, so how could Kim Young-min not know it? Song Yi-guang has no fewer than ten members of parliament who frequently visit him, including Song Woo-seok, Park Dong-ho, Xia Mi-ae, Zhou Dong-young, and Zhou Meng-jun.

Song Yuxi is running for the New Millennium Democratic Party. According to the latest polls, he has a high chance of winning. Song Yuxi has said more than once that Song Yi is like a nephew to him. Anyone with a discerning eye knows that inshcool has been cheering for Song Yuxi's campaign.

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

Even if Song Yuxi is not elected, he can still become the leader of the opposition party in South Korea. In South Korean politics, the ruling party and the opposition party check and balance each other. Although the ruling party has the upper hand, 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 has the strong support of most of the Hyundai family behind him.

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, and it was convenient for him to increase or reduce his holdings.

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

Song Yi gave up on publicly acquiring SM Entertainment shares and instead acquired SM Entertainment shares internally from Lee Soo Man and the other two. In fact, this was to lower Lee Soo Man's vigilance and also to set a trap for him.

The Shin-Asia Group is now putting on a good-guy face, neither nominating directors nor interfering with the management of SM Entertainment. It only asks Lee Soo-man and others to take good care of Seo Ju-hyun, who is under Song Yi's care, in the company.

Lee Soo Man will naturally use the Like Project to make various excuses to get money from SM Entertainment. When he is investigated by the Korean prosecutors next year, he will know that the New Asia Group is a capital crocodile that eats meat without spitting out bones. Song Yi took the initiative to visit Lee Sang-dae, the chief prosecutor of the Seoul District Prosecutor's Office, after the New Year. Lee Sang-dae reached an agreement with Song Yi under the suggestion of Zhong Xiaotong. As long as Song Yuxi wins the election of the New Millennium Democratic Party, the prosecutors will release Zhou Mengxian, and Zhou Mengxian will eventually be sentenced to one year suspended.

If Lee Soo-man falls into the hands of the Seoul District Prosecutors' Office, I'm sorry, but the Seoul Prosecutors will definitely get substantial evidence of Lee Soo-man's false capital increase.

Song Yi will definitely help others and help Lee Soo Man leave the Procuratorate. It is also very reasonable for Lee Soo Man to return the favor and transfer his personal shares to the New Asia Group.

After the New Asia Group becomes the major shareholder of SM Entertainment, Song Yi will immediately ask SM Entertainment to stop paying labor fees to Like Planning. They will definitely spit out all the money they have taken from me.

Song Yi has no intention of kicking Lee Soo Man out of SM Entertainment. In fact, he is still quite optimistic about the duo of Lee Soo Man and Kim Young Min.

Lee Soo-man and Kim Young-min have 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 with the music production process.

In the early planning stage of SM Entertainment, the management will have a full discussion with the production team. After entering the album production stage, the management will fully trust the production team. In the early days, SM Entertainment relied on Yoo Young-jin for composition, but now SM Entertainment has sent an A&R team to discover composers overseas. At its peak, SM collaborated with 50 composers. TVXQ's "Mirotic", SHINee's "Love like Oxygen", and f(x)'s "Hot Summer" were all composed by Danish composer Thomas Troelsen.

For Song Yi, even if he became the majority shareholder of SM Entertainment, he still needed Lee Soo Man to check the company's music works. After all, Song Yi was a layman in music and had only listened to a few hundred Korean songs.

Lee Soo Man is an excellent music production director, but not a qualified company boss. So if Shin-A buys SM Entertainment in the future, Lee Soo Man working for Song Yi is the best combination. If Lee Soo Man is unwilling to obey Song Yi's arrangement, then Song Yi has no choice but to send Lee Soo Man in again. He believes that Lee Soo Man must understand what it means to be a hero in the right time.

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

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

Liu Huiying thought Xu Zhuxian's question was very funny. Shinya has become a shareholder of SM Entertainment, so SM's artists can meet them whenever they want.

Song Yi was very serious, "Joo Hyun, I asked you to join SM Entertainment, not to chase stars in the company. You have to understand that no other artist in SM Entertainment has such an opportunity as you. You have to train hard and strive to become an excellent actor and singer to realize your dream."

Xu Zhuxian said "Oh", she was still eager to talk. Song Yi and Liu Huiying were talking about business just now, she didn't dare to interrupt them, she could only sit next to Liu Huiying and said nothing, she almost suffocated.

"Brother Song Yi, why do you want to buy shares in SM Entertainment? This is a huge sum of money." Although Xu Xianxian didn't know the details, the figure of 8 billion won still shocked the young girl.

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

When Liu Huiying heard Song Yi say this, her face became a little stiff. She remembered that Song Yi was the boss of Jun Ji-hyun and Song Hye-kyo. If Song Yi becomes Seo Ju-hyun's boss, Seo Ju-hyun may still follow the old path of Jun Ji-hyun and Song Hye-kyo in the future. Liu Huiying is now seriously considering whether to sacrifice herself to save her daughter. Song Yi saved Kim Jong-kook from Kim Kwang-soo just to exchange Tara from Kim Kwang-soo one day. Core Contents Media is such a rubbish company that it doesn't deserve a girl group as good as Tara.

Song Yi is now investing in SM Entertainment in order to become the boss of Girls' Generation in the future. Song Yi believes that the two second-generation girl groups, Girls' Generation and Tara, will achieve greater success.

Song Yi might post a question on the Korean version of Zhihu: "What is it like to be the boss of Girls' Generation? Waiting online, feeling anxious."

Today is 6000 words, thank you all for your monthly votes, see you tomorrow 　　 　 (end of this chapter)