Dispute within SM Entertainment arises over the end of Lee Soo Man's production contract

The dispute within SM Entertainment arose over the end of Lee Soo Man's production contract. 

According to insiders on February 6th, singer and actor Kim Min Jong who has been with SM Entertainment for 17 years rebuked the management's decision to end the production contract with Lee Soo Man. 

Kim Min Jong claimed, "Unlike their previous words that they will make the best decision for the SM family, co-CEOs Lee Sung Soo and Tak Young Joon unilaterally issued such an announcement without any internal discussion." 

Previously on February 3rd, the co-CEOs announced their plans to implement a multi-producing system including 5 production centers and multiple labels independently producing music, moving away from the current Lee Soo Man's producing system. 

Kim Min Jong continued, "I don't understand why they made such a drastic decision over the national Seollal holidays and I believe there has to be an ulterior motive in proposing salary negotiations to all departments except for Lee Soo Man's office of secretary. I don't think this new plan will neither benefit the SM family nor shareholders in the long term." 

It was reported Lee Soo Man is currently in a state of shock after the sudden announcement of the board cutting ties with him on the 3rd. He has been out of the office since the announcement and reportedly is considering voicing his opinion during the shareholders' meeting next month. 

However, many employees are also supporting the board's decision. On the anonymous employee community 'Blind', many SM employees voiced that the company needs to implement drastic changes to improve market capitalization and operating profits.   

SM Entertainment has yet to issue an official statement regarding this internal dispute.