72: Chapter 72 Investment

Lee Soo-man's reply came faster than expected. On Monday morning, Kim Young-jun hurried in with his phone, saying they had agreed. The time was set for Tuesday at 2:00 PM at SM Entertainment headquarters. Chairman Wang Shunyi flipped through his schedule; there was originally a video conference with Chinese distributor representatives scheduled for tomorrow afternoon at two. He crossed it out, wrote "SM Entertainment," and pushed the schedule back.

"Team Leader Kim, you're coming with me tomorrow. Are the materials ready?"

"They're ready. SM Entertainment's equity structure, financial data, artist contract templates, and the internal emails we got from that former employee have all been compiled." Kim Young-jun hesitated for a moment. "President, should we show Lee Soo-man that internal email?"

"No. That's a card in our hand, not for him to see."

At 1:40 PM on Tuesday, Chairman Wang Shunyi arrived at SM Entertainment. The car stopped in the surface parking lot. He didn't let Kim Young-jun follow him into the building, only saying, "Wait for me in the car," before heading in alone.

SM Entertainment's headquarters was larger than he had imagined. The lobby was spacious with marble floors, and giant posters of their artists hung on the walls, from TVXQ to aespa, arranged neatly. The reception staff seemed to have been notified; after confirming his identity, they led him directly to the tenth floor. The elevator doors opened to a hallway covered in thick carpet that muffled any footsteps. Various awards won by SM Entertainment—Golden Disc Awards, Daesangs, Billboard—were displayed along the walls, arranged meticulously rather than just hung randomly.

Lee Soo-man sat at one end of the conference table. Only a cup of tea sat before him—no documents, no computer. He watched Chairman Wang Shunyi walk in, not standing up, but merely tilting his chin slightly.

"President Wang, please sit."

Chairman Wang Shunyi walked over and sat opposite him. Lee Soo-man wore a dark gray turtleneck under a black suit jacket. His hair was graying but neatly combed. His eyes didn't look like those of a sixty-seven-year-old; they were bright yet deep, like water in a deep pool—still on the surface, but with something beneath.

"Chairman Lee, thank you for taking the time to see me."

"It wasn't a matter of taking time; I was the one who sought you out." Lee Soo-man took a sip of tea and set it down, the bottom of the cup clicking lightly against the table. "You said you wanted to invest in SM Entertainment, and I've agreed. But before we talk terms, I want to ask you a question first."

"Please, go ahead."

"You make instant noodles. Why do you want to invest in an entertainment company?"

Chairman Wang Shunyi had thought about this question many times. He thought about it in the office, while driving, and while eating army stew with Park Min-ji.

"Because Shunyi Foods' consumers and SM Entertainment's fans are the same people. Twenty to thirty-five-year-olds who will spend an extra thousand won for a good bowl of noodles and wait in line for three hours for a concert. Shunyi Foods has the products, and SM Entertainment has the content. When products and content are bound together, these people will both eat our noodles and follow your stars."

"Is that all?"

"There's more." Chairman Wang Shunyi paused. "I don't like the current landscape of the Korean food industry. Nongshim has stumbled, Ottogi has shrunk, and Samyang has partnered with us. The remaining large corporations are just resting on their laurels. The Korean food industry needs new growth points, and the entertainment industry is one."

"You want to do a crossover?"

"Yes. A crossover isn't just about slapping on a logo; it's about letting the product and content grow together."

Lee Soo-man listened and remained silent for a long time. His tea grew cold, but he didn't drink any more.

"President Wang, you are more direct than I expected." He finally spoke, his tone giving no hint of whether it was praise or criticism. "How much do you plan to invest? What shareholding percentage?"

"No more than five percent, with a ten percent premium over the market price. Within thirty billion."

"Thirty billion?" Lee Soo-man tapped his fingers twice on the table. "You know SM Entertainment's market value is currently 1.8 trillion. Five percent would be ninety billion. What do you mean by offering thirty billion?"

"Chairman Lee, I'm not here to buy SM Entertainment; I'm here to buy you. How much of your eighteen percent stake can you actually sell right now? Kakao wants it, and HYBE wants it too. But if they buy it, will you still be able to stay at SM? Will they let you continue running it as an artist's company?"

Lee Soo-man's fingers stopped.

"I'll buy five percent at a ten percent premium. You won't get this price from anyone else. Because others are buying shares, but I am buying you." Chairman Wang Shunyi looked at him. "Chairman Lee, I won't join the board, I won't participate in management, and I won't take sides. Your business with the other shareholders has nothing to do with me."

The conference room was very quiet. The wall clock ticked away—not loud, but very clear.

Lee Soo-man leaned back against his chair, staring at the ceiling for a few seconds, and then laughed. It wasn't a deep laugh, just a slight movement of the corners of his mouth, but the look in his eyes changed—from a deep pool to shallow water, letting light through.

"President Wang, you are an interesting man. I've been in business for forty years, and this is the first time someone has told me, 'I am buying you.'"

"Then, what is Chairman Lee's meaning?"

"Ninety billion for five percent. Forget the premium; market price is fine. But I have one condition—within three years, Shunyi Foods will not increase its stake in SM Entertainment, will not support any party in a control battle, and will not nominate board members."

Chairman Wang Shunyi looked into his eyes. "No premium?"

"No. Ninety billion, market price. Use the money you save to make co-branded products. For the first batch, use aespa's IP to make a limited edition fire chicken noodles. I want to see these noodles in SM's fan circles."

Chairman Wang Shunyi reached out his hand. "Chairman Lee, it's a deal."

Lee Soo-man shook his hand. His palm was dry, his knuckles large, and his grip was much stronger than it looked. He didn't let go immediately after grasping it, but instead applied a bit of pressure, as if confirming something.

"President Wang, you've probably seen some of SM Entertainment's artist contracts. Any thoughts?"

Chairman Wang Shunyi didn't dodge the question. "The profit-sharing ratio can be renegotiated. For overseas income, the company currently takes seventy percent while the artists take thirty. This ratio won't keep people. EXO's contracts expire next year; if a deal can't be reached, they won't renew."

"What do you think is appropriate?"

"Fifty-fifty. For the overseas income portion, fifty-fifty."

Lee Soo-man let go of his hand and took a sip of the cold tea. "Fifty-fifty... the shareholders won't agree."

"You've been doing things the shareholders don't agree with for over forty years."

Lee Soo-man looked at him and laughed again. This time the laugh lasted longer, and the curve of his mouth was wider. "President Wang, you aren't just interesting; you have guts."

After the negotiation ended, Chairman Wang Shunyi walked out of the SM Entertainment building and stood at the entrance to light a cigarette. The winter wind was strong, and it took several tries for the lighter to catch. He took a deep drag and exhaled; the smoke was torn apart by the wind and dissipated quickly.

Kim Young-jun came out of the car and ran over. "President, how did the talk go?"

"Ninety billion. Five percent. Market price. No board seat, no taking sides, no increasing stake."

"Ninety billion? That's nine billion lower than our budget?"

"He didn't want the premium. The condition is not to get involved in his family matters for three years."

Kim Young-jun was stunned for a second, then started laughing. "President, how did you negotiate that? He gave up the premium?"

"It wasn't my negotiation; he gave it up. Right now, he needs someone to stand beside him—not to help him fight, but to help him prove he hasn't lost." Chairman Wang Shunyi stubbed out the cigarette on the trash can by the entrance. "Get in the car, let's head back to the company."

In the car, he sent a message to Park Min-ji. "Talks are finished. Ninety billion for five percent."

She replied instantly. "Premium?"

"Market price."

"He gave it up?"

"Yeah."

"What conditions did you trade for it?"

"No board seat, no taking sides, no increasing stake."

There was a silence on the other end for a while. "That's not a bad trade. Those were your bottom lines anyway."

"The usual place tonight?"

"Okay."

The car got onto the highway. Outside the window was Seoul's gray sky. Kim Young-jun was flipping through his phone in the passenger seat when he suddenly said, "President, when you said 'I am buying you' just now, wasn't that a bit too blunt?"

"Bluntness is power. He's heard people beat around the bush for most of his life. When I say something direct, he actually listens."

Kim Young-jun didn't ask any more questions.

At 7:00 PM, Auntie Jiang's shop was steaming. When the army stew was served, Chairman Wang Shunyi recounted the details of the afternoon's negotiation from the beginning. After listening, Park Min-ji picked up a piece of rice cake and chewed slowly, not offering an immediate evaluation.

"What do you think of Lee Soo-man as a person?" she asked.

"Smart. Ruthless. But not dirty." He thought for a moment. "When he made those artist contracts, the terms were indeed harsh, but he didn't take the money himself. That money went into the company's accounts and was distributed to shareholders. He didn't do it for himself; he did it to protect his position. Only when he is in that position can SM Entertainment be the way he wants it to be."

"Then do you think he will change the contracts in the future?"

"He will. But not now. He'll change them when EXO renews. If he doesn't, he won't be able to keep them; if he can't keep them, the stock price will fall; and if the stock price falls, the shareholders will cause trouble. He's not looking to give up profits; he's being forced to."

She put another piece of luncheon meat into his bowl. "And you? Do you want him to be forced to give up profits, or do you want to help him stabilize his position?"

He looked at her.

"I want to keep him alive. As long as he's alive, SM Entertainment is the flag of the Korean entertainment industry. If the flag falls, the whole industry will have to be reshuffled. I don't want to see that happen."

She didn't ask any more. The soup in the pot bubbled, with rice cakes and luncheon meat tumbling inside. As the two of them ate, it started snowing again outside. Seoul's winters are long, but there seems to have been an unusual amount of snow this year.

After dinner, he drove her home. The car stopped below her building, but she didn't get out immediately.

"Sunyi, besides Kim Young-jun, who else in the company knows about you investing in SM Entertainment?"

"No one. I'll make it public once it's officially signed."

"Then when will you sign?"

"Next week. Lee Soo-man's side is already preparing the documents."

She nodded, opened the car door, and got out. After a few steps, she turned back and looked at him through the car window. The light from the streetlamp fell on her face, making her features look very soft.

"Goodnight, Sunyi."

"Goodnight."