Rebuttal to HYBE and SM. “We are working hard to solve the problem, so there is no reason to distort it.” . .

●On the morning of the 16th, Lee Sung-soo, co-CEO of SM revealed the suspicions of Lee Soo-man's, former SM general producer, tax evasion outside the region and etc.

● To the above, HYBE explained that "We were not told about the content regarding Lee Soo-man. the claimed contents regarding SM will be terminated by the stock purchase agreement". ● In the morning of 17th, SM objected as "HYBE

s position is twisting the core issue of the tax evasion outside the region." The SM employers also issued the joint statement against HYPE.