SM Entertainment founder invests in Chinese drone maker

Lee Soo-man, founder and former executive producer of South Korea's SM Entertainment Co., has reportedly made a huge investment in the Chinese self-driving aircraft company EHang, which makes drone taxis. 

EHang on Wednesday wrote on its website that a private placement of $23 million (29.8 billion won) was made with several strategic investors led by Lee, the South Korean music producer, entrepreneur and founder of SM Entertainment, with an acquisition contract signed on the issuance of new shares.

The company called Lee the lead investor but did not disclose the amount of his investment.

EHang said it plans to cooperate with Lee in developing urban air mobility (UAM) projects in the Asia-Pacific region by using their complementary strengths. UAM is a next-generation mode of transportation more commonly called drone taxis.

"I appreciate EHang's unwavering dedication to enabling safe, autonomous and eco-friendly air mobility for the general public," Lee said. "I'm excited to embrace opportunities and contribute to its growth through investing and collaborating with EHang as a long-term investor."

"I look forward to the convergence of cutting-edge transportation technologies and popular culture to create sustainable value, and I'm proud to be part of it."

EHang is a Chinese drone manufacturer and leader in self-driving aircraft as seen by its drone taxi.

Since selling most of his SM Entertainment shares to rival entertainment company Hybe, Lee has moved on to businesses mainly abroad in environmental, social and governance (ESG) and technology.

Reports say he recently set up Blooming Grace, a private management consulting company in ESG and cultural technology, and donated 100 million won to planting trees in Mongolia.

Write to Dong-Hun Lee at leedh@hankyung.com