Lee Soo-man Attempts Return to K-Pop Industry with A2O Entertainment...
Controversy Over Non-Compete Agreement with HYBE

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Former SM Entertainment Executive Producer Lee Soo-man is attempting a comeback in the K-pop industry through A2O Entertainment, sparking a new debate over his "non-compete agreement" with HYBE, signed last year.

In February last year, Lee sold his stake in SM to HYBE, agreeing not to engage in music production activities in Korea for three years.

According to the terms, Lee’s production work is restricted domestically until early 2026.

However, A2O Entertainment recently released a video of "A2O Rookies" trainees on its SNS channels on October 25, featuring the phrase "Produced by S.M.Lee," raising questions about a possible breach of the agreement.

Sources say that Lee’s team asserts that A2O’s debut of new artists does not violate the non-compete agreement.

Their stance is based on the fact that A2O is a global company headquartered in Singapore, with branches in the U.S., Japan, and China.

A2O is reportedly aiming to foster multinational idols through its overseas headquarters and branches.

The video showcased various foreign trainees under group names like "Rookies LTB" and "Rookies HTG."

Entertainment industry insiders have expressed mixed views on the situation.

One source commented,
"The interpretation and scope of the non-compete agreement could become an issue.
The key lies in defining boundaries between domestic and international markets in today’s global entertainment landscape."

Lee exited SM last year after selling his 18.4% stake to HYBE for approximately 520 billion KRW amid a management dispute.

At the time, he emphasized the importance of K-pop’s evolution into a global music genre, stating,
"K-pop must advance to become a global music genre beyond Korea."

Legal experts are advising a cautious approach to this matter.

One legal expert noted, "The geographic scope and actual impact of the non-compete agreement must be considered in full. The potential effects of global activities on the domestic market should also be evaluated."

As interest grows in Lee’s plans for A2O Entertainment, questions arise about the potential impact on the Korean entertainment industry.

Given K-pop’s expanding influence in the global market, Lee’s move sparks both hope and concerns for the industry’s future.

The industry anticipates this situation may stimulate discussions around the globalization of K-pop, the boundaries of the domestic entertainment industry, and related legal regulations.

Meanwhile, all eyes are on A2O’s future plans and HYBE’s response.

If the non-compete clause is legally challenged, it could have significant ramifications for the domestic entertainment industry.