Lee Soo Man signed a contract that banned him from the industry for a interval of time.
When Lee Soo Man offered his shares in SM Entertainment to HYBE, he signed a “no competitors clause.” This ban on competitors clause is a generally used clause that prohibits those that promote shares or companies from doing enterprise in the identical industry for a sure interval of time.
According to funding banking industry insiders, Lee Soo Man had just lately requested HYBE to launch him from this clause. He signed the clause in February 2023 when he offered his 14.8% stake in SM Entertainment for ₩430 billion KRW (about $325 million USD) to HYBE. Although HYBE ended up promoting its shares to Kakao Entertainment after pulling out of the merger and acquisition, the contract between Lee Soo Man and HYBE nonetheless stands legitimate.
HYBE has denied Lee Soo Man’s request for the discharge of the clause. It appears that Lee Soo Man needs to make a return to the industry however is unable to.
HYBE has said that “the withdrawal from the acquisition is a matter that has nothing to do with the contract with Lee Soo Man.” Hence, there is no such thing as a authorized obligation for them to elevate the ban. On the opposite hand, insiders report that Lee Soo Man felt that HYBE’s withdrawal was a stab within the again and therefore requested a elevate on the ban.
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