This occurred after Lee Soo Man sold his shares in SM Entertainment to HYBE. The clause in question prevents Lee Soo Man from starting a similar competing business for a designated period. Despite Lee Soo Man's persistent requests to remove the clause, HYBE has refused to do so.
Lee Soo Man was reportedly upset by HYBE's"betrayal" and has requested the removal of the non-compete clause. However, HYBE argues that their withdrawal from acquiring SM Entertainment is not connected to the contract with Lee Soo Man and that they are not legally obligated to lift the clause.
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