SM Entertainment founder eyes return as non-compete nears end

With several high-profile K-pop comebacks lined up this year — including BTS, Big Bang, Exo and Wanna One — industry attention is also turning to a different kind of return: that of Lee Soo-man, widely regarded as the architect of modern K-pop.

Lee, the founder of SM Entertainment and now the key visionary behind Singapore-based A2O Entertainment, is expected to resume activities in Korea in March after a three-year non-compete clause tied to his deal with Hybe expires.

Lee agreed to the restriction in February 2023 after selling his entire 14.8 percent stake in SM Entertainment to Hybe for 422.8 billion won ($286.1 million). While barred from domestic music production, he did not step away from the entertainment business. Instead, he swiftly reestablished his operations overseas under the A2O banner.

A2O May

A2O Entertainment, headquartered in Singapore, functions as a hub connecting its US and Asian operations. Its US office in California has played a central role in artist management and music production aimed at the global market.

Lee’s first major project under A2O Entertainment was A2O May, a Chinese girl group that debuted in December 2024. To avoid violating the non-compete clause, the group has focused on activities primarily in China and the US.

That strategy has yielded results. A2O May became the first all-Chinese girl group to enter the US Mediabase Top 40 Airplay chart in April 2025 and performed at major festivals, including iHeartRadio’s Wango Tango in California. The group also collected multiple Rookie of the Year awards across China and international stages, including the 2025 Weibo Music Awards.

Despite the group’s limited ties to Korea — none of the members speak Korean fluently — Lee has not entirely ruled out his local market.

“They’re keeping all options open,” an industry official said Tuesday. “A2O May is positioned as a global girl group centered on China and the US, but Korea remains an essential market they can’t ignore.”

Lee has described the group’s sound as “Zalpha Pop,” a genre aimed at Generation Z and Generation Alpha audiences. Tracks such as “Boss,” “B.B.B (Bigger Badder Better),” “Paparazzi Arrive” and “Under My Skin” exemplify that direction, blending pop aesthetics across regions rather than targeting a single market.

New boy group

A2O May’s overseas focus does not signal Lee’s withdrawal from the Korean market. A2O Entertainment registered its trademark in Korea in May 2024 and recently established a local office in Gangnam, Seoul.

Attention is now shifting to a new boy group, tentatively referred to as A2O Soul, which is expected to debut in the second half of this year. The group, reportedly composed of Korean and Chinese members, was initially slated for a March launch alongside the opening of A2O’s Korea office and the end of Lee’s non-compete period.

“From what I understand, the group was originally planned for a March debut, but there’s been a delay,” another entertainment industry source said. “There’s still no clear outline, so the second half of the year seems more realistic.”

Unlike A2O May, A2O Soul is expected to debut officially in Korea.

Reunion with BoA?

Adding to the speculation is the recent departure of BoA from SM Entertainment after 25 years, which has fueled rumors of a possible reunion with Lee.

BoA played a pivotal role in exporting K-pop during SM Entertainment’s early years and is widely regarded as part of Lee’s inner circle, along with veteran composer Yoo Young-jin, who joined A2O Entertainment in its early stages. Last April, Lee’s niece and Girls’ Generation member Sunny also signed with A2O Entertainment, where she is currently involved in trainee development and mental-care programs.

These developments have led to speculation that BoA’s exit from SM Entertainment could align with A2O Entertainment’s Korea launch. A2O Entertainment, however, has taken a cautious stance, saying only that it “cannot confirm” such rumors.

Industry observers note that several former SM Entertainment executives have already taken up senior positions at A2O Entertainment, raising questions about where BoA might fit. Still, her work with NCT Wish reinforced her credentials beyond performance.

As the producer behind NCT Wish — a group formed through SM Entertainment’s internal survival program “Lastart” — BoA was credited with shaping the group’s softer, Gen Z-friendly image, often referred to by fans as “Wish-core.” Her involvement extended from concept development and stage direction to recording, earning the trust of fans.

While a formal move to A2O Entertainment appears unlikely at this stage, industry insiders say BoA could still play a meaningful role in the launch of A2O Entertainment’s Korea office or the debut of A2O Soul, should Lee seek trusted collaborators for his next chapter.