According to investment banking industry insiders on February 17, there are three loopholes in the stock trade agreement between Lee Soo Man and HYBE which would allow the SM Entertainment founder to continue his activities as a producer.
According to the stock trade agreement signed by Lee Soo Man and HYBE on February 9, Lee Soo Man agrees not to participate in any management and producing activities for a domestic entertainment company for the next 3 years. However, there are three exceptions to this clause.
First, Lee Soo Man is still allowed to participate in management or producing activities for "special events" or "internationally". Here, "special events" stands out as a particularly subjective description. It seems likely that should Lee Soo Man wish to continue his "sustainability" initiatives like the special single "The Cure" released in December, such projects would fall under the "special events" category.
Furthermore, for such "special events" which will not be regular occurrences, Lee Soo Man does not need to gain formal approval from HYBE, as long as he documents his intentions in some form, most readily through email. So, as long as Lee Soo Man sends someone an email saying that he would like to have SM Entertainment artists participate in a special single promoting sustainability, he can do so without any legal issues.
One legal expert commented, "Most contracts of this nature would list types of music that [Lee Soo Man] would not be allowed to produce, the exact country or region in which he would not be allowed to produce, and would specify certain activities which the signer cannot partake in. Contracts usually do not have exception clauses which are more specific than the main clause. These exception clauses are highly subjective."
Lastly, Lee Soo Man is free to engage in any music producing activities outside of South Korea, including content production and design. Thus, it seems that Lee Soo Man would be free to continue producing SM Entertainment artists' content in countries outside of Korea, including Japan, China, the U.S, as well as countries like Mongolia, Dubai, and Saudi Arabia, where Lee Soo Man has made efforts to produce collaborative projects.
I'm sure HYBE's army of lawyers have already assessed that and knew what it means.