A high-stakes legal showdown between HYBE and former ADOR CEO Min Hee-jin has escalated, centering on the exercise of a put option worth approximately ₩26 billion (USD $18.8 million) and the legitimacy of a shareholder agreement termination.
The Seoul Central District Court held its first hearing on June 12, with both sides presenting opposing interpretations of the contractual termination timeline and its implications for stock redemption rights.
Timeline Disputed: When Was the Contract Terminated?
At the heart of the dispute lies the timing of HYBE’s termination of its shareholder agreement with Min. HYBE claims it sent a formal termination notice on July 8, 2024, citing violations by Min, while Min asserts she never accepted the termination and formally exercised her put option in November, shortly before resigning from ADOR.
The contract allows Min to request HYBE to repurchase 75% of her shares at a price calculated using 13 times the average operating profit of ADOR in 2022 and 2023—a figure that adds up to ₩26 billion.
Allegations of Tampering and Contract Breach
HYBE’s legal team accused Min of engaging in “tampering” and covertly plotting to extract NewJeans—ADOR’s flagship girl group—from the label. HYBE argued that Min’s actions, including contacting the parents of NewJeans members and instructing staff to impersonate them in protest emails to HYBE, constituted a serious breach of contract.
“She directed messages to be written in the voice of Hyein’s father and using the name of Danielle’s mother,” HYBE claimed. “Such deception and manipulation amount to betrayal and provide just cause for termination.”
In contrast, Min’s defense challenged the validity of HYBE’s contract termination, stating that the tampering accusation cannot apply since she only resigned and exercised the put option after the alleged events. “Termination came after the fact,” her side argued, “so tampering doesn’t apply.”
Disputed Evidence and Confidentiality Battle
HYBE presented a PT defense and KakaoTalk messages in court as evidence, claiming they detail conversations between Min and a former deputy director regarding the planning of the “NewJeans extraction.”
Min’s legal team objected to the public disclosure of these materials, raising concerns over privacy and the illegality of evidence collection, especially if such content were leaked to the media.
“PT files are not normally distributed to the media right after court,” Min’s side protested. “We are also concerned about how this could affect public perception.”
HYBE countered by arguing that the KakaoTalk messages were lawfully obtained and that the defendant had also previously leaked material to the media, including full names of HYBE employees.
The next hearing is scheduled for September 11 at 3:00 PM KST, where HYBE will formally present its prepared PPT argument. Witness testimony is also expected.
As tensions escalate, the case continues to draw intense public and industry scrutiny, not only for its financial implications but also for its impact on NewJeans, one of K-pop’s fastest-rising acts.
Source: https://kbizoom.com/hybe-min-hee-jin-stock-dispute-legal-battle/