Min Hee-jin, former ADOR CEO and current OK Records head, has prevailed in first-instance rulings on two interconnected lawsuits against HYBE. The court rejected HYBE’s bid to void their shareholder agreement and mandated payment for exercised put options totaling around 28.6 billion Korean won.
Court Ruling Details
The Seoul Central District Court’s Civil Division 31, presided over by Chief Judge Nam In-soo, dismissed HYBE’s request to confirm termination of the shareholder agreement against Min Hee-jin. Simultaneously, the panel upheld Min’s claim seeking stock purchase payment from HYBE.
Judges ordered HYBE to disburse 25.5 billion won to Min Hee-jin, 1.7 billion won to former executive Shin, and 1.4 billion won to former director Kim. This decision stems from put options exercised under the agreement.
No Evidence of Major Contract Breach
The bench determined no “material contract violation” occurred on Min’s side prior to the put option activation, precluding agreement termination. While acknowledging Min’s team contacted investors about potential ADOR independence, the court viewed these efforts as contingent on HYBE’s approval.
Allegations including Min’s critiques of ILLIT as a NewJeans imitation, claims of urging record sales manipulation, media responses, and litigation preparations failed to qualify as serious breaches. HYBE’s assertions tied to its own call option exercise also lacked merit.
Dispute Origins and Timeline
HYBE and Min formalized a business pact right after ADOR’s November 2021 launch, followed by a dedicated shareholder agreement in March 2023. The latter fixed put option valuations at 13 times ADOR’s prior two-year average operating profit, covering 75% of Min’s stake.
HYBE initiated legal action in July 2024, accusing Min of plotting a NewJeans artist poach in violation of terms. Min countered in November 2024, affirming the agreement’s validity during her put option exercise. The court merged proceedings due to overlapping contract validity questions.
