Min Hee-jin wins put option lawsuit against HYBE; court orders payment of 25.6 billion won

News1 [Financial News] In a dispute over a shareholders’ agreement between HYBE and its subsidiary label ADOR’s former CEO Min Hee-jin, the court has ruled in favor of Min. 6 billion won as share purchase proceeds.
Civil Division 31, Seoul Central District Court, presided over by Judge Nam In-soo, on the 12th dismissed HYBE’s lawsuit seeking confirmation that the shareholders’ agreement with Min had been terminated. 6 billion won.
The dispute escalated in February 2024 when HYBE launched an audit and accused Min of attempting to seize management control. Citing KakaoTalk messages obtained during the audit, HYBE argued that Min had contacted outside investors in an effort to separate ADOR from HYBE and make it independent. Min countered that HYBE moved to dismiss her only after she raised issues that HYBE’s group ILLIT had copied NewJeans.
The key issue was a put option, or right to sell shares, set out in the shareholders’ agreement. When Min resigned as an internal director in November 2024, she notified HYBE that she would sell her shares to the company at the contractually agreed price. HYBE refused to pay, insisting the agreement had already been terminated due to Min’s alleged breaches.
The central question at trial was whether Min’s efforts to explore making ADOR independent amounted to a serious breach that undermined the essence of the contract. The court stated, "Based on the KakaoTalk messages and other evidence, it is acknowledged that Min sought ways to make ADOR independent," but added, "This remained only at the level of a conceptual plan premised on a breakdown in negotiations with HYBE, and in reality it could not have been implemented without HYBE’s consent.
" On the so-called allegations of trying to poach NewJeans members, the court found that "there is insufficient evidence to conclude that she attempted to leave while taking the members with her. " Regarding Min’s message saying, "If I leave, ADOR will be an empty shell," the court explained that this "merely referred to the fact that ADOR’s value would fall if she left," and said it was difficult to view it as an attempt to poach members.
The court further noted, "The grounds for termination asserted by HYBE are abstract or relate only to minor ancillary obligations," and concluded, "Compared with the damage Min would suffer from losing her put option if the contract were terminated, they cannot be regarded as sufficiently serious.
" Separately, in October last year ADOR won a lawsuit it had filed against NewJeans members seeking confirmation of the validity of their exclusive contracts.
scottchoi15@fnnews.com Choi Eun-sol Reporter