HYBE ordered to pay ex-ADOR CEO $17.7M after legal loss
What's the story
The Seoul Central District Court has ruled in favor of Min Hee-jin, the former CEO of ADOR, over the label's parent company HYBE. The court ordered HYBE to pay 25.5 billion Korean won (approximately $17.73 million) to Min in a case involving a put option (a financial contract that allows the owner the right to sell an asset at a predetermined price). The ruling was made on Thursday by Presiding Judge Nam In-soo of the Civil Agreement Division 31.
Details
What is the case all about?
Back in April 2024, HYBE accused Min of trying to seize control of ADOR and the girlgroup NewJeans, launching an internal audit. While Min refused the allegations, the label terminated the shareholder agreement with Min in July 2024. A couple of months later, Min was dismissed as CEO of ADOR. Then, in November 2024, Min announced she was going to exercise her put option (worth around 26 billion Korean won) and thereafter filed the lawsuit seeking payment.
Legal reasoning
'Plaintiff's exercise of stock sale claim right remains separate matter'
The court stated, "The key issue in this case is identical to that of the preceding case." It added, "However, in this case, the plaintiff's exercise of the so-called stock sale claim right (put option) remains a separate matter." The court further noted that exercising the put option terminates the shareholders' agreement and such "termination is only possible if there has been a serious breach significant enough to justify it."
Additional compensation
Court also ordered HYBE to pay 2 other executives
Apart from the ruling in favor of Min, the court also ordered HYBE to pay 1.7 billion Korean won (approximately $1.18 million) and 1.4 billion Korean won (approximately $970,000) to two former ADOR executives identified as "A" and "B." The court ruled that there was no serious breach sufficient enough to justify termination of the shareholders' agreement, rejecting HYBE's argument that Min attempted to take New Jeans away from them.
Appeal
HYBE plans to appeal the court's ruling
Following the court's ruling, HYBE announced its intention to appeal. The company expressed regret that its arguments were not sufficiently accepted and stated, "After reviewing the written judgment, we plan to proceed with further legal steps including an appeal." The case has been a significant legal battle between two major players in the South Korean entertainment industry.