Hybe Weighs Appeal After Court Orders Payment in Min Hee-jin Put Option Dispute
The Seoul Central District Court ruled in favor of former Ador CEO Min Hee-jin in her put option dispute with Hybe, ordering the K-pop agency to pay 25.5 billion won ($17.6 million). This legal battle stems from disagreements over the management of Ador and the future of the K-pop group NewJeans.
The ruling upholds Min’s contractual right to sell her Ador shares back to Hybe. The court also ordered Hybe to pay a combined 3.1 billion won to two other former Ador executives, Shin and Kim, who also exercised their put options.
Hybe expressed disappointment with the court’s decision and stated that they are considering an appeal. This ongoing legal clash highlights the power dynamics within the K-pop industry and the complexities of shareholder agreements.
In an official statement released after the ruling, Hybe said it regretted that its arguments had “not been sufficiently accepted.” The company indicated it would “consider filing an appeal after reviewing the court’s decision.”
Min and Hybe have been engaged in a legal dispute since 2024, focusing on management control of Ador and issues surrounding the contracts of the popular girl group NewJeans. Hybe notified Min in July 2024 of its intention to terminate her shareholder agreement, alleging she caused damage to Ador and attempted to undermine the company’s management structure. Following this, Hybe removed Min from her position as Ador’s CEO in August.
Under a shareholder agreement signed in March 2023, Min held the right to sell approximately 13 percent of her Ador shares back to Hybe for around 26 billion won. The price was calculated according to the contract, which stipulates that she is entitled to receive from Hybe an amount equal to 75 percent of Ador’s average operating profit over the previous two fiscal years, multiplied by 13, according to Min’s interpretation.
Hybe contended that Min had already breached the agreement in July 2024 by allegedly attempting to separate NewJeans from Ador and causing reputational harm to the company. Based on this, Hybe argued it was justified in terminating the contract, which would then invalidate her right to exercise the put option.
Min countered that the shareholders’ agreement remained in effect when she notified Hybe in November 2024 of her intent to exercise the put option. She asserted that Hybe had no legal grounds to unilaterally terminate the contract. She resigned as an internal director in November before formally exercising her put option rights.
While the court acknowledged that Min had explored options to weaken Hybe’s control over Ador in order to pursue greater independence for the affiliated label, it ruled that this action alone did not constitute a serious enough breach to justify contract termination. The court’s decision is a significant development in the ongoing legal saga.
“The fact that Min discussed Ador’s potential independence with outside investors appears to have been premised on Hybe’s consent,” the court stated. “Without Hybe’s approval, such plans would have had no legal effect.”
Despite the ongoing tensions between Min and Hybe throughout 2024, the court recognized that Min had continued to fulfill her duties as CEO, including overseeing album releases in Korea and Japan. It also dismissed allegations that she breached the contract by raising concerns over similarities between Belift Lab’s girl group Illit and NewJeans, emphasizing the complexities of K-pop production and management.
Citing the significant financial losses Min would face if the contract were to be nullified, the court concluded that Hybe failed to demonstrate sufficient grounds for termination. This ruling underscores the importance of contractual obligations and the burden of proof in legal disputes.
Meanwhile, the same court is also reviewing a separate 43 billion won damages suit filed by Ador against Min, former NewJeans’ member Danielle and a member of her family over causing delays to the group’s activities and alleged damages resulting from the attempted separation. This ongoing litigation further complicates the already complex situation between Hybe, Ador, and Min Hee-jin. Stay tuned for further updates on this developing story.
