Following former ADOR CEO Min Hee-jin’s (now CEO of OK Records) victory in the put option lawsuit, HYBE has reportedly deposited collateral with the court to prevent the provisional execution of the judgment.
According to News1 on the 25th, HYBE deposited 29.25 billion KRW in judicial guarantee collateral with the Seoul Central District Court.
Previously, the 31st Civil Division of the Seoul Central District Court (Chief Judge Nam In-soo) held a hearing on the 12th to pronounce judgment on the lawsuit filed by HYBE against Min Hee-jin seeking confirmation of the termination of the shareholders’ agreement, and the lawsuit filed by Min Hee-jin against HYBE related to the exercise of the put option.
At the time, the court ruled in favor of Min Hee-jin, stating, “HYBE’s claim is dismissed, and HYBE shall bear the litigation costs. Furthermore, Min Hee-jin’s exercise of the put option is justified, and 25.5 billion KRW shall be paid.”
As a result of the judgment, Min Hee-jin applied for the seizure and collection order of HYBE’s bond (deposit account). However, HYBE submitted an appeal against the stock trading price lawsuit and simultaneously applied for a stay of execution, which the court accepted, suspending the compulsory execution.
Typically, in civil lawsuits, the losing party can apply for a stay of execution to prevent the provisional execution of the judgment. Unless there are special circumstances, the court often grants this request, conditioned on providing security, such as depositing a certain amount in cash or issuing a surety bond.
HYBE and Min Hee-jin have been in conflict since April 2024 due to allegations of attempted usurpation of management control and discriminatory treatment of NewJeans.
With the first instance court ruling in favor of Min Hee-jin, Min Hee-jin held an emergency press conference on the 25th and proposed to HYBE that she would forgo the 25.6 billion KRW put option in exchange for resolving all disputes related to NewJeans. HYBE has not yet commented on Min Hee-jin’s proposal.
