The Civil Agreement Division 31 of the Seoul Central District Court, presided over by Judge Nam In Soo, ruled on February 12 in favor of former ADOR CEO Min Hee Jin, confirming her exercise of a put option and ordering HYBE to pay approximately 25.5 billion won (around $1.77 million).
The case involved HYBE’s lawsuit seeking confirmation of termination of the shareholders’ agreement with Min Hee Jin, while Min Hee Jin counterclaimed for payment of the stock purchase proceeds. The court stated that the exercise of the put option is a separate matter and only serious breaches could justify terminating the shareholders’ agreement. Since no such breach was found, most of HYBE’s claims were rejected, effectively validating Min Hee Jin’s exercise of the put option.
Additionally, the court ordered HYBE to pay 1.7 billion won (approximately $1.18 million) and 1.4 billion won (approximately $970,000) to former ADOR Vice President “A” and former ADOR Creative Director “B,” respectively.
The court concluded that HYBE’s claims of serious breaches, including attempts to “take NewJeans away,” were insufficient to justify termination of the shareholders’ agreement. While acknowledging that Min Hee Jin explored ADOR’s independence, her actions did not constitute a serious breach. Regarding allegations that ILLIT plagiarized NewJeans, the court determined the claim was opinion-based rather than factual.
Following the ruling, HYBE expressed regret and stated plans to appeal, noting, “After reviewing the written judgment, we plan to proceed with further legal steps, including an appeal.”
