The court has ruled in favor of former ADOR CEO Min Hee Jin over HYBE regarding the put option (stock purchase claim right) worth approximately 25.5 billion won (approximately $1.77 million).
On the morning of February 12, the Civil Agreement Division 31 of the Seoul Central District Court (Presiding Judge Nam In Soo) ruled that Min Hee Jin should receive approximately 25.5 billion won from HYBE in the first trial of HYBE’s lawsuit seeking confirmation of termination of the shareholders’ agreement against Min Hee Jin and Min Hee Jin’s counterclaim seeking payment for stock purchase proceeds against HYBE.
The court stated, “The key issue in this case is identical to that of the preceding case. However, in this case, the plaintiff’s exercise of the so-called stock sale claim right (put option) remains a separate matter.” It continued, “Exercising the put option has the effect of terminating the shareholders’ agreement. Therefore, termination is only possible if there has been a serious breach significant enough to justify it. Accordingly, we do not accept HYBE’s claims arising from the exercise of the stock sale claim right,” effectively recognizing Min Hee Jin’s exercise of the put option as valid.
In addition to the decision regarding Min Hee Jin, the court also ruled that HYBE must pay 1.7 billion won (approximately $1.18 million) and 1.4 billion won (approximately $970,000) respectively to former ADOR Vice President “A” and former ADOR Creative Director “B.”
Regarding the key issue of whether there had been a serious breach sufficient to justify termination of the shareholders’ agreement, the court determined that it “cannot be regarded as grounds for termination.” HYBE had argued that Min Hee Jin attempted to “take NewJeans away,” causing substantial damage to the company and that it had already notified her of contract termination in July 2024, thereby extinguishing her put option rights as well. However, Min Hee Jin countered that the shareholders’ agreement was still valid at the time she exercised the put option.
The court largely accepted Min Hee Jin’s arguments while rejecting most of HYBE’s claims. While the court acknowledged that Min Hee Jin had explored the possibility of ADOR’s independence, it determined that such actions did not constitute a serious breach of duty. Regarding the claim that ILLIT plagiarized NewJeans, the court noted that HYBE had in fact provided NewJeans-related materials to BELIFT LAB and that the assertion of similarity was not a statement of fact but rather an opinion or value judgment.
Following the court’s decision, HYBE shared its intent to appeal, stating, “We regret that our arguments were not sufficiently accepted,” adding, “After reviewing the written judgment, we plan to proceed with further legal steps, including an appeal.”
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