They stated there was no breach in contract.
Koreaboo
1 hour ago
On February 12, the 31st Civil Division of the Seoul Central District Court held a ruling hearing on HYBE’s lawsuit against former ADOR CEO Min Hee Jin to confirm the termination of the shareholder agreement and lawsuit filed by Min Hee Jin against HYBE, seeking payment for the stock purchase price related to the exercise of a put option.
HYBE’s claim is dismissed, and HYBE will bear the legal costs. Furthermore, Min Hee Jin’s exercise of the put option is legitimate, and HYBE must pay ₩25.5 billion KRW (about $17.6 million USD).
— Seoul Central District Court
After stating both sides’ positions, the court stated, “In the case of termination of the shareholder agreement, breach of trust is also grounds for serious violation. Since HYBE owns 80% of ADOR’s shares, it can dismiss Min Hee Jin at any time. To prevent this, violations are considered grounds for dismissal or resignation.”
They continued, “This includes damages exceeding ₩1.00 billion KRW (about $691,000 USD) and embezzlement. Min Hee Jin can exercise the put option after three years and ten months from ADOR’s founding, and HYBE can transfer a 20% stake in ADOR, subject to a five-year employment obligation and a non-complete clause. The put option is estimated to be worth about ₩100 billion KRW (about $69.1 million USD) after 2025. The director delegation agreement allows the freedom to dismiss and terminate. Trust and financial interests are considered stronger over time.”
Meanwhile, Min Hee Jin announced her resignation as an inside director of ADOR in November 2024, and immediately notified the company of her intention to exercise a put option worth ₩26.0 billion KRW (about $18.0 million USD). She then filed a lawsuit demanding payment for the exercise, in which the total amount in dispute amounts to approximately. ₩28.7 billion KRW (about $19.8 million USD).