A Korean court has ruled that HYBE lost its shareholder agreement lawsuit against former ADOR CEO Min Hee Jin, dismissing most of the company’s claims and stating that HYBE itself was responsible for breaking trust first. HYBE’s largest claim in their case was that Min was dismissed due to a breach of trust, suing her for this very claim.
According to the first-instance ruling, the court determined that the conflict between HYBE and Min initially remained internal through protest emails sent in early April 2024. However, the dispute became public when an exclusive media report about HYBE’s audit of ADOR was released on April 22.
The court ruled that Min Hee Jin’s press conference on the same day appeared to be a legitimate response based on her right to rebut HYBE’s claims. Judges also pointed out that HYBE launched an audit, demanded Min’s resignation as CEO, and began dismissal procedures at the same time the media report surfaced — suggesting the company initiated the public escalation.
The ruling further rejected HYBE’s key allegations, including claims that Min attempted to seize management control or “poach” NewJeans. The court acknowledged that Min explored possible scenarios for ADOR’s independence, but emphasized these were conditional plans that assumed HYBE’s consent and were never executed. As a result, they could not be considered a serious breach of contract.
Similarly, claims that Min tried to take NewJeans away from HYBE were dismissed. The court ruled her actions fell within the scope of managerial judgment and did not constitute damages to the company. Judges concluded that HYBE’s accusations largely reflected hypothetical discussions rather than concrete actions, while HYBE’s rapid audit and media exposure ultimately damaged trust.
Simply put, while Min’s exchanged messages with other executives and staff did talk about assuming autonomy and how they could do it, they were just that — all talk, no action. On the other hand, HYBE was quick to jump to action, bringing the matter public and conducting unlicensed audits. HYBE did what they accused Min of doing — damaging the trust between Min and HYBE.
The court also noted HYBE’s stock dropped significantly on April 22, 2024, stating the decline appeared linked to the dispute becoming public and the escalating media battle. In addition, the ruling highlighted Min Hee Jin’s role in ADOR’s success, estimating the label’s value could reach around ₩2 KRW (about $0.00 USD) within two years. The court compared NewJeans to BLACKPINK as one of the few benchmark girl groups at that level.
It noted Min Hee Jin’s side estimated ADOR’s market value at 0.8 to 1.5 trillion won in early 2024, referencing YG Enteratinment’s peak market cap of about ₩2 KRW (about $0.00 USD) driven by BLACKPINK before declining due to contract-renewal risk. Based on that comparison, NewJeans was estimated at around ₩2 KRW (about $0.00 USD) — assuming continued cooperation among NewJeans, Min Hee Jin, and HYBE.
Min Hee Jin’s criticism of HYBE was also accepted as evidence. In a January 25, 2024 meeting, she said that once NewJeans debuted, both internal and external teams were copying them, naming Pledis Entertainment and Belift Lab, and complained about pressure to create a “male NewJeans.”
The court cited the non-indictment reasoning in the breach-of-trust case, stating Min Hee Jin’s concerns stemmed from strong resistance grounded in creative ethics and industry practices, including album pushing and inter-subsidiary copying issues. As a result of the decision, HYBE must pay ₩25.6 billion KRW (about $17.7 million USD) in stock transaction proceeds to Min Hee Jin and related parties. All of HYBE’s claims were dismissed. HYBE has since filed an appeal though, meaning the legal battle is not over.