Seoul: A court on Thursday dismissed K-pop powerhouse Hybe's lawsuit seeking to confirm the termination of its shareholders' agreement with Min Hee-jin, the former CEO of a Hybe subsidiary named ADOR. The Seoul Central District Court ruled that Hybe must pay 25.5 billion won (US$17.7 million) worth of put options to Min due to the validity of the shareholders' agreement.
According to Yonhap News Agency, the court also ordered Hybe to pay 1.7 billion won and 1.4 billion won, respectively, to two former ADOR executives for similar reasons. Hybe had argued that the termination of the shareholders' contract was valid, claiming Min violated it by attempting to end girl group NewJeans' agency contract with ADOR and by pushing for an initial public offering (IPO) for ADOR.
The court found that while Min may have sought ways to make ADOR independent from Hybe, the circumstances did not constitute a serious breach of the shareholders' agreement. Min expressed "deep respect" for the decision and said she would "humbly accept" it. She stated, "I will focus all my capabilities on building a stable management environment, maximizing the value of the artist, and nurturing new talent to lead the K-pop industry." Min now leads Ooak Records, an independent label.
Hybe announced its intention to appeal the ruling, commenting, "It is regrettable that our arguments were not fully accepted." The conflict between Hybe and Min began in April 2024, leading to Min's dismissal as CEO of ADOR in August of that year. Three months later, Min notified Hybe of her intent to exercise her put option, which entitles the owner to sell a specific security by a set date at a set price. Upon exercising her put option, Min would have received from Hybe an amount equal to 75 percent of her stake in ADOR.
In a related development, NewJeans, which Min produced, terminated its contract with ADOR, citing her dismissal as a breakdown of bilateral trust. However, a court ruled last October that the exclusive contract between NewJeans and ADOR remains valid.