The Seoul Central District Court's Civil Division 31, presided over by Judge Nam In-soo, heard both HYBE's lawsuit seeking to confirm the termination of a shareholder agreement and Min's lawsuit demanding payment for stock purchase.
HYBE's Chief Legal Officer, Jung Jin-soo, testified that Min attempted to secure excessive power through changes to the shareholder agreement. Min criticized the non-compete obligations post-put option exercise as a 'slave contract,' to which Jung responded, "If the contract is amended as claimed, the CEO would become untouchable with unchecked authority."
Jung also accused Min of raising issues about plagiarism and chart manipulation involving HYBE's girl group I-LIT, and suggested that the termination notices for NewJeans members' contracts were influenced by her.
Jung further alleged that Min had contact with Japanese investors, claiming, "During the pending NewJeans contract injunction, there was a report that Min's side translated a legal opinion stating '100% victory' into Japanese for investors." He added that although the police decided not to forward Min's embezzlement charges, the prosecution has ordered further investigation.
Min countered Jung's testimony, stating, "The allegations regarding I-LIT were not initiated by me but surfaced in online communities," and dismissed the investor contact claims as rumors without substantial evidence. She also criticized the selective disclosure of KakaoTalk conversations by HYBE, likening it to a "sensational drama."
The courtroom witnessed heated exchanges, with HYBE's side accusing Min of turning the cross-examination into a press conference, while Min retorted, "That's a lie," and accused them of perjury.
The court plans to conduct an additional hearing with Min on November 27 and conclude arguments on December 18, with a final ruling expected by late January next year.
In November last year, Min notified HYBE of her intention to exercise the put option. According to the contract, HYBE is required to pay an amount calculated by multiplying ADOR's average operating profit over the past two years by 13, reflecting 75% of her 18% stake. ADOR's operating profit was -$3 million in 2022 and $25 million in 2023, totaling approximately $19.5 million.
HYBE contends that Min's put option rights have expired due to the termination of the shareholder agreement in July last year.
Coincidentally, another court session was held the same day to determine the validity of the exclusive contract between NewJeans and ADOR. Despite two mediation attempts, no resolution was reached, and the court plans to issue a verdict next month. Currently, an injunction restricts NewJeans members from independent activities.
Choi Ji-ye, TenAsia Reporter wisdomart@tenasia.co.kr