In a significant legal battle over a put option valued at approximately $256 million, the first trial court has ruled in favor of Min Hee-jin, former CEO of ADOR, against HYBE. The Korea Entertainment Producers Association (KEPA) has expressed its concerns regarding this ruling.
On the 13th, KEPA released a statement expressing "deep regret" over the February 12, 2026, first-instance ruling concerning the validity and termination of the shareholder agreement between HYBE and Min Hee-jin. The association views this issue as a critical matter affecting the order and principles of the entertainment production field, beyond a mere personal dispute.
KEPA is concerned that the judiciary's decision could destabilize the foundation of the entertainment industry. "We fear that this ruling may foster distrust rather than quell the unrest in the field. More important than the 'execution' of betrayal is the 'direction' that betrays trust," KEPA stated. They further added, "This ruling sends a dangerous message that even if tampering was planned, it could be excused if not executed or discovered beforehand."
The association is particularly worried that this outcome could undermine the stability of investment contracts. KEPA emphasized, "When investment dries up, the first to suffer are creative talents and new projects. Small production companies will wither, jobs will decrease, and the diversity and competitiveness K-pop has built in the global market will inevitably decline. This ruling cannot be seen as a decision for the benefit of producers."
Furthermore, KEPA warned that maintaining contractual relationships despite a breakdown in trust could lead to a contraction in industry-wide investment. "Investment in production is not just about funding; it's a long-term declaration of trust in systems and human resources," they stated.
KEPA strongly urges that future legal proceedings, including appeals, consider the industry's unique characteristics. "In continuous relationships based on trust, there must be clear legal boundaries to rectify situations when that trust is broken. Only then can producers invest in people and capital again, nurturing the next generation of artists," KEPA emphasized.
Previously, on February 12, the Seoul Central District Court's Civil Agreement Division 31 (Presiding Judge Nam In-soo) dismissed HYBE's lawsuit seeking confirmation of the termination of the shareholder agreement against Min Hee-jin. Conversely, the court partially upheld Min's lawsuit for payment of stock purchase funds, ordering HYBE to pay her approximately 255 billion won. The court also ordered Shin Mo, former vice president, and Kim Mo, former director, to pay 17 billion won and 14 billion won, respectively.
The court determined that Min's actions did not constitute a significant breach warranting the termination of the shareholder agreement. While Min was found to have sought independent options for ADOR by contacting investors, this was interpreted as contingent on HYBE's consent. Consequently, the court concluded that the shareholder agreement remains valid and that Min's exercise of the put option is effective.
This first-instance ruling is expected to serve as a critical benchmark in the recurring tampering allegations and contract disputes within the music industry. The ruling, which focused on the execution as the core measure of contract violation, is likely to spark ongoing debates about contract stability and legal protection within the industry.
KEPA's full statement:
The Korea Entertainment Producers Association (KEPA) expresses deep regret over the February 12, 2026, first-instance ruling concerning the validity and termination of the shareholder agreement between HYBE and former CEO Min Hee-jin.
KEPA views this issue not as a mere legal dispute between specific parties but as a matter confirming the minimal order and principles that the Korean entertainment production field has maintained for decades.
KEPA has repeatedly warned that "the foundation of the industry shakes when contracts and trust collapse" whenever controversies over exclusive contract terminations and tampering allegations arise.
The association fears that this ruling may foster distrust rather than quell the unrest in the field. More important than the 'execution' of betrayal is the 'direction' that betrays trust.
Production is the result of a process, not an outcome. It takes years of time, astronomical capital, and the dedicated labor of countless staff to bring an artist team to the public. In this complex process, the strongest safeguard is the 'trust' between partners. When that trust collapses, the production field disintegrates. Teams divide, production crews deplete, and artists and fandoms are swept into the vortex of disputes.
This ruling sends a dangerous message that even if tampering was planned, it could be excused if not executed or discovered beforehand.
KEPA is particularly concerned that this ruling severely undermines the 'stability of investment contracts.' Investment in production is not just about funding; it's a long-term declaration of trust in systems and human resources. The logic that contractual relationships must be maintained despite a clear breakdown in trust forces investors to make conservative judgments, which will inevitably lead to a contraction in industry-wide investment.
When investment dries up, the first to suffer are creative talents and new projects. Small production companies will wither, jobs will decrease, and the diversity and competitiveness K-pop has built in the global market will inevitably decline. This ruling cannot be seen as a decision for the benefit of producers.
Tampering destroys the field by its mere attempt. Tampering is not just a contract dispute but an act of seizing joint outcomes and uprooting the industry's trust.
KEPA strongly urges the judiciary to deeply understand the industry's uniqueness and the realities of the production field in future proceedings, including appeals.
In continuous relationships based on trust, there must be clear legal boundaries to rectify situations when that trust is broken.
Only then can producers invest in people and capital again, nurturing the next generation of artists.
KEPA will continue to strive to establish a sound contract order and protect the production system so that the K-pop ecosystem can continue as a robust 'system' without being shaken by the deviations of specific individuals.
Lee Min-kyung, Ten Asia Reporter 2min_ror@tenasia.co.kr