Min Hee-jin Faces Repayment of $3.94 Million Loan to HYBE Chairman Bang Si-hyuk

Min Hee-jin, the former CEO of ADOR, is expected to repay approximately 3.94 billion KRW (around $3.94 million USD, including interest) to HYBE Chairman Bang Si-hyuk. This development follows Min's resignation from her position as an internal director at ADOR on the 20th, effectively ending all professional ties between her and Chairman Bang, thus paving the way for the settlement of their personal financial dealings.

According to our investigation on the 21st, the personal debt between Chairman Bang and Min amounts to approximately 3.94 billion KRW as of the end of November. In March 2023, Chairman Bang personally loaned Min 3.7 billion KRW to purchase an 18% stake in ADOR. Contrary to some media reports suggesting she acquired the stake for 1.1 billion KRW, Min purchased 573,160 shares (18%) for 3.7 billion KRW. The face value of these shares is 2.8658 billion KRW, but considering the company's valuation, the purchase price is estimated at 6,700 KRW per share. The entire amount was borrowed from Chairman Bang.

This transaction was independent of any shareholder agreements with HYBE, with Chairman Bang supporting Min in a personal capacity. It is highly unusual for a company owner to personally lend money to an external recruit. In cases of personal loans rather than gifts, a loan agreement is typically drafted, with a minimum interest rate of the legal 4.6%. The 3.7 billion KRW loaned in March 2023 has grown to 3.94 billion KRW by the end of November.

The financial dealings between the two are separate from the ongoing legal dispute over the validity of the shareholder agreement between HYBE and Min. Regardless of the lawsuit's outcome, the debt remains valid. Previously, Min announced her intention to exercise a put option worth approximately 25.8 billion KRW. The recognition of this put option depends on the validity of the shareholder agreement. If recognized, Min would receive 25.8 billion KRW, allowing her to repay the loan without issue. Conversely, if Min is found guilty of breach of trust in a criminal case, HYBE could acquire her 18% stake at face value, amounting to 2.8658 billion KRW. Based on the debt amount at the end of November, Min would need to add approximately 1.07 billion KRW to fully repay Chairman Bang.

The key question is when Chairman Bang will demand repayment from Min. With their professional relationship concluded, exercising legal rights over personal financial transactions is a natural step. Chairman Bang could demand repayment and, if Min does not comply, pursue legal actions such as provisional seizure or a lawsuit for the return of the loan. Our investigation indicates that legal measures for repayment are being considered internally, suggesting it's only a matter of timing. However, a HYBE representative stated, "It's difficult to comment as this is a personal transaction."