HYBE Loses First Trial Against Former ADOR CEO Min Hee-jin, Plans to Appeal

HYBE has announced its intention to appeal following a loss in the first trial concerning a shareholder agreement lawsuit against former ADOR CEO Min Hee-jin.

On the 12th, HYBE released an official statement expressing disappointment, stating, "We regret that our claims were not fully accepted," and added, "We plan to proceed with legal actions, including an appeal, after reviewing the judgment."

Earlier that day, the Seoul Central District Court's Civil Agreement Division 31 (Presiding Judge Nam In-soo) ruled in favor of Min Hee-jin in the lawsuit filed by HYBE to confirm the termination of the shareholder agreement and the counter-lawsuit by Min Hee-jin for the payment of stock purchase funds.

The court ordered HYBE to pay Min Hee-jin approximately 25.5 billion KRW. The put option payment was calculated based on the average operating profit of ADOR for the previous two years and Min Hee-jin's shareholding ratio.

The court acknowledged evidence from submitted KakaoTalk conversations, stating, "It can be recognized that defendant Min Hee-jin sought ways to weaken HYBE's control over ADOR and independently manage ADOR." However, the court also noted, "The fact that Min Hee-jin sought independent management of ADOR cannot be considered a significant breach of contract."

Reporter: Min-kyung Lee, Ten Asia 2min_ror@tenasia.co.kr