ENTERTAINMENT
HYBE Appeals Court Ruling in Stock Dispute with Former ADOR CEO Min Hee-jin
On the 19th, HYBE submitted an appeal to the Seoul Central District Court's Civil Division 31 (Presiding Judge Nam In-soo). This division was responsible for the first trial of the stock purchase price claim lawsuit filed by Min Hee-jin. Along with the appeal, HYBE also filed for a stay of execution, which aims to suspend the effect of the first trial's ruling until the appeal is finalized.
Previously, on the 12th, the court ordered HYBE to pay approximately 25.5 billion KRW (around $21 million USD) to Min Hee-jin for the put option (stock purchase right). The court also specified payments of 1.7 billion KRW (around $1.4 million USD) and 1.4 billion KRW (around $1.2 million USD) to Shin, a former deputy CEO, and Kim, a former director, respectively, who had notified the exercise of the put option alongside Min Hee-jin.
In contrast, HYBE's lawsuit against Min Hee-jin to confirm the termination of the shareholder agreement was dismissed. Although these are separate lawsuits, the validity of the shareholder agreement is a prerequisite for the exercise of the put option, so the court had been reviewing both cases concurrently.
The conflict between the parties intensified in April 2024, with allegations of management rights seizure and discrimination against the group NewJeans. In August of the same year, HYBE announced the termination of the shareholder agreement with Min Hee-jin in its semi-annual report, but Min Hee-jin responded in November by notifying HYBE of the exercise of the put option on ADOR shares.
Meanwhile, NewJeans members lost their exclusive contract dispute with ADOR. In October of last year, the Seoul Central District Court's Civil Division 41 (Presiding Judge Jeong Hoe-il) accepted ADOR's claim in the lawsuit to confirm the validity of the exclusive contract against the members.
Reported by Min-kyung Lee, TenAsia 2min_ror@tenasia.co.kr
