MIN HEE JIN
The unprecedented battle between HYBE and the former CEO of ADOR, MIN HEEJIN, described as a true “mud fight,” is finally awaiting its final verdict in court
As trust between the two parties has completely broken down, the central issue of this trial lies in whether MIN HEEJIN, the ex-CEO, will be able to exercise a put option (share repurchase right) of approximately 26 billion won (around 15 million euros) and execute a “spectacular exit.”
On the 15th, at the Seoul Central District Court, the final hearing was held regarding the “shareholders’ contract termination confirmation trial” filed by HYBE and the “put option payment claim trial” filed by the former CEO. After particularly tense exchanges between the two sides, the court set the fateful verdict date for February 12.
“We even invested our personal funds, and we were betrayed… a meticulously prepared appropriation plan” – HYBE
HYBE’s camp described the acts of the former CEO as blatant betrayal. HYBE’s lawyer emphasized that despite BANG SIHYUK investing his personal funds, transferring shares, and guaranteeing full authority, MIN HEEJIN’s camp allegedly sought to orchestrate independence by highlighting NEWJEANS, thereby harming the company. He insisted that the KakaoTalk conversations exchanged were not mere jokes, but constituted concrete “executive acts” aimed at seeking investors, which would have already nullified the shareholders’ contract, clearly asserting the refusal to pay the put option amount.
“A scenario worthy of a novel… the essence of the problem is disciplining a ‘stone that exceeds” – MIN HEEJIN
Conversely, the former CEO’s camp strongly refuted HYBE’s claims, calling their assertions “malicious storytelling.” According to them, HYBE arbitrarily manipulated and staged the KakaoTalk conversations to fabricate a fictitious framework of “share appropriation,” while no real meeting with investors had ever taken place. MIN HEEJIN’s camp defined the essence of this case as a “retaliatory attack” aimed at suppressing an independent label, arguing before the court that the former CEO had solely devoted herself to the growth of NEWJEANS and ADOR.
Depending on the outcome of the trial, the validation or rejection of the 26 billion won put option concerning the 13.5% stake of ADOR held by the former CEO will be decided. If the court rules in favor of HYBE, MIN HEEJIN will face the worst-case scenario, losing her right to a massive put option and being liable for significant contractual penalties. Conversely, if the former CEO wins, HYBE would suffer a severe blow by having to pay a considerable sum in cash.
Amid suspicions of shamanic intervention and accusations of favoritism toward service companies, this conflict, marked by a succession of revelations and considered one of the gravest in Kpop history, has now drawn the global entertainment industry’s attention to the court, awaiting the verdict on February 12.
Journalist: Shawn
Translator: Shawn
Statements collected by Sport Seoul
Source: SNS MIN HEEJIN
