Min Hee-Jin WINS $18 Million Lawsuit Against HYBE: What Does This Mean For Former ADOR CEO And K-Pop

Former ADOR CEO Min Hee-Jin was granted a huge respite against her looming legal dispute with HYBE. On February 12, the Seoul court ruled in favor of Min in the high-profile case meant to confirm termination of the shareholder agreement and Min's counterclaim seeking payment for the stock purchase price related to the exercise of a put option. The ruling is now being seen as a major development in one of K-pop's most-watched corporate legal battles. The shareholder agreement between HYBE and Min Hee-Jin included a 5-year term for Min as ADOR CEO and internal director. HYBE stated that the shareholder agreement with Min already ended before she was dismissed, and the decision to remove her was independently taken by the board at ADOR, and was not

related to HYBE in any manner.

Court rules in favour of Min Hee-Jin

The 31st Civil Division of the Seoul Central District Court held a ruling hearing on the matter. Min argued that HYBE wrongfully terminated this agreement and refused to honour her contractual right (put option) to sell her ADOR shares back to HYBE for a calculated payout.According to several Korean media outlets, the judge found that HYBE's attempt to terminate the shareholder agreement with Min was not valid and that she was entitled to exercise her contractual right allowing her to sell her shares back to HYBE.

Dismissing HYBE's claims against Min, the company was ordered to bear the legal costs of the case. This means HYBE must pay Min roughly 25.5 billion KRW ($17–18 million USD) as the stock purchase amount tied to her put option.

What did court's ruling state?

Seoul Central District Court said, "HYBE's claim is dismissed, and HYBE will bear the legal costs. Furthermore, Min Hee Jin’s exercise of the put option is legitimate, and HYBE must pay 25.5 billion KRW (about $17.6 million USD)."After hearing the arguments of both sides, the court explained, "In cases involving termination grounds under a shareholder agreement, destruction of trust may qualify if it amounts to a serious breach. As HYBE holds 80% of ADOR’s shares, it may dismiss Min Hee Jin at any time. If violations were committed in order to restrict such dismissal, they may constitute grounds for removal or resignation. Damages exceeding 1 billion KRW, breach of trust, or embezzlement would qualify."

HYBE to appeal against ruling

Following the court's decision, HYBE shared its plan to appeal against the ruling. It's statement said, "We regret that our arguments were not sufficiently accepted. After reviewing the written judgment, we plan to proceed with further legal steps, including an appeal."

Min Hee-Jin Vs HYBE

The lawsuit dates back to 2024 and stems from a long-running dispute between Min and HYBE over control of ADOR, where the company accused her of attempting to take over the subsidiary, and whether HYBE could terminate a key shareholder agreement that would nullify her contractual rights. Min had denied all allegations. For the unversed, ADOR is the managing label behind the K-pop group and currently troubled NewJeans.

What does Min Hee-Jin's victory mean?

The legal win is significant considering it comes for Min Hee-Jin in validating her contractual rights against one of K-pop's largest entertainment companies, HYBE, home to K-pop icons BTS, along with SEVENTEEN, TXT, ENHYPEN, LE SSEAFIM, BOYNEXTDOOR, TWS, and rookie group CORTIS, apart from global acts like KATSEYE.The verdict however, doesn't end other related lawsuits and disputes between Min Hee-Jin and HYBE in the broader conflict.