A South Korean court ruled against HYBE’s attempt to terminate a shareholder agreement with former ADOR CEO Min Hee-jin, ordering the K-pop powerhouse to pay approximately 25.5 billion South Korean won (approx. USD $17.6 million) to the former executive and two other former ADOR directors
That’s according to news outlets out of South Korea on Thursday (February 12), which reported that the Seoul Central District Court dismissed HYBE’s lawsuit that sought validation of the contract termination and sided with Min in her claim for payment under a put option clause.
The court ordered HYBE to pay Min approximately 22.4 billion won, with a further 1.7 billion won going to former ADOR Vice President and 1.4 billion won to a former ADOR Creative Director.
Presiding Judge Nam In-soo ruled that Min’s actions did not constitute a material breach to justify terminating the shareholder agreement, The Chosun Daily reported.
“The termination grounds cited by HYBE are abstract or minor ancillary obligations,” the court said, as cited by Chosun. It added: “They are not significant enough to justify contract termination, especially considering the damages Min would suffer, such as losing her put option rights.”
“The termination grounds cited by HYBE are abstract or minor ancillary obligations. They are not significant enough to justify contract termination, especially considering the damages Min would suffer, such as losing her put option rights.”
Seoul Central District Court (Via The Chosun Daily)
The decision marks a significant win for Min, who founded HYBE-owned ADOR and was credited as the creative force behind the girl group NewJeans. She had been embroiled in a public feud with HYBE over control of the subsidiary.
The conflict began when HYBE launched an audit claiming Min attempted to seize control of ADOR by approaching external investors about spinning off the subsidiary. HYBE terminated the shareholder agreement in July 2024, arguing that it was not obligated to buy back Min’s shares in ADOR as part of her put option. Min, however, claimed that HYBE’s argument was not valid.
After Min was dismissed as CEO of ADOR in August 2024, she then resigned as an internal director at the label in November of that year, issuing a public letter in which she alleged that HYBE’s actions against her were retribution for her attempt to blow the whistle on misconduct within the K-pop giant. Min also alleged that another HYBE group, ILLIT, copied NewJeans.
The saga also prompted ADOR acts NewJeans to announce in late 2024 that they have left the HYBE label. However, after months of legal battle, NewJeans lost their appeal, preventing the group from pursuing independent activities without approval from ADOR.
In ruling against HYBE in its lawsuit against Min, the court said: “Although she did contact various investors for ADOR to go independent, it seems like she worked on the assumption that she would get HYBE’s approval,” according to Korea JoongAng Daily.
“Although she did contact various investors for ADOR to go independent, it seems like she worked on the assumption that she would get HYBE’s approval.”
Seoul Central District Court (Via Korea Joongang Daily)
On HYBE’s claim that Min “attempted to take NewJeans away,” the court said, according to Chosun: “There is insufficient evidence to conclusively prove an attempt to defect with the members.”
On Min’s statement that if she had left, “ADOR will be hollow,” the court reportedly ruled: “This merely stated the fact that ADOR’s value would decline if the former CEO were to leave.” Chosun said HYBE claimed Min’s statement indicated her attempt to take NewJeans and end their exclusive contracts with ADOR.
Additionally, the court also ruled that Min’s plagiarism allegations against ILLIT were valid. The court said, according to KbizoOm: “According to reports, ILLIT’s achievements immediately following their debut showed many similarities to the image of NewJeans. The parents of the NewJeans members also filed a petition concerning this matter.”
“These opinions reflect views about similarities and cannot be regarded as factual misrepresentations. Belift Lab has not presented additional evidence to prove that the two sides are dissimilar, and the controversy cannot yet be considered fully resolved,” the court added.
“According to reports, ILLIT’s achievements immediately following their debut showed many similarities to the image of NewJeans. The parents of the NewJeans members also filed a petition concerning this matter.”
Seoul Central District Court (Via KbizoOm)
However, the court noted that Min’s suspicions are considered “personal opinions” instead of “assertions of facts.”
“As the CEO of ADOR at the time, her decision to raise concerns about the similarities in order to protect the value of NewJeans was a managerial judgment made within the scope of her authority to safeguard the company’s interests.”
Post the HYBE saga, Min is moving forward with plans to debut a boy group through her new label, marking her first major project since leaving ADOR.
Korea Times reported in December that Min confirmed her new plans during an appearance on YouTube channel JTBCSHOW. There, she said she has no immediate plans to produce another girl group.
In October, Korean entertainment outlet SpoTV News reported that Min has set up a new entertainment company called ooak Co. It was officially registered on October 16 with business operations spanning artist management, music production and distribution, performance planning, and brand management.
SpoTV News speculated that Min may be positioning ooak as a potential new home for NewJeans if the court rules in the members’ favor. However, in November, all five members of NewJeans have decided to resume activities with ADOR following a court ruling that the group remains bound to their exclusive agreement with the HYBE label.
HYBE has said it plans to appeal the ruling. In a statement issued on Thursday, the company 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.”
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