The parties are sharply divided over the put option and the timing of the contract termination.
The ruling is expected to have significant implications for the K-POP industry.
The Seoul Central District Court will announce the verdict regarding the shareholder agreement dispute between HYBE and former Adore CEO Min Hee-jin on February 12 at 10 AM. This case centers on Min’s guaranteed position as CEO for five years and a put option within the shareholder agreement. The put option allows Min to sell her shares at a predetermined price, potentially receiving about 26 billion won, depending on the court's interpretation of the contract termination date. Min asserts that the termination should be recognized as November 2024, correlating with when NewJeans members ended their contracts with Adore, while HYBE argues that the agreement had effectively ended in July due to Min's actions. Both parties are maintaining that the opposing side is responsible for the contract breach, raising anticipation for the court's ruling.
This case embodies a crucial contradiction between HYBE and Min Hee-jin regarding the timing of the termination of their shareholder agreement. The presence of the put option not only highlights the economic stakes at hand but also points to broader implications on shareholder rights and responsibilities. A ruling in favor of Min could impose a significant financial burden on HYBE, potentially shaping the company’s management strategies and Min's future endeavors. Thus, the outcome of this lawsuit is poised to resonate throughout the K-POP industry, transcending mere contractual disputes.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: Song Sun-mi
