The court ruled that Min did not violate the shareholder agreement, ordering HYBE to pay.
Min Hee-jin has founded a new agency, 'OOAK', and plans to produce a boy group.
HYBE has officially announced its decision to appeal the lawsuit regarding the put option against former CEO Min Hee-jin. On the afternoon of the 12th, HYBE stated, "We are disappointed that our claims were not adequately considered," and will proceed with legal actions following a thorough review of the judgment. The Seoul Central District Court sided with Min Hee-jin in its ruling. The court found that Min did not violate any shareholder agreements, thus ordering HYBE to pay the put option amount of 25.5 billion won.
While the court recognized several allegations made by Min Hee-jin, it largely dismissed HYBE's arguments. Specifically, concerning her 'hollow shell' text messages, the court ruled that they did not relate to the alleged act of taking NewJeans away. It supported Min's claim that her request to exercise the put option remained valid due to no breach of contract on her part. This legal battle began when Min Hee-jin notified her intention to exercise the put option, demanding a payment based on her shareholding rate of 75% of a figure derived from the previous two years’ average operating profit of Adore.
HYBE argued that it had already terminated the shareholders' agreement due to Min Hee-jin's attempts to privatize Adore. However, Min Hee-jin contends that her claims are valid and has opposed this. Meanwhile, Min has recently established a new agency, 'OOAK', where she is planning to produce a boy group. NewJeans, affected by this dispute, is now being reformed into a four-member group.
This lawsuit between HYBE and former CEO Min Hee-jin highlights the complexity of their relationship. The intense legal battle over the put option illustrates the extent to which trust has deteriorated between the two parties. What makes this case noteworthy is that it arose amidst a lack of clarity regarding operational issues that could significantly affect business continuity.
Min Hee-jin now has an opportunity to reaffirm her managerial abilities through this situation. The newly founded agency 'OOAK' serves as a symbol of her management skills and independent trajectory, which is likely to have a positive impact on her future career. This development holds significant meaning for fans as well, sparking anticipation for her new endeavors.
The court's ruling is not merely a legal decision but also suggests potential impacts on the stock market and the broader K-entertainment industry. Observing how ties between agencies and artists evolve amidst litigation will be crucial for assessing the future credibility and stability of the K-pop industry.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TVDaily
