The court ruled that HYBE must pay approximately 25.5 billion KRW to Min.
The conflict between both parties hinges on ADOR's operational performance.
[TV Daily Reporter Kim Ji-hyun] HYBE has announced its plans to appeal a first-round ruling favoring Min Hee-jin, former CEO of ADOR. On February 20, it was reported that the company submitted an appeal to the Seoul Central District Court, contesting the ruling that required it to pay approximately 25.5 billion KRW to Min.
The court had previously ruled in favor of Min, determining that HYBE must fulfill its obligations under a valid shareholder agreement, leading Min to assert his option rights that culminated in this lawsuit. The ongoing tensions between Min and HYBE reflect complex contractual issues that prompted legal resolution.
While HYBE lost a related lawsuit regarding the termination of their contract, the core disagreements surrounding the option rights are likely to persist. Notably, the financial performance of ADOR over the past two years has become a pivotal aspect in these proceedings.
The legal battle between HYBE and Min Hee-jin transcends mere financial stakes, reflecting deeper issues. The contractual relationship between Min and HYBE embodies contrasting management philosophies and business directions, highlighting the complexities within the Korean entertainment industry. Given HYBE's extensive management of various artist groups, the shareholder agreements hold significant implications for its corporate governance.
Moreover, the importance of Min's put option stems not only from its monetary value but also from its ties to ADOR's operational performance. The option's valuation is predicated on the company's earnings, linking Min's claims to ADOR’s financial health, which could also impact the company's sustainability and market position in the long term.
Through this lawsuit, HYBE finds itself in a position to reaffirm its commitment to corporate governance and contractual transparency. As fanbase and market reactions gain increasing importance, HYBE's strategic responses to this situation could serve as a significant benchmark for the future of the entertainment industry.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TVDaily
