Court Rules in Favor of Min Hee-jin in Put Option Dispute With HYBE

A Seoul court has ruled in favor of former ADOR CEO Min Hee-jin in her high-profile legal battle with HYBE, dismissing the company’s claim to terminate their shareholder agreement and ordering HYBE to pay approximately 25.5 billion KRW (about $19 million) related to her put option rights.

On February 12, the Seoul Central District Court’s Civil Division 31 rejected HYBE’s lawsuit seeking confirmation that its shareholder agreement with Min had been lawfully terminated. The court also upheld Min’s counterclaim, recognizing her right to exercise a put option under the existing contract and demanding payment from HYBE.

Contract Termination Claim Rejected

At the center of the dispute was whether Min’s alleged attempt to explore ADOR’s independence including discussions about potential external investment and restructuring scenarios constituted a “serious breach” sufficient to terminate the contract.

The court acknowledged that Min had reviewed possible independence plans, citing internal messages and investor contact discussions. However, it concluded that the evidence did not demonstrate actual execution or concrete steps that caused material harm to the company.

“The termination of a contract requires a level of breach serious enough to make it impossible to achieve the contract’s purpose,” the court stated. It found insufficient proof that ADOR suffered real damages or that the shareholder relationship had irreparably collapsed.

Put Option Recognized as Valid

Because the contract was deemed valid and intact, the court ruled that Min’s put option rights allowing her to sell her shares under specific conditions remain enforceable. HYBE was therefore ordered to pay the corresponding amount.

HYBE had previously argued that Min’s actions destroyed trust and justified contract termination. The court disagreed, noting that “loss of trust alone does not automatically meet the threshold for termination.”

Broader Dispute Continues

The legal conflict began when HYBE accused Min of attempting to seize management control and potentially separate ADOR, the label behind NewJeans. Additional allegations including claims related to artist management and internal conflicts were raised during the dispute.

The court, however, stated that ADOR’s business operations and performance continued during the conflict period and that Min’s role as CEO did not appear fundamentally compromised. While this ruling represents a significant victory for Min Hee-jin, further legal proceedings remain ongoing, including separate damages claims related to artist management issues.

For now, the decision marks a pivotal moment in one of K-pop’s most closely watched corporate disputes.