Court orders Hybe to pay around $18 million to ex-Ador CEO Min Hee-jin

The Seoul Central District Court on Thursday, Feb. 12, sided with former Ador CEO Min Hee-jin in her put option dispute with Hybe, ordering the K-pop agency to fork over 25.5 billion won ($17.6 million).

The ruling, which validates Min’s contractual right to sell a portion of her Ador shares back to Hybe, also ordered the company to pay a combined 3.1 billion won to two other former Ador executives, surnamed Shin and Kim, who like Min exercised put options.

Expressing disappointment, Hybe said it was weighing an appeal.

In an official statement released shortly after the ruling was delivered, the company said it regretted that its arguments had “not been sufficiently accepted.” The company would “consider filing an appeal after reviewing the court’s decision,” it added.

Min and Hybe have been locked in a protracted dispute since 2024 over management control of Ador and issues related to girl group NewJeans’ contracts. Hybe notified Min in July 2024 that it was terminating her shareholder agreement, claiming she had caused damage to Ador and attempted to undermine the company’s management structure. The company subsequently removed Min as Ador’s CEO in August.

Under a shareholder agreement signed in March 2023, Min held the right to sell roughly 13 percent of her Ador shares back to Hybe at around 26 billion won. The price was calculated in accordance with the contract, which stipulated that she is entitled to receive from Hybe an amount equal to 75 percent of Ador’s average operating profit over the previous two fiscal years, multiplied by 13, according to Min.

Hybe argued that Min had already breached the agreement in July 2024 by attempting to separate NewJeans from Ador and causing reputational damage to the company. On that basis, Hybe said it was justified in terminating the contract, which in turn invalidated her right to exercise the put option.

Min countered that the shareholders’ agreement remained in effect when she notified Hybe in November 2024 of her intent to exercise the put option. She maintained that Hybe had no legal grounds to unilaterally terminate the contract. She stepped down as an internal director in November, prior to exercising her put option.

While the court did acknowledge that Min had explored ways to weaken Hybe’s control over Ador to pursue greater independence for the affiliated label, it ruled that that alone did not constitute a serious enough breach to justify contract termination.

“The fact that Min discussed Ador’s potential independence with outside investors appears to have been premised on Hybe’s consent,” the court stated. “Without Hybe’s approval, such plans would have had no legal effect.”

Despite ongoing tensions between Min and Hybe throughout 2024, the court recognized that Min had continued to fulfill her duties as CEO, including album releases in Korea and Japan and dismissed allegations that she breached the contract by raising concerns about similarities between Belift Lab’s girl group Illit and NewJeans.

Citing the significant financial losses Min would face if the contract were to be nullified, the court concluded that Hybe failed to demonstrate sufficient grounds for termination.

In a separate statement, Min’s agency Ooak Records said it respected the court’s ruling and expressed hope that the lawsuit would “serve as a turning point to address unfair practices in the K-pop industry.” The agency added that Min plans to focus on her work as a creator and CEO, while Ooak Records will continue building a stable business environment and nurturing new talent in its own distinctive way.

Meanwhile, the same court is also reviewing a separate 43 billion won damages suit filed by Ador against Min, former NewJeans member Danielle and a member of her family for allegedly causing delays to the group’s activities and damages resulting from the attempted separation. /ra