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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Judge orders HYBE to pay KRW 25.5 billion, rejects claims of contract breach and alleged “NewJeans poaching”
A Seoul court has ruled in favor of Min Hee-jin, former CEO of ADOR, in the first-instance trial of her prolonged legal dispute with HYBE, marking a decisive victory after more than a year and a half of litigation.
The ruling comes roughly 19 months after HYBE filed a lawsuit in July 2024 seeking confirmation of the termination of its shareholder agreement with Min. The core issue in the case was whether Min had materially breached the contract.
The court acknowledged that Min had explored measures related to ADOR’s independence. However, it stated that “such circumstances alone are insufficient to conclude that there was a material breach of the contract.”
The court also rejected HYBE’s allegations that Min had executed a plan to “poach” the girl group NewJeans from the company.
As the termination of the shareholder agreement was deemed unjustified, the court ruled that Min’s exercise of her put option—the right to require HYBE to repurchase her shares—remains valid.
Accordingly, the court ordered HYBE to pay KRW 25.5 billion (KRW 25.5 billion) to Min as consideration for the share sale under the exercised put option.
The decision represents a significant development in the high-profile dispute between the two parties, though further appeals are possible.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
