The protracted legal dispute between HYBE and former ADOR CEO Min Hee Jin shows no signs of abating, with the latest court hearing on June 12 further highlighting the deep chasm between the two parties. At the Seoul Central District Court, the third hearing for HYBE‘s lawsuit seeking confirmation of the termination of its shareholder agreement with Min Hee Jin unfolded, alongside a separate case where Min Hee Jin and two others are suing HYBE for stock purchase price related to a put option.
The Core Accusation: “Attempt to Steal NewJeans“
HYBE’s primary argument continues to center on the accusation that Min Hee Jin “attempted to steal NewJeans.” They reiterated their stance, stating,
“The plaintiff’s goal is the growth and development of ADOR. However, this goal became unattainable because of Min Hee Jin.”
HYBE alleged that Min Hee Jin “persuaded the members’ parents and issued detailed directives to release certain statements,” expressing serious concerns about her actions.
They maintained that trust was irrevocably broken, leading to the termination of the contract in July of last year. HYBE asserted,
“Min Hee Jin prioritized her own interests over NewJeans. We will prove this with the evidence we’ve submitted,”
emphasizing that if she didn’t plan a “takeover,” she should explain why their evidence is false, though the evidence cannot be publicly disclosed.
Min Hee Jin’s Defense: Timing and Contradictions
Min Hee Jin’s legal team vehemently countered HYBE‘s narrative, focusing on the timeline of events. They argued,
“The issue of the shareholder agreement termination dates to July 8. But before that, the injunction was granted in May, and the Tokyo Dome concert proceeded without issue.”
They highlighted that Min Hee Jin was dismissed in August, and the put option was exercised in November, with NewJeans not mentioning contract termination until November.
Min Hee Jin’s side accused HYBE of retroactively claiming a “takeover” by linking disparate events, stating,
“HYBE is taking events that happened much later and retroactively claiming she tried to take the group.”
They also dismissed the notion that NewJeans members had to declare contract termination for a “takeover” to occur as nonsensical and contradictory to the claim of shareholder agreement termination.
Evidence and Financial Claims at Play
A point of contention arose over the admissibility of evidence, with Min Hee Jin’s team objecting to the inclusion of private KakaoTalk messages and personal emails. HYBE, however, asserted that the evidence had already been admitted in a previous hearing.
The financial implications of the dispute are also significant. HYBE had previously terminated its shareholder agreement with Min Hee Jin in July, following a court injunction in May 2023 that prevented HYBE from dismissing her as CEO. In November 2023, Min Hee Jin notified HYBE of her intention to exercise her put option, a key component of their agreement. This option would entitle her to compensation from HYBE based on ADOR‘s operating profit, potentially amounting to approximately 26 billion KRW (around 19 million USD).
HYBE, however, contends that her put option is invalid due to her alleged contract violation and attempt to “take NewJeans and harm ADOR’s corporate value.” They pointed out that Min Hee Jin received a substantial salary of 2.7 billion KRW (~2 million USD) last year alone.
Looking Ahead: Witness Examination in September
With both sides firmly entrenched in their positions, the legal battle is expected to continue. HYBE has requested one witness to testify at the next hearing, scheduled for September 11, which will involve witness examination. Min Hee Jin’s side has not requested any witnesses.
This ongoing legal conflict, which began in April 2023 with HYBE‘s audit accusing Min Hee Jin of breach of trust and a management takeover attempt, has seen Min Hee Jin counter with accusations of alleged plagiarism of NewJeans‘ concept by other HYBE label groups.
