Entertainment Giant Appeals Court Ruling in Stock Dispute
HYBE has filed an appeal challenging a lower court decision that ordered the company to pay approximately ₩25.5 billion to former ADOR CEO Min Hee-jin, who now leads OK Records. The appeal came just seven days after the initial ruling regarding a put option (stock purchase rights) payment dispute.
According to legal sources on February 20, the entertainment company submitted its appeal on the 19th to the Seoul Central District Court’s 31st Civil Division, which had overseen the first trial. The same court had previously ruled against HYBE in a related case concerning shareholder agreement termination.
Legal Maneuvering: Along with the appeal, HYBE requested a suspension of forced execution to prevent immediate enforcement of the ₩25.5 billion payment order. This procedural step typically blocks creditor actions like asset seizure while the appeal process unfolds.
The February 12 ruling had rejected HYBE’s claim that its shareholder agreement termination was valid, while simultaneously granting Min’s counterclaim for stock purchase payment. Though filed separately—HYBE’s suit in August 2024 and Min’s in November—the court merged both cases due to their interconnected nature.
Central Issue: Contract Termination Legitimacy
The dispute centered on whether HYBE’s July 2024 termination notice was justified. The company argued that Min had planned to take NewJeans—ADOR’s sole artist group—away from the company, constituting breach of contract, breach of trust, and management rights infringement that voided the shareholder agreement and Min’s put option rights.
The court acknowledged some evidence suggesting Min explored ways to weaken HYBE’s control over ADOR and establish independent management. However, judges determined this alone didn’t constitute a material breach of the shareholder agreement.
Regarding contacts between then-ADOR executives and external investors, the court noted these discussions were “all premised on obtaining HYBE’s consent” and hadn’t progressed to actual implementation stages.
The court also examined Min’s allegations about similarities between ILLIT and NewJeans, plus claims of “album pushing” by HYBE and its labels. Judges ruled these actions fell “within the scope of managerial discretion” for protecting ADOR’s interests as CEO at the time, and didn’t constitute shareholder agreement violations.
Multiple Legal Battles Continue
HYBE and its subsidiary labels—BELIFT LAB, Source Music, and ADOR—all maintain ongoing litigation with Min:
- BELIFT LAB filed a ₩2 billion damages suit over Min’s statements about ILLIT-NewJeans similarities
- Source Music pursued ₩500 million in damages regarding claims Min interfered with NewJeans’ debut and early activities
- ADOR launched a ₩43 billion penalty lawsuit against former NewJeans member Danielle, also naming Danielle’s mother and Min for responsibility in the group’s departure and delayed return
The latter case has been assigned to the same 31st Civil Division handling this stock payment dispute.