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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] A South Korean court has granted HYBE’s request to suspend compulsory enforcement of a put option payment to Min Hee-jin, pending the outcome of an appeal.
According to legal sources on Monday, the Civil Division 17 of the Seoul Central District Court, presided over by Judge Jang Ji-hye, approved HYBE’s application to suspend enforcement against Min, the former CEO of ADOR and current CEO of Oke Records. As a result, compulsory enforcement of the put option payment will be halted until the appellate court issues its ruling.
The decision follows a first-instance ruling on February 12 by another panel of the Seoul Central District Court, which found in favor of Min in her lawsuit against HYBE seeking payment of the stock sale price. The court ordered HYBE to pay KRW 25.5 billion (approximately USD 18.6 million) to Min as put option consideration.
The court also ordered HYBE to pay KRW 1.7 billion and KRW 1.4 billion, respectively, to a former ADOR vice president and a former director who exercised their put options alongside Min.
At the same time, the court dismissed HYBE’s separate lawsuit seeking confirmation of the termination of the shareholders’ agreement with Min. Although the two cases were filed separately, the court conducted parallel hearings, as the validity of the shareholders’ agreement was a prerequisite for determining whether Min’s put option rights were enforceable.
The court held that Min could not be deemed to have committed a material breach of the shareholders’ agreement with HYBE, and therefore concluded that the agreement remained valid at the time she exercised the put option.
The court rejected HYBE’s claims that Min had planned to terminate the exclusive contracts of NewJeans and take the group with her to pursue an initial public offering (IPO) of ADOR, as well as allegations that she raised plagiarism claims in an attempt to acquire ADOR shares at a discounted price.
Min and HYBE have been embroiled in a prolonged dispute since April 2024, centering on allegations of an attempted management takeover and claims of unfair treatment involving NewJeans.
HYBE filed an appeal against the first-instance ruling on February 19, and legal battles between the two sides are expected to continue in the appellate court.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
