“Possibility of lawsuit worth hundreds of billions of won” Bang Si-hyuk and Min Hee-jin’s big clash, even the worst situation is being mentioned

According to The Law Times on May 1st, legal experts predict that there is a possibility of a legal battle over hundreds of billions of won in penalty fees related to the contract between Chairman Bang and CEO Min.

ADOR announced that they will hold a board of directors meeting and a shareholders’ meeting in May. ADOR’s legal representative, Lawyer Lee Won (Sejong Law Firm), explained to reporters on April 30th, “As decided, the board of directors meeting will be held by May 10th and the shareholders’ meeting will be held by the end of May.“

The Seoul Western District Court held an interrogation date on April 30th. The interrogation was conducted on permission for HYBE to hold an interim shareholders’ meeting over the dismissal of ADOR CEO Min Hee-jin.

According to the media, the mandatory term of office in the shareholder contract CEO Min signed with HYBE is until November 2026. CEO Min can sell her 18% stake in ADOR to HYBE at a value equal to 13 times the average operating profit of the year and previous year at the time of exercise divided by the total number of issued shares.

However, CEO Min Hee-jin reportedly suggested 30 times the amount, not 13 times.

13.5% of Min Hee-jin’s shares can be exercised to put options on HYBE from the end of this year. It is highly likely that the contract required her to stay with the company during the obligatory employment period in order to exercise the put options. Therefore, if Min Hee-jin is dismissed during the contract period at the shareholders’ meeting, HYBE could save nearly 100 billion won out of the amount to be given to her.

In a related development, the legal circles believe that Min Hee-jin won’t be charged with breach of trust. However, HYBE is confident that the charge will be established, claiming that there are documents containing calculations of the amount Min Hee-jin can obtain through put options and specific information about lawsuits of rights infringement, investment companies, and public opinion campaigns. The company also emphasized that the core of the dispute is money and management rights, not breach of trust.

Among the many conflicts that will follow in the future, there is a possibility that NewJeans, which is under ADOR’s management, will be on Min Hee-jin’s side and file an injunction to suspend their exclusive contracts with HYBE. If HYBE’s stock price decline is attributed to damaging the image of their idol group NewJeans, the responsibility could extend to hundreds of billions to thousands of billions of won.

HYBE has not sued Min Hee-jin for any charges other than breach of trust. CEO Min swearing at HYBE executives at her press conference can also be sued for defamation or insult, but it should be carefully considered because “the core of the dispute is money and management rights”.