On February 12, a Seoul court delivered its first-instance ruling in the high-stakes legal battle between former ADOR CEO Min Hee Jin (currently head of OOAK Records) and HYBE over a 25.5 billion KRW put option claim.
The Seoul Central District Court’s Civil Agreement Division 31 ruled that HYBE must pay Min Hee Jin 25.5 billion KRW. In addition, two of her former associates ex-vice president Shin and former director Kim who had also notified HYBE of the put option exercise, are to receive 1.7 billion KRW and 1.4 billion KRW respectively.
At the same time, the court dismissed HYBE’s lawsuit seeking confirmation of the termination of the shareholders’ agreement. The ruling marks a significant turning point in a legal dispute that has lasted roughly 15 months since Min exercised her put option in November 2024. For now, the first-round verdict represents a decisive victory for Min Hee Jin.
Court: “No Serious Breach of Contract”
A key takeaway from the ruling is that the court did not accept HYBE’s claim that Min had committed a “serious breach” of the shareholders’ agreement. Similar to a prior injunction case filed by HYBE in May 2024, the court acknowledged that there had been discussions about potentially making ADOR more independent. However, it concluded that such actions did not constitute a breach grave enough to justify terminating the contract.
HYBE had argued that Min attempted to take the group NewJeans out of the company, pointing to her so-called “empty shell” remark as core evidence. The court, however, interpreted the comment as referring not to “ADOR without NewJeans,” but rather to “ADOR after Min’s departure.”
Regarding her outreach to external investors, the court acknowledged that HYBE may have felt betrayed. Nevertheless, it ruled that her actions did not amount to a legally significant breach of trust or misconduct severe enough to void the shareholders’ agreement.
Plagiarism Allegations Deemed Managerial Discretion
The court also addressed Min’s earlier claims that ILLIT, under Belift Lab, had copied elements of NewJeans’ concept, as well as her concerns about alleged album-pushing practices. The judges determined that raising such suspicions did not constitute a serious contractual violation. Instead, they viewed her comments as an expression of opinion and falling within the scope of managerial discretion.
Some observers have mistakenly interpreted the ruling as a legal acknowledgment of plagiarism. However, this lawsuit focused solely on the exercise of shareholder rights and the financial obligations tied to the put option. The court did not make any determination on whether plagiarism occurred. Rather, it clarified that raising internal concerns within a company does not automatically equate to breach of contract or fiduciary misconduct.
What Comes Next?
As expected, the two sides responded very differently. Min Hee Jin stated that she respects and humbly accepts the court’s decision. HYBE, on the other hand, announced plans to appeal, signaling its intention to seek a different judgment in higher courts.
If Min ultimately prevails through the appeals process, including potential Supreme Court review, she stands to secure more than 25.5 billion KRW capital that could significantly support her plans for launching a new label and discovering fresh talent. A final legal victory would also likely strengthen her position in attracting outside investors without the burden of ongoing disputes.
For HYBE, however, the situation is increasingly urgent. The court rejected its central argument that Min attempted to seize management control. As the case moves to higher courts, HYBE will face the challenge of presenting new evidence strong enough to overturn the first-instance ruling. The outcome could have far-reaching implications not only for both parties but also for how shareholder agreements are interpreted in Korea’s entertainment industry moving forward.
Sources: Daum
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