Former ADOR CEO Min Hee-jin has come under scrutiny after reports revealed that she paid 33 million KRW per month to BANA, a label run by her ex-boyfriend Kim Ki-hyun. She also allegedly promised to share part of a 25.6 billion KRW put option with him.
The controversy surfaced during the sixth hearing at the Seoul Central District Court regarding HYBE’s claim to terminate the shareholder agreement with Min Hee-jin and her counterclaim over the put option. Min Hee-jin appeared in court to defend herself.
HYBE claims that Min Hee-jin, who produced NewJeans’ music, was in a romantic relationship with Kim Ki-hyun and made excessive payments to BANA, including monthly fees and additional salaries. She also allegedly agreed to pay five percent of NewJeans’ annual album revenue as incentives. Although the contract was revised to reduce payments to Kim Ki-hyun personally from five percent of total revenue to three percent, HYBE argues that these arrangements still amounted to preferential treatment.
Min Hee-jin acknowledged the payments but stated they were made after breaking up with Kim Ki-hyun. She argued that Kim Ki-hyun was highly skilled, having produced all of NewJeans’ songs, and the payments were justified compensation rather than favoritism. She also defended the put option arrangement as a personal decision since company funds could not cover additional compensation.
Financial reports indicate that BANA received twice the total payment of all five NewJeans members in 2022 under service contracts. ADOR posted losses in the same year, yet BANA received higher payments than NewJeans, fueling further controversy.
The case arose after HYBE accused Min Hee-jin of privatizing NewJeans and ADOR, damaging the company. Min Hee-jin claimed the 25.6 billion KRW put option remained valid despite HYBE’s termination notice. Previously, NewJeans lost a lawsuit regarding their exclusive contract but chose to return to ADOR without appealing.
Min Hee-jin has recently launched a new company, OOAK, continuing her career in the entertainment industry.
Sources: Daum
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