On December 18, Min Hee-jin appeared at the Seoul Central District Court (Civil Division 31, presiding Judge Nam In-soo) for a hearing in her lawsuit against HYBE over the exercise of her put option and the payment of stock purchase proceeds. During the proceedings, Min Hee-jin directly questioned HYBE’s approach to executive rewards.
Min Hee-jin stated, “I believe HYBE handed out compensation too freely to executives,” expressing skepticism over whether rewards were truly based on performance.
When HYBE’s legal representative asked whether she had made any financial promises while recruiting former ADOR vice president Lee Sang-woo, Min Hee-jin clarified, “It wasn’t about personal financial promises it was about compensation. I’m someone who cares deeply about compensation and wanted to properly reward employees. There was no private compensation involved.”
She went on to criticize HYBE’s internal system, saying, “I didn’t think HYBE’s compensation structure was properly established. There were cases where stock options were handed out excessively.” In response, HYBE countered by questioning whether Min Hee-jin considered her own stock options excessive or reasonable.
Min Hee-jin firmly replied, “That depends on ability. When I used the word ‘excessive,’ I was questioning whether some label heads received compensation because of personal ties with Chairman Bang Si-hyuk rather than actual performance.” She added, “My compensation was reasonable. If anything, it may have been insufficient rather than excessive.”
Min Hee-jin further emphasized that compensation should be based on clear performance evaluations, stating, “I don’t know if achievements were properly assessed before rewards were given. Right now, it feels like compensation is simply being distributed without enough justification. I believed it was my responsibility to secure fair rewards for my team.”
The dispute centers on Min Hee-jin’s put option notice, which she submitted to HYBE in early November last year regarding her ADOR shares. Under the shareholder agreement, the relevant evaluation period covers 2022–2023. ADOR recorded an operating loss of 4 billion KRW in 2022 and an operating profit of 33.5 billion KRW in 2023. The 2022 loss is attributed to the fact that NewJeans, ADOR’s only artist at the time, debuted in July of that year.
According to ADOR’s audit report released in April last year, Min Hee-jin holds 573,160 shares (18%) of ADOR. Based on this, the amount she could receive through the put option is estimated at approximately 26 billion KRW.
HYBE argues that the shareholder agreement was terminated in July, rendering the put option invalid. Min Hee-jin, however, maintains that there was no breach of contract on her part and that HYBE’s termination notice itself holds no legal effect.
As the legal battle continues, Min Hee-jin’s remarks have reignited debate over fair compensation, performance-based rewards, and governance within HYBE’s multi-label system issues now firmly under the spotlight as the court deliberates the case.
Sources: Daum
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