K-pop powerhouse HYBE has been told to pay the founder and former CEO of its Ador label - Min Hee-jin - $17.7 million after a court in South Korea ruled it was wrong to terminate a shareholders agreement with its former employee and business partner.
That agreement included an obligation by HYBE to buy Min’s Ador shares - at a pre-agreed multiple of a percentage of Ador’s average earnings over prior years - something it has so far refused to do on the basis the agreement was void.
Unsurprisingly Min has welcomed the ruling. According to the Korea Times, she says she now wants “to put an end to these exhausting legal disputes” and instead “surprise everyone again with great music and performances” via her new K-pop company Ooak Records. But HYBE plans to appeal.
HYBE fell out with Min in 2024, ultimately pushing her out of the CEO role at Ador, a move that prompted a big old legal battle with Ador-signed NewJeans, whose members supported the ousted founder. That legal battle was sort of settled late last year. Although new litigation involving NewJeans member Danielle, as well as Min, was then launched by HYBE in December.
This week’s ruling relates to another legal battle between HYBE and Min. Back in 2024, HYBE terminated its shareholder agreement with Min based on a claim that she had tried to seize control of Ador, in doing so breaching her contract with the company. Having terminated the agreement, HYBE then rejected Min’s request to exercise the right in her deal that obliged the company to buy her Ador shares.
In court, HYBE wanted the judge to confirm it was right to terminate Min’s shareholder agreement, while Min wanted the court to rule that that agreement was still in force and therefore HYBE should pay her for her shares. The court sided with Min.
According to Korea JoongAng Daily, the judge hearing the case concluded that while Min did contact various investors to discuss a deal that would make Ador independent of HYBE, she was doing so under the assumption that - if she got the right investors in place - she would then seek HYBE’s approval. Therefore “it is questionable whether her actions damaged or brought harm to Ador’s growth”.
Confirming that HYBE plans to appeal this week’s ruling, a spokesperson said yesterday, “it is regrettable that our arguments were not fully accepted”.