(LEAD) Court orders Hybe to pay 25.5 bln won to ex-CEO of ADOR

▲ An undated file photo of Min Hee-jin, the former CEO of ADOR, a subsidiary of K-pop powerhouse Hybe (Yonhap)

(LEAD) ex-ADOR CEO-court

(LEAD) Court orders Hybe to pay 25.5 bln won to ex-CEO of ADOR

(ATTN: UPDATES with reactions from both sides in paras 6-8)

SEOUL, Feb. 12 (Yonhap) -- A court on Thursday dismissed K-pop powerhouse Hybe's lawsuit seeking to confirm the termination of its shareholders' agreement with Min Hee-jin, the former CEO of a Hybe subsidiary named ADOR.

The Seoul Central District Court also ruled that Hybe has to pay 25.5 billion won (US$17.7 million) worth of put options to Min because of the validity of the shareholders' agreement.

Hybe was also ordered by the court to pay 1.7 billion won and 1.4 billion won, respectively, to two former ADOR executives for the same reasons.

Hybe has argued that the termination of the shareholders' contract is valid because Min violated it by seeking to end girl group NewJeans' agency contract with ADOR and pushing for an IPO for ADOR.

The court ruled that Min probably sought ways to make ADOR independent from Hybe but the circumstances cannot be considered a serious breach of the shareholders' agreement.

Min expressed "deep respect" for the decision and said she would "humbly accept" it.

"I will focus all my capabilities on building a stable management environment, maximizing the value of the artist, and nurturing new talent to lead the K-pop industry," added Min, who now leads Ooak Records, an independent label.

Hybe said it will appeal the ruling, stating, "It is regrettable that our arguments were not fully accepted."

The conflict between Hybe and Min began in April 2024 and Min was dismissed as CEO of ADOR in August of that year.

Three months later, Min notified Hybe of her intent to exercise her put option. A put option is a contract that entitles the owner to sell a specific security by a set date at a set price. At that time, upon exercising her put option, Min would have received from Hybe an amount equal to 75 percent of her stake in ADOR.

In a related development, NewJeans, which Min produced, terminated its contract with ADOR, saying her dismissal represented the breakdown of bilateral trust. But a court ruled last October that the exclusive contract between NewJeans and ADOR is valid.

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