The Seoul Central District Court has upheld an injunction filed by Min Hee-jin, CEO of ADOR, against parent company HYBE Co., preventing the entertainment giant from using its voting rights to remove her from her position. This decision allows Min to continue managing the internationally acclaimed girl group NewJeans, despite HYBE’s substantial 80% stake in ADOR.
Min, who holds an 18% stake in ADOR, filed the injunction to stop HYBE from ousting her over alleged breaches of trust. The court ruled that the evidence provided by HYBE did not sufficiently justify Min’s dismissal, thereby blocking HYBE’s immediate attempt to remove her.
The court’s decision comes just a day before an extraordinary shareholders’ meeting called by HYBE to vote on Min’s dismissal. HYBE initiated an audit into Min and accused her of plotting to take over ADOR and NewJeans. Min countered by accusing HYBE’s Chairman, Bang Si-hyuk, of punishing her for criticizing ILLIT, another girl group from a different HYBE label, as a copycat of NewJeans.
Min’s legal battle with HYBE began after the company’s attempt to fire her during an ADOR board meeting on April 30, which she did not attend. Following this, HYBE called for the extraordinary shareholders’ meeting on May 31. Min responded by seeking court protection to prevent HYBE from exercising its voting rights against her.
In its ruling, the court acknowledged that while Min had discussed plans to leave HYBE with ADOR, she had not acted on these plans, which constituted an act of betrayal but not a breach of trust. However, the police investigation into the breach of trust allegations is ongoing, and new evidence could potentially lead to a different outcome.
If found guilty of breach of trust, Min could be forced to sell her shares at their face value of 3 billion won, rather than their market value of approximately 100 billion won, as per the shareholders’ agreement with HYBE.
Min’s legal representative stated that if HYBE violates the court’s ruling by terminating Min and other ADOR executives, the company could be liable for a 20 billion won forfeiture. HYBE has announced it will comply with the court order and will not exercise its voting rights at the upcoming shareholders’ meeting but indicated it would pursue further legal measures against Min.
As this legal conflict continues, uncertainty looms over HYBE’s control of ADOR and the future management of NewJeans. Both parties appear determined to stand their ground, prolonging the battle for control of one of K-pop’s rising stars.
