HYBE Responds To Min Hee Jin’s Proposal In Her Latest Press Conference

HYBE has responded to the proposal made by former ADOR CEO and current OK Records CEO Min Hee Jin.

On February 25, at a press conference held at a location in Jongno-gu, Seoul, Min Hee Jin said to HYBE, “In exchange for giving up 25.6 billion won, I propose that all ongoing civil and criminal lawsuits be immediately halted and that all disputes be concluded. This proposal includes not only myself, but also the NewJeans members, outsourced partner companies, former ADOR employees, and even the termination of all complaints and accusations directed toward the fandom that has been hurt after being caught up in this fight.”

She continued, “I hope that this decision to exchange the large sum of 25.6 billion won for other values will sublimate into the overall development and harmony of the K-pop industry. The place where HYBE and I should be is not the courtroom, but the stage of creation. I had a creative vision when I launched NewJeans. I regret that I was unable to complete it, but that is why I ask that the promise made by the current ADOR in court, ‘We will treat NewJeans well if they return,’ can become reality,” and urged that an environment be created where all five NewJeans members can gather together and freely pursue their dreams to their hearts’ content.

In response to this, HYBE stated, “We have no position.” It is interpreted as a decision to go through with various trials in the coming years.

Meanwhile, in November 2024, Min Hee Jin left ADOR and declared that she would terminate the shareholder agreement signed with HYBE. She said, “I intend to hold HYBE legally responsible for violations of the shareholder agreement. In addition, I will proceed one by one with the necessary legal measures regarding the numerous illegal acts of HYBE and its related parties,” and filed a lawsuit to claim payment for the exercise of her put option.

A put option refers to a stock sale request right, a contract in which the parties trade the right to sell certain assets at a predetermined price on or before the maturity date. The clause related to the exercise of the put option was specified in the shareholder agreement between Min Hee Jin and HYBE, along with the guarantee of her term as ADOR’s CEO (HYBE must take necessary measures, such as exercising voting rights to ensure that Min Hee Jin maintains her position as ADOR’s CEO and inside director for five years, or having a director appointed by HYBE exercise voting rights on ADOR’s board).

The ADOR put option amount is calculated by applying 13 times the average operating profit of ADOR over the most recent two years, then applying 75% of the ADOR shares held by the contracting party. According to ADOR’s 2023 audit report, Min Hee Jin exercised her call option (the right to purchase shares at a predetermined price, right of first refusal) in 2023 and purchased 18% (573,160 shares) of ADOR stock.

What do you think of HYBE’s response?

Source: (A)