Min Hee-jin Files Lawsuit Against HYBE Over Put Option Dispute Worth 26 Billion Won
Jun 12, 2025
|
On the afternoon of the 12th, the first hearing of the Civil Agreement Department 31 (Chief Judge Nam In-soo) of the Seoul Central District Court will be held on the afternoon of the 12th to file a lawsuit against Hive by three people, including former CEO Min.
Former CEO Min notified Hive in November last year that he would exercise his put options on Adore shares when he stepped down as an in-house director of Adore.
A put option is the right of shareholders to ask other shareholders to purchase their company shares at a predetermined price when certain conditions are met.
According to the shareholder contract signed by former CEO Min and Hive, former CEO Min can receive the amount divided by the total number of issued stocks after multiplying the average operating profit of the previous two years (2022-2023).
Audor recorded an operating loss of 4 billion won in 2022 when Newzins debuted, but made an operating profit of 33.5 billion won in 2023, the following year. According to the contract between Min and Audor's shareholders, Min holds 573,160 shares (18 percent). Of these, 75% or 13.5% can be put options, so the amount that former CEO Min can receive through the put option event is estimated to be about 26 billion won.
The reason why the put option dispute between former CEO Min and Hive is drawing attention is that this is one of the key issues in contract litigation between shareholders. If the contract between shareholders is terminated as Hive claims, the put option will also lapse.
Meanwhile, Hive's third hearing date will also be held on the same day to confirm the termination of the contract between shareholders filed against two people, including former CEO Min.
Hive said in a semi-annual report in August last year that it had terminated the contract between former CEO Min and shareholders. Hive claimed that the contract had already been terminated when former CEO Min exercised his put option. However, former representative Min notified the termination of the contract due to Hive's breach of contract, but countered that the put option was exercised while the contract was not yet terminated.
Reporter Baek Ji-eun silk781220@sportschosun.com
silk781220@sportschosun.com
