Min Hee-jin vs. HYBE: First Court Hearing on 26 Billion Won Put Option Dispute Set for June 12
Jun 06, 2025
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The 31st Civil Affairs Department (C) of the Seoul Central District Court will hear a lawsuit on the exercise of put options filed by former representative Min on the 12th.
It will be dealt with along with Hive's previous lawsuit against former CEO Min for confirmation of termination of the contract between shareholders. The court will proceed with a parallel hearing", and both sides have agreed to this.
Former CEO Min notified Hive of his intention to exercise put options in November 2023 and demanded an amount equivalent to about 26 billion won based on contracts between shareholders. The put option exercise is calculated by former CEO Min by multiplying the average of Adore's operating profit for the previous two years (2022-2023) by 13 times and applying his own 75% stake. During the period, Adore recorded operating profit of -4 billion won and 33.5 billion won, respectively.
However, Hive insists the contract has already been terminated in July 2023. "The contract was terminated due to the loss of trust and breach of contract of former CEO Min Hee-jin," Hive said.
Accordingly, Hive's position is that the put option claim is also invalid. On the other hand, former CEO Min counters that the contract between shareholders is valid and argues that the put option clause is still in effect.
In this trial, the key issue is the timing of termination of the contract between shareholders and the effectiveness of the put option. Former representative Min stressed that the termination of the contract is much later than Hive claims, and until then, the put option was exercised on the premise of maintaining the contract. On the other hand, Hive said "A claim cannot be admitted while the contract has already been terminated."
Min said, "Apart from the lawsuit, I will hold Hive and those involved legally responsible for breach of contract and illegal audit." has also stated its position. "Hive's atrocities in 2024 are unprecedented in the history of K-pop," he said. "We entered legal proceedings under the judgment that any further efforts were a waste of time."," he stressed.
Meanwhile, in a recent lawsuit to confirm the invalidity of the exclusive contract, the members of Newzins claimed that Adore's management obligations and violated protective measures, and stressed that the termination was justified.
rightlight@sportschosun.com
