Civil Division 31 of the Seoul Central Court rejected HYBE's request to confirm the termination of the shareholder agreement with Min Hee Jin. At the same time, the court accepted Min Hee Jin's counterclaim, determined that her right to exercise the right to sell shares was valid and forced HYBE to pay about 25.5 billion won (approximately 18 million USD). HYBE also had to bear all legal costs.
The Panel of Judges held that the termination of the shareholder agreement could only be considered when there were serious violations that broke trust between the parties. According to the court, the documents and arguments HYBE presented were not sufficient basis to conclude that Min Hee Jin had committed serious violations. Although she had considered the possibility of running ADOR independently and preparing for the situation of leaving the company, these actions did not constitute a breach of contract.
The court also recognized the validity of the messages on the KakaoTalk application submitted as evidence, because they were collected during an internal audit. However, the content of the messages is not sufficient to prove serious damage or abuse of trust as HYBE accused.
Notably, the panel of judges mentioned the controversy about the similarity between the ILLIT group and NewJeans. The court determined that the opinions reflected by artist parents and public opinion only expressed evaluation views, not enough basis to consider them to be incorrect in terms of reality or violating the contract.
The lawsuit originated in November 2024, when Min Hee Jin resigned as internal director of ADOR and announced the implementation of the option to sell shares under an agreement signed with HYBE. Under this mechanism, she received an amount equivalent to 75% of the value calculated according to ADOR's average profit in the previous two fiscal years. HYBE then announced that it had terminated the shareholder agreement because it believed that Min Hee Jin violated trust, causing the share sale right to expire.
The court's new ruling affirms Min Hee Jin's legitimate rights and rejects HYBE's arguments. Observers believe that this decision not only directly affects both sides but could also set an important precedent for shareholder disputes in the Korean entertainment industry.
