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Min Hee Jin demands 26 billion KRW from HYBE after leaving agency; files complaint to gain put option payment
Min Hee Jin has filed a legal complaint to exercise her put option rights at HYBE after abruptly leaving ADOR. Read on to know details.
The HYBE vs Min Hee Jin controversy has a breakthrough as the former ADOR CEO decided to exercise her put option rights. She filed a complaint to receive the payout estimated at 26 billion KRW after resigning as the internal director of ADOR. She initially filed the complaint a few weeks ago but HYBE contested citing that the shareholder agreement which allows her to exercise the rights, has already been terminated.
On November 20, following her resignation from ADOR, Min Hee Jin filed a new legal complaint at the Seoul Central District Court demanding the payout of her put option exercise. She took this decision just right after leaving the agency, indicating her plans to exercise her put option rights and secure financial compensation.
As per her shareholder agreement, Min Hee Jin should receive a payout of an amount equal to 75% of her stake in ADOR, calculated by multiplying the agency's profit from the previous two years by 13 times.
According to the audit report released by NewJeans' agency in April, Min Hee Jin currently owns 573,160 shares in ADOR, which is around 18%. If calculated according to her contract, she is entitled to receive an estimated 25.8 billion KRW. However, industry observers are criticizing her decision to exercise the put option now, as ADOR reported a 4 billion KRW operating loss for the year 2022, which is referenced in her claims.
Whereas, for 2023, the agency reported a 33.5 billion KRW profit. If Min Hee Jin waited until early next year before taking legal action, she could have received a much larger payout.
Meanwhile, whether the court will accept her recent petition is uncertain as HYBE has already contested citing that the shareholder agreement has already been terminated, therefore nullifying her put option. A court ruling will first decide whether Min Hee Jin can exercise her put option rights before making a legal judgment about accepting her payout claim.
On November 20, Min Hee Jin publicly announced her resignation from ADOR. She also unfollowed NewJeans on Instagram, sparking concerns about the girl group's future which has been equally embroiled in the feud with HYBE.
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