HYBE Wins Legal Battle Against Min Heejin, CEO Lee Jae-sang Vows Complete Support for NewJeans

The court has officially rejected Min Heejin’s bid to resume her position as CEO of ADOR, following her request for an injunction. In light of this ruling, HYBE’s CEO, Lee Jae-sang, communicated to internal staff the company’s commitment to the “normalization of ADOR.”

On October 29th, reacting to the court’s decision, Lee Jae-sang conveyed a message to employees, stating, “You may have come across the news about today’s court ruling regarding the ongoing situation. This represents a pivotal moment in the confusion that has lingered over the last seven months, clarifying our path forward to address the outstanding issues.”

He further expressed empathy towards the employees, saying, “I recognize that many of you have faced this prolonged period filled with disappointment and distress. Through this experience, I’ve been reminded that our team members, who have dedicated themselves quietly and diligently in their roles, are the foundation of our organization. I offer my heartfelt apologies and deepest thanks to each of you.”

Moreover, he mentioned, “Our company is determined to swiftly guide ADOR back to its regular operations. We anticipate significant advancements regarding one of the most critical concerns – the renewal of the producer contract for NewJeans – in the near future. Despite the challenges that lie ahead, we remain steadfast in our mission to support NewJeans in achieving even greater global recognition as artists.” This message underscores HYBE’s firm commitment to NewJeans.

In a related development on October 29th, the Seoul Central District Court dismissed the injunction filed by former CEO Min Hee-jin against HYBE regarding her reinstatement at ADOR. The court’s dismissal indicates that it rejected the claims without further judgment, effectively ruling in favor of HYBE.

Earlier, on August 27th, ADOR’s board dismissed Min Hee-jin, primarily due to the rationale that separating production and management was in line with both ADOR’s interests and the principles of a multi-label system. In response to her dismissal, Min Hee-jin filed an injunction against HYBE to ensure her reappointment as ADOR’s CEO, seeking assurance for her term as outlined in the shareholders’ agreement. HYBE countered, arguing that the shareholders’ agreement had been terminated due to Min Hee-jin’s breach, making her reinstatement as CEO unfeasible.

During the injunction proceedings on October 11th, Min Hee-jin’s representatives alleged that ▲HYBE engaged in “reverse viral marketing” against her and NewJeans, which belittled their accomplishments, and that discriminatory treatment was apparent ▲Other labels under HYBE had raised claims of plagiarism against NewJeans. They contended that there were no valid grounds for terminating the shareholders’ agreement, asserting that even if trust had disintegrated, HYBE bore the responsibility. Her team highlighted that denying her the CEO position would hinder the entertainment endeavors of NewJeans.

HYBE’s rebuttal suggested that Min Hee-jin had meticulously plotted to undermine both NewJeans and ADOR. They claimed that they first detected her disloyalty between February and March earlier this year, and by April, they had obtained proof with the former ADOR Vice President Lee Sang-woo’s approval, which revealed her plans. Furthermore, they accused her of breaching confidentiality by disclosing the original shareholders’ agreement to the media and flatly denied any claims related to plagiarism or reverse marketing.

HYBE’s statement added, “Min Hee-jin likely believed that if she could gain NewJeans’ support, HYBE would prefer to relinquish ADOR to her rather than operate without NewJeans’ active involvement,” suggesting that her strategy was not born from folly, but rather was a carefully devised plan.

The court case also revolved around the “procure” clause, which mandates shareholders to instruct directors to execute voting rights and undertake specific actions. Min Hee-jin argued that HYBE should compel the ADOR directors to appoint her as CEO due to its status as the major shareholder, while HYBE argued that this was not legally viable based on established precedents.

Consequently, the court’s dismissal of the case along with HYBE’s success in the injunction renders Min Hee-jin’s reinstatement as CEO of ADOR highly improbable.

Source: Daum

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