Min Hee-jin and NewJeans Gear Up for a 4.5 Trillion Won Legal Dispute with HYBE

Min Hee-jin, NewJeans, and the Legal Showdown with HYBE

On November 15, Min Hee-jin drew notable attention by sharing fan art featuring the phrase “NewJeans Never Die.” This post resonated within the fan community, particularly due to its similarities to fan art previously posted by NewJeans member Hanni last month, who had expressed her support with a heartfelt message, saying, “Good luck today, CEO! Of course, you’ll crush it.”

This art post gained even more significance amid Min Hee-jin’s ongoing legal conflict with HYBE. Earlier this month, she exercised her put option concerning her shares with the company. As per the shareholders’ agreement, exercising this option allows her to receive compensation based on a specific calculation involving ADOR’s average operating profits over the last two years. Following this formula, she stands to gain approximately 26 billion won (around 19.26 million USD), calculated from ADOR’s reported deficit of 4 billion won (~2.96 million USD) in 2022 and an operating profit of 33.5 billion won (~24.02 million USD) for 2023.

However, the payout remains uncertain as HYBE is currently contesting the shareholders’ agreement through a lawsuit filed in July, citing trust issues. The resolution of this legal dispute is crucial for determining whether Min Hee-jin can effectively exercise her put option.

Adding to the tension, NewJeans has issued a formal notification to ADOR and its CEO, Kim Joo-young. Their letter calls for immediate action regarding an internal HYBE document that suggested Min Hee-jin’s potential return as CEO and included a contentious statement implying that “New (NewJeans) can be replaced by a new team.” They are also demanding an official apology from a manager who allegedly advised Hanni to “ignore” them. The group has threatened to terminate their exclusive contract if these concerns are not addressed within 14 days.

If NewJeans proceeds with the termination of their contract with HYBE, they may face a substantial penalty exceeding 4.5 trillion won (~3.23 billion USD). To avoid this financial consequence, they will need to prove HYBE’s wrongdoing and succeed in their legal challenge. A pivotal aspect of the upcoming lawsuit revolves around whether the trust between the two entities has been irreparably damaged and who is deemed responsible.

This ongoing legal struggle poses a threat to NewJeans’ activities, potentially stalling their career momentum just as they enter their second year since debut, a critical time for any emerging artist.

In response to the formal notification, ADOR expressed on November 14, “We have received the formal letter and are currently reviewing its contents. We recognize the requests made and are committed to resolving the issue amicably, ensuring that our collaboration with the artists continues.” The situation now garners public attention as observers await a resolution that could reshape the dynamics between the involved parties.

Source: Nate

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