Min Hee-jin Faces ₩3.9 Billion Loan Repayment Deadline to Bang Si-hyuk

Transition in Leadership Marks End of Financial Ties Between Min and Bang

Following Min’s departure as an internal director of ADOR on November 20, all financial associations between her and Bang have been officially concluded. This significant change not only severed their professional relationship but also resolved their financial dealings.

Outstanding Debt: A Closer Look

As of November 21, reports indicate that the personal debt owed by Min to Bang has reached approximately ₩3.94 billion. This debt primarily stems from a loan of ₩3.7 billion, which Bang extended to Min in March 2023. The purpose of this loan was to assist Min in acquiring an 18% stake in ADOR. Contrary to earlier claims that suggested she purchased the shares for only ₩1.1 billion, Min acquired a total of 573,160 shares for ₩3.7 billion. The valuation of the shares was set at ₩6,700 per share, bringing the total purchase price to around ₩6.8658 billion, significantly higher than the face value of ₩2.8658 billion.

Nature of the Loan and Its Legal Implications

This substantial financial support was distinct from HYBE’s shareholder agreements and was granted as a personal favor from Bang to Min. It is uncommon for corporate owners to extend personal loans to their associates, particularly while hiring external parties. Generally, such loans require a formal written agreement, ideally adhering to a minimum interest rate set at 4.6%, per legal standards. As of the end of November, accrued interest has pushed the original loan of ₩3.7 billion up to ₩3.94 billion.

The loan’s dynamics exist independently from the ongoing legal discourse pertaining to the shareholder agreement’s legitimacy between HYBE and Min. Regardless of how this litigation unfolds, the loan retains its validity. Notably, Min previously expressed her plan to exercise a put option valued at approximately ₩25.8 billion, though its acknowledgment is contingent upon the shareholder agreement’s stability. If the option proceeds, repaying the loan should pose no difficulties for Min. However, if the agreement is deemed invalid, potential complications could arise, especially if Min faces allegations of breach of trust in associated criminal proceedings. In such a situation, HYBE may acquire her 18% stake at its face value of ₩2.8658 billion. Consequently, Min would need to secure an additional ₩1.07 billion to fully settle her debt to Bang.

Future of Loan Repayment: Timing and Legal Considerations

A pivotal issue now revolves around when Bang will initiate a demand for repayment. With their professional affiliation concluded, it is expected that Bang may soon exercise his rights regarding the personal loan. Should Min fail to respond to a repayment request, Bang could resort to legal avenues such as provisional seizure or filing a lawsuit for loan recovery. Reports suggest that Bang is contemplating legal actions to secure repayment, highlighting that the issue is primarily about timing. However, a representative from HYBE has clarified, “Given this is a private transaction, we cannot comment further.”

Source: Daum

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