A South Korean court on 2/12 local time ordered K-pop giant Hybe to pay about $19 million to Min Hee-jin, the former chief executive of its subsidiary Ador, in a dispute over a stock put option, prompting sharply different reactions from the two sides.
The Seoul Central District Court ruled in favor of Ms. Min in her lawsuit seeking payment under a contractual put option, which allows a shareholder to sell shares back to a counterparty at a predetermined price.
Ms. Min’s new agency, OK Records, said in a statement that it “expresses deep respect for the court’s careful and objective judgment,” adding that the ruling confirmed the validity of the shareholder agreement and the legitimacy of her put-option rights. The company said it would “respectfully accept” the decision.
Hybe said it was disappointed that its arguments were not fully accepted and that it plans to appeal after reviewing the written judgment.
The dispute centers on a shareholder agreement signed when Hybe invested in Ador, the label behind the K-pop group NewJeans. Under the agreement, Ms. Min was granted the right to sell her shares to Hybe under certain conditions. The court’s decision requires Hybe to pay roughly 25.5 billion won, or about $19 million, in connection with that option.
In its statement, OK Records said Ms. Min had hoped the lawsuit would serve not only to protect her individual rights but also to address what it described as unreasonable practices within the K-pop industry and to reaffirm the seriousness of contractual obligations.
The company said it intends to move beyond past disputes and focus on building a stable management structure, nurturing new talent and producing content aimed at global audiences. It added that Ms. Min plans to concentrate on her roles as a creator, producer and executive.
The ruling marks the latest development in a highly publicized conflict between Ms. Min and Hybe that has drawn attention across South Korea’s entertainment industry and raised questions about governance, control and artist management within major K-pop agencies.
Hybe’s appeal could prolong the legal battle, leaving uncertainty over the final financial impact and the broader implications for shareholder agreements in the country’s fast-growing music business.
