He purchased his holdings in ADOR through a loan from him.
This article is part of our coverage of HYBE against ADOR CEO Min Hee Jin. You can read more and view the entire timeline here.
According to the latest Korean media reports, ex I LOVE IT CEO Min Hee Jin should repay KRW 3.94 billion (about US$2.81 million) borrowed by her personally MOVES founder and president Bang Si Hyuk.
A TenAsia The November 21 report stated that in March 2023, Bang personally loaned Min ₩3.70 billion KRW (about $2.64 million) that he needed to purchase an 18% stake in ADOR. Min Hee Jin purchased 573,160 shares, and although the par value of those shares was ₩2.86 billion KRW (approximately $2.04 million USD), taking into account enterprise value, etc., the actual purchase price turned out to be ₩6,700 KRW (approximately $4.79 USD) per share, equivalent to 3.70 billion KRW (approximately 2.64 million of dollars).
When personal loans are granted through promissory notes or promissory notes, the minimum interest applicable is the legal rate of 4.6%. Following that number, the [krw] What Min Hee Jin had borrowed in March 2023 rose to 3.7 billion [krw] 3.94 billion [/krw] by the end of November. The loan agreement between the two is separate from the legal dispute over the validity of the shareholders’ agreement between HYBE and Min Hee Jin. So, regardless of the outcome of the case, the agreement would remain valid.
Recently, it was reported that Min Hee Jin is looking to exercise his put option worth KRW 25.8 billion (about $18.4 million) as per the shareholder agreement. If the court rules in his favor and validates his ability to exercise the put option, then Min Hee Jin could repay Bang Si Hyuk without a hitch. But if the court found it guilty of professional negligence and breach of trust, HYBE would have the right to buy its 18% stake in ADOR at par value, which is [Krw] 2.86 billion [/krw] starting November 2024. In that case, Min will remain in debt ₩1.07 billion KRW (approximately $764,000 USD).
With Min’s resignation from her position as ADOR’s in-house director on November 20, all business dealings between her and Bang Si Hyuk have officially ended. In this situation, it is natural to also move towards the resolution of personal financial transactions. Bang Si Hyuk can now ask Min Hee Jin for a refund and also sue her if she doesn’t respond. But it’s unclear whether he plans to request a refund now. When the media contacted HYBE for comment, an official said it would be difficult for them to talk about anything as the situation concerns the personal finances of the two.
