The legal controversy between the former CEO of Ador Min Hee Jin and Hybe took a new turning point while the Chief Legal Officer of Hybe (CLO) said he had held meetings not disclosed with Japanese investors.
On 11 September, the central district court of Soul (Civil Agreement Division 31, president of Judge Nam In-Su) held an audition for Min Hee Jin and two more, who have filed a case against Hybe for a Put option agreement relating to I love shares.
Min appeared to the court in a checkered jacket and jeans, smiling while entering the classroom.
Testing as a witness, Hybe Clo Jung Jin Soo said:
“At the end of last year and at the beginning of this year, we received advice that Min Hee Jin was meeting Japanese investors to look for funding. In January, a Japanese investor even visited Korea to meet it in the new headquarters of a large investment company, which had recommended it to the agreement for the shareholders.”
Jung stressed that these actions raised concerns:
“If it were any other label, they would report after meeting the investors. But if you look at the messages of Kakaootalk between Min and the former Deputy Ceo of Ador, they deliberately hidden the Hybe meetings. That’s why the intent appears different.”
In response, Min The Legal Representative argued:
“For the CEO or deputy CEO of a company, the encounter with investors is a part of the routine of the companies. No company deals with it as a problem.”
However, Jung contrasted:
“For the CEO of an unlisted subsidiary to meet investors secretly aware of the majority of shareholders, yes, this is unusual.”
The core of the case is found in the Put option rights of Min. On the basis of the shareholder agreement, Min could exercise the possibility of selling its actions at a price calculated as 13 times I loveThe average operating profit from 2022-2023, multiplied by 75% of its 18% share.
- In 2022, I love He has published an operational loss of 4 billion 4 billion.
- In 2023, thanks to Newjeanshe recorded a profit of â‚© 33.5 billion.
- Min holds 573,160 shares (18%) and the exercise of the Put option could give it to about 26 billion (≈ $ 19 million).
Hybe claims that the Put option was null because the shareholder agreement was resolved in July 2024, four months before Min trying to exercise it. Min claims that the agreement was still valid, giving it the right to request payment.
The Court will continue the resolutions as the case takes place.
Sources: Daum
