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A South Korean court has issued a landmark judgment in the contentious case between ADOR's CEO Min Hee-jin and entertainment behemoth HYBE.
The Seoul Central District Court has confirmed that Min did not breach her shareholder agreement with HYBE, the parent company of ADOR which owns 80% of the label, the latter being the home of globally acclaimed girl group NEWJEANS. Following this ruling, the court has also mandated HYBE to buy back Mins 18% stake in the company for 25.5 billion won (about $18.6 million), thus significantly elevating the stature of the EP's triumph at both the business and the judicial fronts.
HYBE charged Min with plotting to detach ADOR from the group and take NewJeans with her, allegations that were responsible for the prolong public expose and the corporate strain. Yet, the court found that her deeds were covered by the consent that had been given and the interpretation of the contract. Furthermore, the judges referred to Mins accusations in the media that BELIFT LAB, a HYBE subsidiary, copied NewJeans' creative concept in their production of the ILLIT group. They stated that this kind of critique is a matter of 'reasonable public discussion' and not a breach of contract.
The judgment is a follow, up to a contentious standoff that escalated in 2024 as the parties at odds over management control, creative direction and corporate governance issues leaked into the public domain. Industry experts reckon that the move may change the way that entertainment companies structure their partnership deals with subsidiary labels and creative executives going forward.
Even though the jury has reached a decision, the fight in court might not end there. HYBE is said to be assessing the various avenues it can take, one of which is a possible appeal, so it looks like we might see the continuation of court hearings. At this stage, the ruling can be seen as a significant milestone in a dispute that has attracted the attention of fans and shareholders, highlighting the increasing legal and business risks in the music industry of South Korea which is growing at a fast pace.
Read also: [EXCLUSIVE] Min Hee-jin Teases Big Reveal After NewJeans Departure Amid Legal Aftermath