HYBE and ADOR Min Hee-Jin’s court battle: Exploring what has transpired so far

ADOR CEO Min Hee-jin's month-long dispute with the label's parent company, HYBE Corporation, stirred the K-pop industry since April 2024. The parent company accused Min Hee-jin of attempting to take over ADOR by overthrowing HYBE's management rights on April 21.

The company's internal audit revealed several incriminating pieces of evidence against her and two ADOR executives for illegal trading of business secrets, conspiring with foreign investors to crash HYBE's shares, and more. The ADOR CEO also filed for a temporary injunction at Seoul Central District Court to restrain HYBE from using its majority shareholders' rights and remove her from the company.

After a month-long battle, the court passed Min Hee-jin's injunction and prohibited HYBE from using its rights to cast her out during the shareholders' meeting on May 30, 2024. However, both parties lost a lot due to their feud, tainting their and their artists' reputations and straining their employees.

---

HYBE vs Min Hee-jin: K-pop industry's biggest court battle controversy of the decade

The Seoul Central District Court noted that Min Hee-jin caused massive damage to HYBE and its artists with her attempt to make ADOR independent of its parent company. However, it also left a dent on HYBE as the court ordered it to refrain from using its voting rights against the ADOR CEO at the shareholders' meeting.

Min Hee-jin owns 18% of ADOR's shares, while HYBE owns 80%, and the rest 2% is distributed among other executives. At present, HYBE appointed Chief Human Resources Officer Kim Ju-young, Chief Strategy Officer Lee Jae-sang, and Chief Financial Officer Lee Kyung-jun as ADOR's current board members.

After the shareholders' meeting, despite retaining her position as CEO, she will have to run every decision for the label and NewJeans through the newly appointed executives. HYBE fired the two ADOR board executives who conspired with Min Hee-jin since the temporary injunction protected only her and not her executives. HYBE announced in its May 30 statement that,

"As the court stated in its decision, 'it is clear that Min Hee-jin sought to weaken HYBE's control over ADOR by taking NewJeans out of HYBE's control or pressuring HYBE to sell its stake in ADOR, and that Min could control ADOR independently,' HYBE plans to pursue further proceedings within the framework of the law." The Chosun Daily reported.

Chosun Biz reported that according to legal experts, the ADOR CEO's position might be further undermined as the police investigation continues by the criminal accusations brought by HYBE for breach of duty. The Yongsan Police Station has asked the ADOR CEO to turn in her laptop for forensic testing; however, she has denied submitting it.

Over 90% of data on a laptop can be recovered through forensic examination despite being formatted. Additionally, Min Hee-jin's criticism of ingrained K-pop business practices, including plagiarism and aggressive album sales strategies, has tainted HYBE's repertoire.

HYBE declared to pursue a criminal lawsuit, and industry experts believe that the ADOR CEO will have to turn in her laptop to the police soon to avoid further charges. HYBE's other subsidiary label, Belift Lab, had further filed a civil lawsuit against her for accusing the girl group ILLIT of plagiarising NewJeans.

Earlier, Min Hee-jin claimed Belift Lab's rookie girl group has copied ADOR's NewJeans' concept and choreography.

---

Min Hee-jin still faces several ongoing lawsuits

Meanwhile, HYBE was heavily criticized for allegedly ignoring ADOR's girl group, NewJeans, and allowing Belift Lab to debut ILLIT with a plagiarized concept. They also were criticized for favoring LE SSERAFIM, the rookie girl group of Source Music (another HYBE subsidiary).

Furthermore, with several ongoing lawsuits against the ADOR CEO, her position as the CEO is still at risk as her injunction win protects her for a temporary period. If the police investigation reveals new information against her, she will stand to lose her position, $76.5 million worth of ADOR shares, and contract termination.

Additionally, out of the 18% shares, she cannot sell 5% without HYBE's signed approval. If proven guilty, HYBE can purchase the ADOR CEO's $76.5 million worth of ADOR shares for just $2.1 million.

Public opinion was dramatically altered on May 30, 2024, after Min Hee-jin held another press conference and tried to reconcile with HYBE by stating that she dragged other K-pop groups like BTS, ILLIT, LE SSERAFIM, and more since she was hurt. Netizens condemned her for her careless statements, which tainted the reputation of many K-pop groups in her press conference and KBS interview.

---

In other news, BTS member Kim Seokjin was discharged on June 12, 2024, after completing 18 months of mandatory service in the South Korean military.

NewJeans has released How Sweet on May 24 and will be releasing Supernatural on June 21.