'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
On May 30, 2024, Min Hee-jin won her injunction against HYBE, prohibiting the parent company from exercising its voting rights in her removal as the CEO of ADOR during the shareholders' meeting. The meeting is scheduled for May 31 next, and was called by HYBE, as the parent corporation of ADOR.
For the unversed, injunctions are legally mandated measures issued by courts that can be used to command someone to carry out certain conduct or to prevent an act or behavior.
After the court's verdict was declared, supporters of the ADOR CEO cheered and started trending "16th floor of HYBE" on X.
This stemmed from previously surfaced information about the HYBE building's layout structure amidst the ongoing HYBE and ADOR dispute.
Koreaboo reported that the top floor of the multi-billion dollar company is allocated to ADOR even when BTS' BIGHIT MUSIC is located on the 15th floor.
Trending
The court verdict comes after a month of HYBE accusing Min Hee-jin of a breach of trust, conspiring with foreign investors to crash HYBE's shares, and attempting to takeover ADOR and NewJeans and separate them from the parent company.
The feud began in April 2024 when HYBE conducted an internal audit and filed an FIR and investigative case against Min Hee-jin. In return, she filed for a temporary injunction to stop HYBE from removing her as ADOR's CEO.
Exploring the difference between Min Hee-jin's injunction and HYBE suing her with a criminal lawsuit
The first injunction court hearing was held on May 17 when Seoul Central District Court stated that more evidence was required from both parties to declare a verdict. On May 30, during their second and last hearing, the jury upheld the ADOR CEO's request and prohibited HYBE from exercising its voting rights despite them owning 80% shares of ADOR.
It is crucial to note that an injunction and a criminal lawsuit against breach of trust are extremely different. Min Hee-jin's temporary injunction (which falls under civil law) varies from HYBE's criminal lawsuit (criminal law) filed against her for breach of trust and illegal trading of company secrets.
Article 356 of the Criminal Act in South Korea cites that special misappropriation by directors/CEOs, executive directors, auditors, and others is governed by the Commercial Act which covers breach of trust in corporate organizations.
Article 356 falls under Korean law which covers the Criminal Act (Articles 356 and 356 (2)), the Commercial Act (Article 622), and the Act on the Aggravated Punishments, etc. for Specific Economic Crimes (the "Specific Economic Crime Act," Article 3).
Meanwhile, an injunction is more of a restraining or stay order where the court instructs an entity to refrain from taking a specific action against the defendant (in this case, Min Hee-jin). Despite being a powerful tool, an injunction is a temporary arrangement for a specified period.
Here, Min Hee-jin filed an injunction at the Seoul Central District Court to restrain or prohibit HYBE from exercising its voting rights during the shareholders' meeting scheduled for May 31, 2024.
What was the actual court verdict on HYBE versus Min Hee-jin injunction?
On May 30, even though the court had restrained HYBE, it allowed the corporation to move ahead with its criminal lawsuit against Min Hee-jin. Seoul Shinmun reported that the court noted that Min Hee-jin attempted to take over ADOR and loosen HYBE's control, however, her plans were not executed. Hence, the grounds for her removal are nullified.
However, HYBE would have to pay $14.5 million in compensation to Min Hee-jin if it chooses to terminate her contract before its expiration date.
"It is clear that CEO Min was seeking a way to take NewJeans out of HYBE's control or pressure HYBE to control ADOR independently. This method went beyond the stage of exploration and involved concrete execution. It is difficult to say that it has progressed to that point." (as reported by Seoul Shinmun)
Furthermore, Hankook Ilbo reported that the court declared that the impending general shareholders' meeting on May 31 makes it difficult for the ADOR CEO to pursue a lawsuit on the merits to obtain relief for her rights. The harm caused by her inability to fulfill her responsibilities as an ADOR director is irreparable.
Meanwhile, HYBE issued a press release and stated that they will respect the court's judgment pertaining to the temporary injunction, however, they will pursue follow-up procedures within the law.
"Our company respects the court’s decision regarding the provisional injunction lawsuit filed by CEO Min Hee Jin and will not exercise voting rights in favor of the “Dismissal of Inside Director Min Hee Jin” at the upcoming extraordinary meeting of shareholders....Our company plans to proceed with subsequent steps within the boundaries set by the law." (as reported and translated by Soompi)
The shareholders' meeting on May 31, 2024, will announce the final decisions of all shareholders of HYBE Corporations concerning Min Hee-jin's removal from her position or to keep her.
