Jung Jin Soo, Chief Legal Officer (CLO) of HYBE, testified that he received suspicious reports regarding former ADOR CEO Min Hee Jin meeting with investors in Japan.
The civil hearing, overseen by Judge Nam In Soo of Seoul Central District Court’s Civil Division 31, took place on the afternoon of September 11. The session addressed a lawsuit filed by Min Hee Jin and two others against HYBE concerning payment for shares under a put option. Min arrived at the court in a large taxi, wearing a checkered jacket and dark blue jeans, maintaining a smile as she entered the courtroom.
During his testimony, Jung stated, “We received separate reports indicating that between late last year and early this year, Min Hee Jin met with individuals in Japan to secure investments from Japanese investors,” while declining to reveal the identities of the sources.
He added, “In January this year, a Japanese investor visited Korea and held a meeting with Min Hee Jin at the conference room of a prominent investment firm that had previously advised her on shareholder agreements. I recall being given detailed information about the meeting’s circumstances.”
Min Hee Jin’s legal counsel countered, saying, “It is common for company executives to meet with investors, and such meetings are not typically questioned.” Jung responded, “Isn’t it unusual for the head of an unlisted subsidiary to meet with investors without the major shareholder’s knowledge?”
He further stated, “If it were another label, the executives would have said, ‘We want to meet investors to hear their thoughts and report back.’ But reviewing KakaoTalk messages between Min Hee Jin and the former ADOR deputy CEO, it appears they were discussing matters privately, without informing HYBE. The intentions seem different.”
Meanwhile, Min Hee Jin reportedly notified HYBE of her intent to exercise a put option in November last year. Under the shareholder agreement, she would be entitled to an amount calculated by multiplying ADOR’s average operating profit over 2022–2023 by 13, then receiving 75% of that sum corresponding to her 18% stake in ADOR.
ADOR posted an operating loss of 4 billion KRW (about $2.9 million) in 2022, the year NewJeans debuted, but achieved 33.5 billion KRW (about $23.9 million) in 2023. Min holds 573,160 ADOR shares, representing an 18% stake, with the put option exercise estimated to entitle her to around 26 billion KRW (about $18.6 million).
HYBE argues that the shareholder agreement was terminated in July last year—four months before Min exercised the put option—nullifying her rights. Min contends that since the contract had not been terminated at the time of exercise, she is entitled to claim payment.
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