Police drop charge after yearlong investigation, Hybe says will appeal to prosecution
Former Ador CEO Min Hee-jin, who was accused of breach of trust by Ador’s parent company Hybe, has been cleared of the charges, police confirmed.
On Tuesday, Min’s legal team stated that after an investigation of more than a year, police found no evidence of illegal conduct on Min’s part. As a result, the criminal complaint filed by Hybe was dismissed without sending the case to the prosecution.
Hybe filed a complaint on April 26, 2024, accusing Min and Ador executives of attempting to seize control of the company. The complaint was based on KakaoTalk messages purportedly suggesting a plan to take over management rights.
Min’s side countered that such a takeover was structurally impossible, as Hybe holds an 80 percent stake in Ador. They also argued that there was no attempt to harm the company’s value or commit any act constituting a breach of trust.
In August last year, Ador’s board appointed in-house director Kim Joo-young as the new CEO. Min stepped down from the CEO post and officially resigned as an internal director on Nov. 20.
Hybe said it would file an appeal with the prosecution against the police decision.
“After the police investigation, new developments occurred, including NewJeans members declaring their intent to terminate their contracts. In related court proceedings, multiple new pieces of evidence were submitted, and based on these, the court regarded Min’s actions as very serious,” Hybe stated.
The company also emphasized that police had previously dismissed complaints filed by Min in which she accused five Hybe executives of obstruction of business and defamation.
Although Min has been cleared of the breach of trust charge, she still faces civil litigation by Hybe subsidiaries Source Music and Belift Lab.
Seoul Western District Court is scheduled to hold a third hearing on Friday for both lawsuits filed by the labels seeking compensation for damages.
Source Music, home to girl group Le Sserafim, filed a 500 million won ($362,000) suit on the claim that Min defamed the company by stating at a press conference in April 2024 that “Hybe prevented NewJeans from being promoted until after Le Sserafim’s debut,” implying the girl group had benefited from favoritism.
Belift Lab, which manages girl group Illit, also filed a lawsuit for 2 billion won alleging that Min’s public statement accusing Illit of “copying NewJeans” caused them severe reputational damage.
Concurrently, Min is entangled in a separate legal battle with Hybe over a put option dispute worth approximately 26 billion won.
In November, Min notified Hybe of her intent to exercise her put option, which would entitle her to receive 26 billion won. However, Hybe claims that Min’s rights to the put option were no longer valid, as the shareholder agreement was terminated in July 2024.
The court is expected to review the legal validity of the put option alongside Hybe’s separate lawsuit seeking confirmation of the shareholder agreement’s termination.
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