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SOURCE: [단독] "하이브, 언플로 먼저 민희진 배신" 재판부 작심 비판
HYBE has 'completely lost' in the shareholder agreement lawsuit against Min Heejin. The court rejected most of HYBE's claims and emphasized that HYBE was the one who damaged the trust first. Notably, the court also pointed out HYBE's aggressive media play, which has been constantly criticized by people in the industry.
According to the first trial verdict obtained by this paper on the 20th, the Seoul Central District Court stated that HYBE was the first to bring the conflict to the public. In other words, HYBE started the media play first.
■ “HYBE started media play first... HYBE is the one who broke the trust”
The court stated, "The protest emails sent by Min Heejin’s side on April 3 and April 16, 2024 showed that the conflict remained internal. However, HYBE’s exclusive news report on April 22, 2024 made the conflict completely public." They added, "Min Heejin’s press conference that was held that same day appears to be based on her right to defend herself."
The court also pointed out that the timing of HYBE's audit and the media reports overlapped. The court said, "On April 22, 2024, HYBE launched an audit for ADOR. They demanded Min Heejin to resign from the CEO position and began the process to fire her." They noted, "On the same day, an exclusive article was reported with the title 'HYBE Launches Sudden Audit on ADOR, the Agency of NewJeans.'"
The court continued, "Although HYBE claimed Min Heejin would have used NewJeans to sell ADOR shares at a low price and take the loss, there appears to be no evidence that HYBE had identified this in advance and taken proper action."
Most importantly, the court explicitly stated that the decline in HYBE's stock price was caused by their own excessive media play.
The court said, "HYBE's stock price dropped significantly (7.8%) on April 22, 2024. This decline seems to be the result of the conflict becoming public through the exclusive article and the heated battle that followed." They added, "In their breach-of-duty complaint, HYBE claimed a loss of 800 billion KRW in market value, which seems to reflect this stock trend."
■ “Nothing more than private talk without action” ... Claims of ‘management takeover’ and ‘stealing NewJeans’ claims all rejected
The court did not accept most of HYBE's arguments.
Regarding HYBE's claim that ‘Min Heejin tried to steal management rights,’ the court said, "It is true that she looked for ways to weaken HYBE's control over ADOR and to rule the agency independently. However, these were plans she made on the condition that her contract negotiations failed and assuming she had the owner's consent after exercising er 'put option' rights in 2025. The court ruled, "Simply looking for ways to make ADOR independent can not be seen as a serious violation of the shareholders' agreement."
The court also dismissed HYBE's claim that 'Min Heejin tried to steal NewJeans.' The court stated, "A director’s actions are within their management freedom, so she cannot be held responsible for damages to the company."
In other words, the court judged that the 'betrayal' HYBE claimed: 1. was just a casual conversation that wasn't put into action, 2. was only a hypothetical scenario based on HYBE's consent, and 3. that HYBE broke the trust by hastily launching an audit and leaking it to the media.
■ The truth behind the “ILLIT is a NewJeans copycat” controversy
Additionally, the court also judged Min Heejin's suspicion that 'ILLIT copied NewJeans' as a fair opinion. The court said, "Her claim wasn't about specific items, but that ILLIT's overall impression is similar to NewJeans. This is an expression of opinion or judgment, not a statement of fact."
The court also accepted Kakao Talk messages between BTS' V and Min Heejin as evidence. At the time, V reportedly said, "(People always talk about plagiarism, it never stops) Sigh... I know right. I also saw it and thought 'this looks similar...'" Furthermore, the court acknowledged that HYBE's Chairman, Bang Sihyuk, produced ILLIT's debut album.
■ “NewJeans value is 2 trillion KRW, same level as BLACKPINK” ... Recognition of Min Heejin’s achievements
The court even compared NewJeans to BLACKPINK, stating, "The only comparable girl group is BLACKPINK," and estimated that, "The fair value of ADOR within two years could reach 2 trillion KRW."
The court also noted, "Min Heejin's side had estimated ADOR's market value at 0.8 to 1.5 trillion KRW in early 2024. They compared NewJeans to BLACKPINK, noting that YG reached a peak market value of 1.8 trillion KRW because of BLACKPINK, before declining amid contract renewal risks. The 2 trillion KRW estimate assumes that the alliance between NewJeans, Min Heejin, and HYBE continues."
The court also accepted Min Heejin’s criticisms of HYBE as evidence.
During a meeting with HYBE on January 25, 2024, Min Heejin said, "If you have a conscience, stop exploiting them. Ever since NewJeans debuted, everyone inside and outside the company is copying them. PLEDIS, BELIFT Lab, everyone is all copying NewJeans." She added, "Former CEO Park Jiwon told me they're desperate to make a 'male NewJeans' and that I should make a boy group. In this situation, why would I be crazy enough to make a boy group when I know everything will be taken from me like this?"
Regarding this, the court quoted a document explaining why she was cleared of charges on breach of trust, mentioning that her actions were caused by resentment of semi-illegal practices, such as pushing high first-week album sales and copying between subsidiaries.
Because of this ruling, HYBE must pay Min Heejin and others 25.6 billion KRW for stock payments. On the other hand, all of HYBE's claims were dismissed. HYBE submitted an appeal on the 19th and is continuing to fight the court's decision.
