Amidst the escalating legal dispute between HYBE and its subsidiary ADOR, attention is drawn to the call option specified in the shareholder agreement. HYBE filed a lawsuit against ADOR’s CEO Min Hee-jin last month on charges of business embezzlement. If HYBE proves the embezzlement, it could repurchase Min’s shares for about $2.4 million.

The repurchase possibility stems from a call option outlined in the shareholder agreement between ADOR's shareholders, which states, "In case of a contract violation by Min or others, HYBE has the right, directly or through a designated third party, to buy all shares held by Min or others." The price for these shares under the call option is set as the lesser of the nominal value per share and 70% of the fair value.

If HYBE's allegations of embezzlement are upheld, they could use the violation of the shareholder agreement to repurchase these shares at face value levels. Considering ADOR's registered capital of $12.8 million and the reported nominal value of ADOR’s shares at $4, Min's shareholding is estimated to be worth $2.2 million, and including management, around $2.6 million.

Originally, Min had the right to sell her 18% company stake at a predetermined price from the end of this year, a put option estimated by some to be worth about $80 million. Therefore, the amount Min could gain could dramatically reduce from $80 million to less than $2.4 million, essentially leaving her empty-handed upon resigning from her CEO position. This situation could lead to further legal battles.

Moreover, it was reported that Min used about $16 million borrowed personally from HYBE chairman Bang Si-hyuk to exercise her call option and purchase an 18% stake in ADOR last year. After repaying this, Min might virtually have nothing left, according to speculation.

Details of the shareholder agreement have not been fully disclosed, but the industry views HYBE's filed business embezzlement charges as potentially problematic. Laws related to the prevention of unfair competition and the protection of trade secrets are also being discussed, which Min would also need to defend in a likely fierce legal battle. This makes the exercise of HYBE’s call option potentially challenging.

Separately, HYBE requested a board meeting last month to replace the ADOR management, including Min, but the meeting was canceled due to Min's refusal to convene it. Consequently, HYBE has applied to the court to hold a general shareholders meeting. If the court permits, an extraordinary general shareholders meeting will be convened, where HYBE plans to pass resolutions to dismiss Min Hee-jin and replace the ADOR directors. 

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