Min Hee-jin, who recently stepped down as CEO of ADOR, has also lost her $75 million put option after HYBE terminated their shareholder agreement.
According to a report from SPOTV News on August 27, HYBE notified Min Hee Jin of the termination of their shareholder agreement in July. As a result, Min's rights to exercise the put option, which was valued at approximately $75 million, have been nullified.
The shareholder agreement between HYBE and Min Hee Jin included terms that guaranteed Min's tenure and provided her with a put option (the right to sell shares). Under the agreement, HYBE was required to exercise its voting rights to maintain Min's position as CEO and internal director of ADOR until November 2026, unless the agreement was terminated. Min, in turn, was entitled to request that HYBE purchase 75% of her ADOR shares in one transaction at any time between three and ten years after ADOR's establishment.
However, with the termination of the agreement, Min has lost both the protection of her CEO status and the valuable put option.
In 2022, ADOR posted a loss of approximately $3.1 million but turned a profit in 2023, generating around $25.3 million in operating profit, largely due to the success of NewJeans. If ADOR's growth continues at a similar rate, the company is expected to generate around $52.9 million in 2024. Had Min been able to exercise her put option, she could have potentially reaped profits ranging from $67 million to $75 million, but this opportunity has now vanished.
HYBE acknowledged the situation in its semi-annual report, stating, "After the reporting period, we terminated shareholder agreements with some shareholders and have filed a lawsuit to confirm the termination, which is currently pending."
With the necessity to guarantee Min's CEO tenure removed, HYBE decided to replace her. ADOR's board appointed internal director Ju Young Kim as the new CEO. While the term "dismissal" was not officially used, Min was effectively removed from her CEO position.
ADOR clarified, "Although Min Hee Jin has stepped down as CEO, she will remain an internal director and continue her role in producing NewJeans."
Min Hee-jin is currently facing allegations of covering up workplace harassment and sexual misconduct. A former ADOR employee, identified as B, has recently filed criminal charges against Min for violations of the Labor Standards Act and the Personal Information Protection Act, and plans to file both civil and criminal lawsuits for defamation. Additionally, B intends to report an ADOR executive, identified as A, to the Seoul Employment and Labor Office for unfair labor practices and mismanagement of labor relations.
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