The conflict between Bang Si Hyuk, chairman of HYBE, and Min Hee Jin, the former CEO of ADOR, has escalated with Bang Si Hyuk seeking the repayment of a personal loan amounting to approximately 3.94 billion KRW (about $2.8 million USD) from Min Hee Jin. This amount includes the original loan and accumulated interest, adding a new dimension to their ongoing disputes.
Loan Details and Background
In March 2023, Bang Si Hyuk provided a personal loan of 3.7 billion KRW to Min Hee Jin. The funds were reportedly used by Min Hee Jin to purchase an 18% stake in ADOR, a company under HYBE’s umbrella. Although earlier reports had suggested a purchase price of 1.1 billion KRW, it was later confirmed that the actual transaction amounted to the full loan amount. The deal was fully financed through Bang Si Hyuk’s personal support.
South Korean law requires a minimum interest rate of 4.6% for loans issued via IOUs or promissory notes. Consequently, as of November 2024, Min Hee Jin owes Bang Si Hyuk 3.94 billion KRW, which includes both the principal loan and accumulated interest. Despite the high stakes involved, HYBE clarified that this financial arrangement is strictly personal and unrelated to the ongoing corporate legal dispute.
Implications of the Legal Dispute
Min Hee Jin has invoked a put option under the shareholder agreement, which allows her to sell her 18% stake in ADOR to HYBE for approximately 25.8 billion KRW (around $18.5 million USD). If the court rules in her favor, she could use these funds to repay the loan without issue. However, the situation could take a dramatic turn if the court sides with HYBE.
If the court invalidates the put option and determines that Min Hee Jin breached her professional responsibilities or engaged in malpractice, HYBE could purchase her stake at its face value of 2.86 billion KRW. In this case, Min Hee Jin would be left with a debt of approximately 1.07 billion KRW, even after transferring her stake.
HYBE’s Stance on the Issue
HYBE Labels addressed the matter with a brief statement, emphasizing that the loan in question is a personal financial arrangement between Bang Si Hyuk and Min Hee Jin. The company stated that it is unrelated to the ongoing legal proceedings over the shareholder agreement. HYBE declined to provide further comments, citing the sensitive and private nature of the arrangement.
The legal battle and financial complexities surrounding the situation continue to draw significant public and media attention. The outcome of the court’s decision is expected to have far-reaching implications for both Min Hee Jin’s financial stability and the future of ADOR’s shareholder structure.
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