Min Hee-jin, who recently took over as CEO of WORSHIPhas also lost its $75 million put option after HYBE terminated their shareholder agreement.
According to a report by SPOTV News on August 27, HYBE notified Min Hee Jin of the termination of their shareholders agreement in July. As a result, Min’s rights to exercise the put option, which was worth around $75 million, were cancelled.
The shareholders agreement between HYBE and Min Hee Jin included terms that guaranteed Min’s tenure and granted her a put option (the right to sell shares). Under the agreement, HYBE was obligated 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 require HYBE to acquire 75% of her ADOR shares in a transaction at any time between three and ten years after ADOR’s inception.
However, by terminating the agreement, Min has lost both the protection of her CEO status and the valuable put option.
In 2022, ADOR posted a loss of around $3.1 million, but turned a profit in 2023, generating operating profit of around $25.3 million, largely due to the success of NewJeans. If ADOR’s growth continues at a similar pace, 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 earned between $67 million and $75 million, but that opportunity has now been lost.
HYBE confirmed the situation in its half-year report and stated: “After the reporting period, we terminated shareholder agreements with some shareholders and filed a termination confirmation lawsuit, which is currently pending.”
Since the need to guarantee Min’s tenure as CEO was lifted, HYBE decided to replace her. ADOR’s board of directors appointed the internal director Kim Joo Young as the new CEO. Although the term “dismissal” was not officially used, Min was de facto removed from her position as CEO.
ADOR clarified, “Although Min Hee Jin has resigned as CEO, she will remain as internal director and continue her role in the production of NewJeans.”
Min Hee-jin is currently facing allegations of covering up harassment and sexual misconduct in the workplace. A former ADOR employee, identified as Bhas recently filed criminal charges against Min for violations of the Labor Standards Law and the Personal Information Protection Law and plans to file both civil and criminal defamation lawsuits. In addition, B intends to report an ADOR manager who is Ato the Seoul Labor and Employment Department for unfair labor practices and mismanagement of labor relations.
SEE ALSO: Min Hee Jin resigns as CEO of ADOR and will continue to produce NewJeans
