Ador CEO Min Hee-jin responds to reporters' questions as she leaves Yongsan Police Station in Seoul on July 9 after being questioned on breach of trust allegation. (Yonhap)
Despite Ador CEO Min Hee-jin’s wish to reconcile with Hybe, the parent company’s anger shows no signs of abating as its subsidiary labels continue to take legal measures against Min.
On Monday, Source Music, the Hybe music label behind K-pop girl band Le Sserafim, filed a lawsuit against Min for defamation, obstruction of business and insult, seeking damages of around 5 billion won ($362,450).
Source Music claimed that Min's comments have caused Le Sserafim to suffer from rumors and malicious comments, labeling them as a "girl group receiving special treatment at the expense of others."
Le Sserafim (Source Music)
In filing its case, the K-pop agency cited Min's comments that Hybe broke its promise to debut NewJeans as the first girl group under its multi-label system. The allegation was made during Min's teary press conference on April 25, where she refuted Hybe's allegation that she attempted a "hostile takeover." The next day, Hybe filed a criminal complaint against Min on charges of breach of duty, citing attempts to seize management control.
Source Music's case is but the latest in a string of legal problems Min faces.
Last month, Belift Lab, the agency for the girl group Illit, filed both criminal and civil lawsuits against Min for obstruction of business and defamation. The lawsuits also stem from Min's allegations made during the April press conference. Min claimed that Illit, a newly debuted girl group under Belift Lab, imitated NewJeans.
However, it may not be all doom and gloom with Min. The court handed her an early victory of sorts in its May 30 ruling on the preliminary injunction filed by Ador CEO Min against Hybe; the court acknowledged there was some basis for claims of discrimination against NewJeans by Hybe.
The court also noted that there were public opinions suggesting similarities between the concept, choreography, and outfits of Illit and those of NewJeans.
Meanwhile, a YouTube video posted by Belift Lab on June 10 aimed at refuting the plagiarism charges was met with criticism by K-pop fans and industry experts.
Illit (Belift Lab)
While Source Music and Belift Lab argue that the lawsuits are necessary to protect their artists, many believe, based on the court's May 30 ruling, that their chances of winning are slim. There is widespread speculation that the true motive behind the lawsuits is to oust Min.
The shareholder agreement signed between the Ador CEO and Hybe includes a clause stating that Min must not intentionally or negligently cause harm to other Hybe music labels.
If the court accepts Source Music and Belift Lab's claims of intentional harm, Hybe would have grounds to remove Min. Dismissing her for contract violation would also prevent her from exercising her put option, valued at nearly 100 billion won.
A win by either Source Music or Belift Lab would allow Hybe, the parent company of all three labels, to potentially fire Min without incurring financial loses and without having to prove the alleged hostile takeover attempt.
However, Lee Jae-kyoung, a professor at Konkuk University Law School and the president of Korea Entertainment Law Society, said it would be legally difficult to dismiss Min unless the court finds a breach of duty as alleged in the criminal cases filed by Hybe and Belief Lab.
"Hybe's intention to pressure Min Hee-jin and effectively render her a nominal head is evidence, given the Ador board composition that hinders her ability to exercise leading authority," Lee said.
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