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[Alpha Biz= Paul Lee] Seoul, September 22, 2025 – HYBE is facing a series of high-profile legal disputes involving former ADOR CEO Min Hee-jin, its subsidiary ADOR, and Chairman Bang Si-hyuk, yet securities analysts remain optimistic about the company’s stock due to strong expectations for BTS’s comeback and new artist activities.
Four Key Legal Issues
1. Put Option Lawsuit with Min Hee-jin
HYBE owns 80% of ADOR, with Min holding 18% and other executives 2%. Min purchased her stake from HYBE and holds a put option on 75% of it (equivalent to 13.5% of ADOR). If exercised, HYBE would be required to buy the shares at a price equal to 13 times ADOR’s average operating profit from the year of exercise and the preceding year—estimated at KRW 26 billion. HYBE argues that Min forfeited her rights after the termination of the shareholder agreement, while Min maintains her option remains valid and that she is entitled to payment.
2. Exclusive Contract Lawsuit with NewJeans
ADOR has filed suit to confirm the validity of its exclusive contract with NewJeans. The group argues that it lost trust in ADOR after Min’s departure, but legal experts note Min’s reinstatement would be difficult, given HYBE’s 80% majority stake in ADOR.
3. Defamation Lawsuits from Source Music and Belift Lab
The two HYBE subsidiaries have sued Min for defamation, but experts believe it will be difficult to prove her statements as false, given that her remarks reflected subjective opinion rather than factual misrepresentation.
4. Capital Markets Act Allegations Against Chairman Bang Si-hyuk
Bang is accused of benefiting from undisclosed agreements with private equity funds during HYBE’s IPO in October 2020. HYBE shares surged to the upper limit on their first trading day but fell sharply within a week as exempted funds sold off holdings. Regulators allege these funds were established by Bang’s associates and that investors were misled into believing no IPO was planned. Bang allegedly received up to KRW 200 billion through side agreements. Legal experts warn that if charges are proven, Bang could face over five years in prison and fines exceeding twice the gains.
Market Outlook Remains Positive
Despite these risks, leading brokerages have reiterated Buy ratings. Last month, Leading Investment & Securities set a target price of KRW 400,000, while Hyundai Motor Securities maintained KRW 350,000, citing optimism around BTS and rookie groups.
Analyst Seongman Yoo of Leading Investment noted: “BTS is expected to make a full-group comeback next spring with a full-length album and a world tour surpassing previous K-pop scales.”
Hyun-yong Kim of Hyundai Motor Securities added: “Girl group Cat’s Eye has reached record highs on the Billboard charts and will begin their first North American tour in November. Expectations are also growing for rookie boy group Cortis.”
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
