Will HYBE compromise with Min Hee-jin?

People pass by the headquarters of HYBE in Gangnam District, Seoul, May 10. Yonhap

Can a dramatic reconciliation between Min Hee-jin, CEO of Ador, and parent company HYBE bring an end to their "uncomfortable coexistence?"

With internal conflicts leaving deep wounds on both sides for over a month, Min has publicly extended an olive branch toward HYBE.

Now that their dispute has escalated into a legal battle, what will be the outcome?

On May 31, during a press conference related to a special shareholders' meeting, Min reached out to HYBE, suggesting that both sides should set aside emotional grievances for the greater good and think positively about the future.

This reconciliation proposal follows Min's successful legal action to prevent her dismissal, despite the appointment of two new internal directors recommended by HYBE, leaving her in an isolated position.

Although Min avoided dismissal through the injunction, HYBE, armed with a new board, can still convene ADOR's board to push for her removal again. Given HYBE's intention to pursue further legal actions, Min's position remains precarious.

Ador's CEO Min Hee-jin speaks during a press conference at the Korea Press Center in Seoul, May 31. Yonhap

Non-compete clause remains major hurdle

Amid a conflict with HYBE that has lasted for over a month, Min has taken the first step toward reconciliation. Expressing her willingness to find a compromise, she said, "Honestly, I don't even know who this dispute is for or what we are trying to achieve by fighting. Aren't we tired of criticizing and slandering each other? I hope we can all choose what is more beneficial in the bigger picture and move in a positive direction."

Min's proposed solution focuses on amending the non-compete clause in the shareholder agreement, which she has previously described as a "slave contract."

She said, "If the toxic clauses in the non-compete agreement are removed, I am willing to compromise on other issues."

Min has consistently criticized the unfairness of the shareholder agreement with HYBE.

Her legal representative pointed out that the contract would only terminate if Ador ceases to hold the issued bonds and terminates employment, but 5 percent of the shares held by Min cannot be disposed of without HYBE's consent, effectively enforcing a permanent non-compete clause.

Ador's CEO Min Hee-jin exits after a press conference at the Korea Press Center in Seoul, May 31. Yonhap

Need for damage control

However, it remains uncertain whether HYBE will accept Min's proposal.

HYBE has maintained silence since her statement, previously refuting Min's claims about the non-compete clause and asserting that they had expressed a willingness to amend it back in December.

Given the heightened conflict, it remains uncertain whether HYBE will return to the negotiating table with Min.

HYBE perceives the core issue as Min's alleged breach of duty and conspiracy to take over management control, making it unlikely that they will agree to her continued tenure.

However, HYBE might take into account the negative public opinion and be open to entering a new phase of negotiations.

With the company's image and its artists' reputations severely tarnished, and backlash from NewJeans fans intensifying, HYBE could choose to address the situation by accepting Min's proposal.

This would require both parties to renegotiate and reach mutually acceptable compromises, which could take some time.

Anti-Min petition signatures top 50,000

In the meantime, the number of international BTS fans supporting the petition urging Min to leave HYBE surpassed 50,000 on Monday.

On the international petition site, Change.org, a petition titled "MIN HEE JIN Leave HYBE Company" was posted on May 27, initiated by an online user named "ARMY Forever."

The petitioner believes that Min is having a negative impact on HYBE artists, claiming that she recently spread misinformation and spearheaded harassment against groups such as BTS, ILLIT and Le Sserafim.

This article from the Hankook Ilbo, a sister publication of The Korea times, is translated by a generative AI and edited by The Korea Times.