Bang Si Hyuk seeking a personal loan repayment of 3.7 billion KRW with interest from Min Hee Jin

21 Nov 2024, 03:45 by Susan-Han · allkpop

According to an exclusive media outlet report on November 21 KST, HYBE Labels chairman Bang Si Hyuk is seeking a personal loan repayment of approximately 3.94 billion KRW (~ $2.8 million USD) from Min Hee Jin, former CEO of ADOR. This amount is the sum of 3.7 billion KRW, the initial loan amount made to Min Hee Jin by Bang Si Hyuk in March of 2023, plus interest.

Previously, in March of 2023, Bang Si Hyuk personally loaned Min Hee Jin 3.7 billion KRW, which allowed Min to purchase an 18% stake in ADOR. Although at the time, media outlets reported that Min Hee Jin had purchased the stakes for 1.1 billion KRW, the actual purchase price for the shares was 3.7 billion KRW, factoring in the company's valuation. The entire amount was in fact borrowed from Bang Si Hyuk.

The minimum interest applicable to a personal loan given with an IOU or a promissory note, according to South Korean laws, is 4.6%. As a result, it is estimated that with interest, the total amount owed by Min Hee Jin as of November 2024, is 3.94 billion KRW. This loan is considered to be a separate, personal arrangement between Bang Si Hyuk and Min Hee Jin, unrelated to the ongoing legal dispute over the shareholder agreement between HYBE and Min.

Meanwhile, Min Hee Jin is currently looking to exercise her put option worth approximately 25.8 billion KRW (~ $18.5 million USD) as outlined in her shareholder agreement. If the court rules in favor of Min Hee Jin and validates her ability to exercise the put option, Min Hee Jin should be able to pay the loan without issue. However, if the court rules in favor of HYBE and denies her the ability, in effect finding her guilty of professional malpractice and for a breach of trust, HYBE would then acquire the right to purchase Min Hee Jin's 18% stake at face value, or 2.86 billion KRW as of November 2024. This would then leave her with a debt of roughly 1.07 billion KRW.

When contacted for a statement regarding the above, HYBE Labels curtly stated, "We cannot provide further details as the issue involves a personal arrangement between the two sides."

Share this article SHARE