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[Exclusive] Time for Min Hee-jin to Repay the 3.9 Billion Won Borrowed from Bang Si-hyuk
🕑 Added 2024-11-21 09:02:17 +0000 UTCsource:https://m.entertain.naver.com/article/312/0000689848
Countdown to Repayment Demand Former ADOR CEO Min Hee-jin is expected to repay approximately 3.94 billion won (including interest) that she personally borrowed from HYBE Chairman Bang Si-hyuk. With Min stepping down from her position as an internal director at ADOR on the 20th, all business relations between Min and Bang have concluded, signaling the need to settle personal financial dealings.
According to our exclusive investigation on the 21st, the personal debt between Bang and Min amounts to about 3.94 billion won as of the end of November. In March 2023, Bang personally loaned 3.7 billion won to Min so she could purchase an 18% stake in ADOR. Contrary to some media reports suggesting she was allowed to buy 18% for 1.1 billion won, Min acquired 573,160 shares (18%) for 3.7 billion won. While the par value amounts to 2.86 billion won, the actual purchase price is estimated at 6,700 won per share, considering the company's valuation. The entire amount was borrowed from Bang.
This support from Bang was in his personal capacity and is unrelated to any shareholder agreements between HYBE and Min. It is highly unusual for a company owner to personally lend money to an external recruit. In cases of personal loans rather than gifts, a loan agreement is drafted, with the minimum interest rate being the legal rate of 4.6%. The 3.7 billion won loaned in March 2023 has grown to approximately 3.94 billion won by the end of November due to interest.
The financial dealings between the two are separate from the ongoing legal dispute over the validity of the shareholder agreement between HYBE and Min. Regardless of the lawsuit's outcome, the debt relationship remains valid. Previously, Min had declared her intention to exercise a put option worth around 25.8 billion won. The recognition of this put option depends on the validity of the shareholder agreement. If acknowledged, and she receives the 25.8 billion won, repaying the loan poses no issue. The opposite scenario is more complicated.
If Min is found guilty in the criminal case where she is accused of breach of trust, HYBE can purchase her 18% stake at par value. In that case, she would receive 2.86 billion won. Based on the debt amount as of the end of November, she would need to add approximately 1.07 billion won more to fully repay Bang. The crucial question is when Bang will demand repayment from Min.
Exercising legal rights stemming from personal financial transactions is a natural progression once business relations have ended. Bang may demand repayment, and if Min does not comply, he could initiate legal actions such as asset seizure or filing a lawsuit for the return of the loaned funds. According to our investigation, internal legal measures for repayment claims are currently under consideration. It's only a matter of timing.
However, a HYBE representative stated, "It's difficult to comment as it's a personal transaction."
Comments
Rockermom (Helen V)
Pay up MHJ.
TheBioExplorer aka BTS7Plus1Forever aka Snow 777
I have a feeling will BSH may want to get at the head of the line. She strikes me as someone that may owe quite a few people. There was already noise that her home may be repossessed or sold to covers debts. In her benefit is that real estate is premium in Seoul. It's a better than a fair bet she won't be able to use the put option. So she will need to hand over the house or it's proceeds to cover the balance. Plus who knows how long the court cases will drag on the way she responds to them. The longer it goes on the higher her legal costs will be. Plus... I'm pretty sure she won't be able to work elsewhere for awhile due to a non-compete clause. Even if NJ somehow gets out of their contracts... I don't think she will be able to represent them. But it may be in Hybe's & BSH's best interest not to enforce it so that she can work and not burn through any money she has so she can pay any settlements and the loan.
