Court Upholds Fine Imposed on Min Heejin
Min Heejin, former CEO of ADOR, filed an administrative lawsuit after being fined by the Seoul Regional Employment and Labor Office for workplace harassment, but lost the case.
According to Yonhap News on the 17th, citing legal sources, Chief Judge Jeong Cheolmin of the Seoul Western District Court's Civil Division 61 ruled the previous day to uphold (impose) the fine against Min, who had filed an objection against the penalty imposed by the Seoul Western Branch of the Ministry of Employment and Labor. This means the court decided to maintain the labor authorities' penalty.
Min Hee-jin, former CEO of Adore, appeared as a witness on the 11th at the Seoul Central District Court in Seocho-gu for a lawsuit confirming the claim for stock trading payment and termination of the shareholder agreement with HYBE. Photo by Yonhap News
In legal terms, the court's decision to uphold the penalty means it recognizes and accepts the administrative agency's fine. If Min's side files an objection within a week, the case will proceed to a formal trial.
Previously, in August last year, a former ADOR employee, referred to as A, filed a complaint with the labor office, claiming to have suffered psychological harm due to abusive language and other actions by Min. Additionally, A alleged to have experienced workplace harassment and sexual harassment from an ADOR executive, referred to as B, who is known to be close to Min. When A reported this to the company, Min allegedly attempted to cover up the incident.
The Seoul Western Branch of the Ministry of Employment and Labor found that Min had committed workplace harassment and failed to conduct an objective investigation as an employer. As a result, a fine was imposed, although the amount was not disclosed.
Min Heejin, CEO of ADOR, is drinking water while making a statement last year at the Korea Conference Center in Seocho-gu, Seoul, regarding the conflict with the parent company HYBE. Earlier, HYBE announced the results of an interim audit on ADOR's management, including CEO Min Heejin, and stated that they would file charges against them for breach of duty and other allegations. Photo by Kang Jinhyung aymsdream@
Min challenged the ruling and filed a lawsuit. At the time, Min's side stated, "The Seoul Employment Office preliminarily notified Min of the fine for some remarks deemed as workplace harassment," and added, "We plan to promptly submit our opinion to the administrative agency and proceed with the formal appeal process."
However, the court ruled that "Min's actions constituted workplace harassment and there were no procedural flaws in the imposition of the fine," thereby upholding the labor office's decision.
Under current law, an employer who commits workplace harassment may be fined up to 10 million won, and a failure to fulfill the obligation of an 'immediate and objective investigation' may result in a fine of up to 5 million won.
Meanwhile, Min is engaged in multiple legal disputes with HYBE and several of its subsidiary labels. HYBE has filed a lawsuit to terminate the shareholder agreement with Min, while Min has filed a separate lawsuit to claim stock trading payments related to the exercise of a put option.
In addition, Belift Lab and Source Music have each filed lawsuits against Min for damages amounting to approximately 2 billion won and 500 million won, respectively.
Regarding the summary judgment, Min Heejin, former CEO of ADOR, stated that she intends to contest the outcome in a formal trial. Min told Asia Economy, "In this summary judgment, the court found that part of the labor office's fine was unjustified and reduced the amount, which means I partially won the case." She added, "I believe there are errors in the legal and factual determinations of the parts the court accepted, and I will address these issues in a formal trial."
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