HYBE has launched an audit after accusing Min of trying to usurp management control, while Min’s team counters with allegations that HYBE’s group ILLIThas copied NewJeans.
Previously, HYBE activated audit rights against Min and Executive A. HYBE alleges that Min and others have been scheming to secede from HYBE by selling ADOR’s management rights to investors favorable to them.
ADOR, owned 80% by HYBE and 20% by the current management including Min, has reportedly been seen making moves to transfer shares to gain management control.
In January, HYBE noticed that Executive A, formerly part of HYBE’s finance team and now ADOR’s deputy head, had preemptively taken various financial and contractual information to secure ADOR’s management rights.
Moreover, HYBE has evidence that Min sought advice on the sale structure from various private equity funds, venture capitals, and law firms.
In response, ADOR claimed that afterraising the issue of ILLIT copying NewJeans, they were notified of terminationprocedures.
ILLIT a five-member girl group debuted by HYBE’s label BELIFT LABin March, was accused of having similarities in their music video and lineup toNewJeans. When officially challenged by ADOR, HYBE countered with accusationsof a takeover attempt by Min.
ADOR released a statement today, saying,'The cultural achievements of ADOR and NewJeans are ironically being severelyinfringed by HYBE.
ILLIT has copied NewJeans in every aspect of entertainmentactivities including hair, makeup, clothing, choreography, photography, videoproduction, and appearances at events.'
Furthermore, 'Bang Si-hyuk, Chairman ofHYBE, produced ILLIT’s debut album. The imitation by ILLIT is not just anisolated incident by BELIFT LAB; it involves HYBE.
HYBE, a leader in the K-popindustry, has blinded itself to short-term profits and is copying successfulcultural content without hesitation, leading to a production of clichés ratherthan innovation.
The multi-label system is designed to allow each label toindependently create the music they want, not to absolve other labels withinthe group from copying cultural achievements.'
ADOR argues, 'How can a legitimate protestto protect the cultural achievements of NewJeans become detrimental to ADOR’sinterests, or be seen as an act of usurping ADOR’s management rights?
It isincomprehensible and suggests an ulterior motive.'"