HYBE Files Complaint Against ADOR CEO Min Hee-jin for Alleged Attempt to Seize Management Rights, Sparking Intense Public Dispute.
The conflict between HYBE andADOR has exploded, with HYBE accusing Min Hee-jin of attempting to "seize management rights," while Min Hee-jin denies the allegations.
The internal conflict with in HYBE, the largest K-pop entertainment company in South Korea, has erupted.
On the 25th, HYBE announced that they would file a complaint against Min Hee-jin,the CEO of its subsidiary label ADOR (home to NewJeans), and other executives for breach of trust, stating that their
"plan to seize management rights has been confirmed as fact."
Min Hee-jin immediately held a press conference, strongly refuting the claims, saying, "I have never planned, intended, or executed a takeover of management rights."
HYBE released the interim resultsof their audit, stating,
"We have confirmed concrete facts that a plan toseize management rights was established under the leadership of CEO Min, and wehave also secured physical evidence."
HYBE has been conducting aninternal audit of ADOR since the 22nd.
HYBE revealed, "One of the individuals under audit submitted information to HYBE as evidence, which contained ADOR's plan to seize HYBE's management rights and the fact that they had contacted external investors for this purpose.
They also admitted to creating documents intended to attack HYBE."
HYBE also claimed that MinHee-jin instructed ADOR executives to "come up with ways to pressure HYBE to sell its stake in ADOR."
HYBE disclosed parts of a KakaoTalk conversation between Min Hee-jin and ADOR's Vice President A to the media, which was obtained during the audit process.
HYBE released the interim results of their audit, stating, "We have confirmed concrete facts that a plan to seize management rights was established under the leadership of CEO Min, and we have also secured physical evidence."
HYBE has been conducting an internal audit of ADOR since the 22nd.
HYBE revealed, "One of the individuals under audit submitted information to HYBE as evidence, which contained ADOR's plan to seize HYBE's management rights and the fact that they had contacted external investors for this purpose. They also admitted to creating documents intended to attack HYBE."
HYBE also claimed that Min Hee-jin instructed ADOR executives to "come up with ways to pressure HYBE to sell its stake in ADOR."
HYBE disclosed parts of a KakaoTalk conversation between Min Hee-jin and ADOR's Vice President A to the media, which was obtained during the audit process.
In the chat, Vice President A tells Min Hee-jin, "Exit the put option on January 2, 2025,""ADOR will become an empty shell," "Seek financialinvestors," and "Advise HYBE to sell ADOR." Min Hee-jin reportedly responded, "Jackpot."
HYBE stated that during the process of plotting the management rights takeover, ADOR discussed plans to terminate NewJeans' exclusive contract midway and invalidate the contract between Min Hee-jin and HYBE.
Min Hee-jin strongly objected.During an emergency press conference held in Gangnam, Seoul, she said, "Ihave never planned, intended, or executed a takeover of management rights."
Min Hee-jin described the current situation as a "historic farce" and said she initially didn't evenfeel the need to refute the claims.
She explained that the KakaoTalk conversation between herself and Vice President A, which HYBE disclosed, was a private conversation without any ulterior motives.
Min Hee-jin was in the process of renegotiating the shareholder agreement she had previously signed with HYBE,which had some disadvantageous terms. The private conversation took place while she was under stress as the negotiations were not going well.
Lee Sook-mi, an attorney from law firm Sejong representing Min Hee-jin, stated, "The crime of breach of trust is only established when an act that actually damages the company's value is committed, but no such act has been committed."
They also argued that it is fundamentally impossible for Min Hee-jin to seize management rights with her 18% stake.
In ADOR, HYBE holds an 80% stake,Min Hee-jin holds 18%, and ADOR executives hold 2%. Lee Soo-kyun, anotherattorney from Sejong, stated, "In a situation where the shareholding ratiois 80 to 20, a takeover of management rights is impossible."
Min Hee-jin also revealed thatshe had made an "internal report" against HYBE before the auditbegan.
In ADOR, HYBE holds an 80% stake, Min Hee-jin holds 18%, and ADOR executives hold 2%. Lee Soo-kyun, another attorney from Sejong, stated, "In a situation where the shareholding ratio is 80 to 20, a takeover of management rights is impossible."
Min Hee-jin also revealed that she had made an "internal report" against HYBE before the audit began.
However, she did not disclose the contents of the internal report. Min Hee-jin said, "I made the internal report with the hope that HYBE would internally reflect and rectify the issues."
During the press conference that lasted over two hours, Min Hee-jin revealed the process of joining HYBE at the request of HYBE's chairman Bang Si-hyuk after leaving SM Entertainment, the unfair treatment she received from HYBE during the process of debuting NewJeans, and the KakaoTalk conversations she had with HYBE's CEO Park Ji-won during that time.
Min Hee-jin claimed that Chairman Bang instructed her not to promote 'NewJeans' until the debut of LE SSERAFIM, the group he was producing under HYBE's label SOURCEMUSIC. Even after the group's successful debut, he did not even congratulate them.
She said, "HYBE betrayed me. They used me as much as they could, and now that they don't need me anymore, they're trying to suppress me with a frame-up."
She also pointed out the issue of the newly debuted group ILU, under HYBE's subsidiary label Belift Lab, "copying NewJeans."
Min Hee-jin said that Belift Lab copied NewJeans' overall promotion strategy during ILU's debut process and stated, "It's a good employee who points out that this is not good. This will ruin ILU as well."
She also raised the issue of HYBE conducting an audit of ADOR and essentially disclosing the process to the media, coinciding with NewJeans' comeback timing.
Min Hee-jin said, "I want to ask HYBE if they are truly considering NewJeans." NewJeans is set to make a comeback on the 27th with the music video for their new song 'Bubble Gum.' They also have a large-scale fan meeting scheduled at the Tokyo Dome on June 26-27.
