HYBE's Strategic Moves for ADOR's Leadership Changes
HYBE is putting significant effort into the removal of Min Hee-jin, the CEO of ADOR. Key candidates for the new ADOR board include HYBE's C-level executives, such as Lee Jae-sang, HYBE’s CSO (Chief Strategy Officer).
According to the investment banking industry on the 22nd, Lee Jae-sang, Kim Joo-young (HYBE CHRO), and Lee Kyung-joon (HYBE CFO) are strong candidates to join the new ADOR board at the upcoming ADOR extraordinary shareholders' meeting on the 31st.
The two main agendas of the ADOR shareholders' meeting are the dismissal of the current ADOR board members, including CEO Min Hee-jin, and the appointment of three new board members. HYBE has been considering candidates for the ADOR board for some time.
Among the HYBE C-level executives being considered, Lee Jae-sang is the most likely candidate for the new ADOR CEO position. Lee Jae-sang was previously suggested as a board member for SM Entertainment during HYBE's acquisition bid. At that time, as HYBE America CEO, he was seen as a potential new CEO for SM Entertainment. Lee Jae-sang proposed a strategy for SM's "SM 3.0" based on HYBE's successful business model.
Kim Joo-young is a seasoned HR professional, having served as the first female HR team leader at Yuhan-Kimberly and later joining HYBE from Krafton. Lee Kyung-joon has a background in accounting from PwC and is credited with HYBE’s successful listing on the KOSPI.
These three HYBE C-level executives have been speculated to join the ADOR board since the early stages of this situation.
Other candidates for the ADOR board include Jung Jin-soo (HYBE CLO) and Lee Jin-hwa (HYBE Business Planning Director). All three were also proposed as new board members for SM Entertainment during HYBE's acquisition bid.
If the court upholds Min Hee-jin’s injunction against HYBE's voting rights, only two of the three current ADOR board members will be dismissed and replaced. This would still give HYBE a majority on the board, allowing them to propose Min Hee-jin’s dismissal. However, Min Hee-jin might file a lawsuit against HYBE for breach of the shareholder agreement.
HYBE plans to change ADOR's structure to a dual leadership system with separate production and management roles. Currently, ADOR is the only HYBE label where one person handles both roles. A HYBE executive stated that having separate experts for production and management would increase overall efficiency and prevent potential issues.
The court's decision will inevitably affect ADOR’s structure, especially as many team leaders and even the members and parents of ADOR's only idol group, NewJeans, have submitted petitions supporting Min Hee-jin.
If HYBE replaces the current ADOR board with their executives, there’s a possibility that many employees will leave. HYBE indicated that only a few responsible for the takeover will be dismissed. If a large number of ADOR employees resign, NewJeans’ activities might be managed by other HYBE labels like Pledis or Belift Lab.
