In a recent telephonic discourse with Daily Sports on April 23rd, Min Hee-jin countered, “Claims made by HYBE alleging my attempts to wrest management control of ADOR are baseless. Owning a mere 18% of shares, such a takeover would be infeasible.”
She expounded, “With HYBE in possession of a dominating 80% stake, any bid for control on my part is evidently futile. Their assertions are baffling considering the structural impossibility of ADOR becoming an entity independent of HYBE sans their approval.”
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Prior incidents highlighted HYBE issuing an audit questionnaire underpinned by suggestive evidence pointing to ADOR’s leadership, including CEO Min Hee-jin, colluding to seize management control. This includes suspicions of consulting external parties and atypical practices in staff recruitment. Beyond the audit inquiry, HYBE has pressed for CEO Min Hee-jin’s resignation and summoned a shareholder meeting to reconstitute ADOR’s board.
The timing of HYBE’s abrupt demands is notable given that NewJeans, an artist under ADOR, is gearing up for a Korea comeback with dual singles slated for May 24th, alongside a Japan debut and fan event at Tokyo Dome in June. Following the surfacing of the strife between HYBE and Min Hee-jin, HYBE’s stock plummeted by 7.81% to close at 212,500 won, eroding the company’s market valuation by a substantial 749.8 billion won.
Elaborating on her reaction to the swathe of demands from HYBE, including the audit notice, Min Hee-jin stated, “This follows the internal complaints levied against HYBE over the past month and until the previous week.” Concerning ADOR’s posture, she remarked, “Allegations were put forth regarding issues like the perceived imitation of NewJeans by ILLIT, another band under HYBE’s BELIFT Lab.”
CEO Min proclaimed, “We sought HYBE’s official stance on the internal accusations by the 24th, only to be met with an unforeseen response.” She staunchly avowed, “If financial gain were my objective, I wouldn’t have laid forth any such internal grievances. Their portrayal of ADOR attempting to usurp management rights seems an intentional misframe.”
Min Hee-jin confessed her astonishment at HYBE’s actions which coincide with a pivotal juncture for NewJeans. Despite waiting on a response from HYBE pertaining to their filed grievances, she observed an odd conjunction of audit notices and simultaneous media reports. She questioned the motives behind these urgent publications, unconnected to the issues she flagged.
She clarified, “In light of the impending album release, I hesitate to issue a statement that might hinder the painstakingly prepared comeback. Yet silence could lead to further attacks and conjecture. Consequently, I aim to curb the damage as much as possible.” She added, “HYBE’s lack of regard for the artists’ welfare and schedules is concerning. With crucial activities on the horizon, I seek to gauge an optimal response whilst avoiding sparking disproportionate public discourse.”
Furthermore, Min Hee-jin expressed hopes of resolving the conflict through internal reports, yet felt blindsided by HYBE’s assertive tactics. She likened her predicament to a “David and Goliath” scenario but remained resolute amidst external and internal affronts. Her resolve reflects her intentions and the crux of the issue, as she believes her past actions should offer ample insight into her stance.
As things stand, HYBE has imposed an April 23rd deadline for responses from CEO Min Hee-jin and ADOR executives to the audit questionnaire. This development underscores the heightened tension in the dispute concerning governance matters between HYBE and its offshoot ADOR.
FAQs about the HYBE and Min Hee-jin/ADOR Dispute:
- What is ADOR’s relationship with HYBE?
ADOR is a label under the HYBE corporation, with HYBE holding an 80% majority stake. - Why did HYBE request an audit of ADOR?
HYBE issued an audit questionnaire based on suspicions that ADOR’s executives were seeking to take control of the company’s management, a claim that CEO Min Hee-jin has denied. - What was Min Hee-jin’s response to HYBE’s claims?
Min Hee-jin denied all allegations of attempting to take over the management rights and expressed confusion over HYBE’s assertions, given the structural impossibility highlighted by HYBE’s majority shareholding. - How has this dispute impacted HYBE’s stock value?
Following the news of the dispute, HYBE’s stock dropped by 7.81%, and the company’s market capitalization decreased by 749.8 billion won. - What does Min Hee-jin intend to do moving forward?
Min Hee-jin is considering the best way to respond while trying to minimize any potential damage to ADOR’s artists and their schedules.
Conclusion:
The escalating conflict between HYBE and ADOR, with CEO Min Hee-jin at its center, showcases a complex struggle involving management control, corporate governance, and artist welfare. Min Hee-jin’s strong denial of claims made by HYBE that she attempted a takeover of ADOR—despite owning only a minor share—highlights the challenges of navigating corporate power dynamics within the entertainment industry. The situation is still unfolding, and the final outcomes will likely be closely watched by industry observers and stakeholders alike.