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South Korean media outlet, Segye Ilbo, reported that an industry official informed that HYBE had discovered a document in ADOR's internal materials indicating alleged plans to secure separate management rights on April 23, 2024. The document was titled, '5 Purpose' which had the following points:
- Keep us untouchable from HYBE
- Final Escape
For the unversed, ADOR is HYBE's wholly-owned subsidiary, founded in 2021.
On April 22, 2024, as per The Korea Times, HYBE reportedly launched an audit against ADOR following accusations that the subsidiary attempted to get separated from the parent company. The company confirmed that it had begun an audit on ADOR CEO and NewJeans' director Min Hee-jin and management to collect evidence regarding the accusations.
They also accused Min Hee-jin of selling ADOR shares and sharing sensitive information with outsiders and sent a letter to the subsidiary demanding the CEO's resignation.
Min Hee-jin's close associate had downloaded ample information regarding HYBE even after switching occupation
According to the Korean media outlet (Segye Ilbo), the phrase 'Keep us untouchable' from HYBE referred to the subsidiary ADOR would safeguard the internal data to put extreme pressure on the South Korean multinational entertainment company.
Meanwhile, 'finale escape' was interpreted as an alleged demonstration of the ADOR's willingness to become independent in management and establish themselves as a separate record label. However, the accusations against Min Hee-jin were not limited to allegedly securing independent management rights for ADOR but also sharing sensitive information about the company with one of her close associates.
It has been disclosed that Vice President 'A' and a close associate of Min Hee-jin, had allegedly downloaded a large amount of company's information before transferring to the ADOR, earlier in 2024. The concerned person 'A' did not even stop after changing occupations. It has been revealed that the close associate has downloaded the company's financial statements even after switching occupations and jobs.
Under the Unfair Competition Prevention Act, it will be considered a serious felony if the information—including financial reports—are leaked outside.
After the company discovered that the ADOR was planning to secure independent management rights, the audit team and others visited the business area of the subsidiary's executives and conducted searches of computers within its office in Yongsan, located in the center of Seoul. It was done to secure the computer assets and other statements.
Meanwhile, the CEO of ADORE, Min Hee-jin, has denied the accusations of trying to secure independent management rights and stated to the Korean media outlet Ilgan Sports on April 23, 2024, as translated by Koreaboo—
"I have never met with any investors to seize HYBE’s management rights (in ADOR). I have never tried to steal executive rights like HYBE claims. How can I do that with my 18% equity (in ADOR)? Because HYBE has 80% equity, it is impossible for me to seize the management rights. It is also impossible for ADOR to leave HYBE without their consent. It is hard to understand why HYBE is claiming the impossible."
She further shed light on how the entertainment company was allegedly compelling her to resign, as she raised the issue of the rookie girl group ILLIT copying NewJeans and stated, as translated by Koreaboo—
"It is because I began bringing up internal issues since a month ago. Once I raised questions about the several issues that came to light after ILLIT copied NewJeans, I suddenly received notice that HYBE was trying to terminate me."
She further accused the company of releasing false articles at a crucial time when the NewJeans comeback is just around the corner. The group has announced that they will make their comeback on May 24, 2024. Min Hee-jin, stated as translated by Koreaboo—
"I am surprised by HYBE for doing this during a very important time for NewJeans. All of this happened within four days of making a complaint. I also wonder if there has ever been a case that a company publishes articles during an audit before it has even yielded results. What was the reason they needed to put out these false articles that have nothing to do with what I was actually complaining about?"
The entertainment company officially established ADOR on November 12, 2021, with Min Hee-jin as the CEO of its latest subsidiary. She began her career with the company in 2019 and trained NewJeans, who debuted with five members on July 22, 2022, with their single Attention. She has also worked as a creative director for SM Entertainment.
The K-pop community is currently keeping track of the ongoing feud between the parent company and its subsidiary. They are eagerly awaiting to see what will be the outcome of the intense battle.
