On the afternoon of May 10th, ADOR issued another statement, stating, “In light of HYBE’s statement in an attempt to conceal the incident of a late-night audit of female employees yesterday, we are striving to provide an accurate account of the facts to avoid any further controversy.”
According to ADOR, the problem arose due to HYBE’s limited knowledge about the work and treatment of stylists. In fields like design, choreography, and styling, skilled individuals often earn more as freelancers outside of the company rather than being employed solely on their capabilities. Thus, a flexible compensation system is essential in order to retain these abilities in the real label industry.
ADOR stated that they have always believed in providing adequate compensation to talented individuals who produce results. This is why they offer high incentives based on performance to not only their stylists, but also other highly skilled talents. The expenses mentioned by HYBE are related to the costs incurred by advertisers when hiring external freelance stylists, and these costs were paid directly to the stylists who completed the tasks.
According to ADOR, the CEO, vice-CEO, and stylist discussed the receipt of these expenses and concluded that it would be more efficient and result in a higher quality outcome if the work was handled by internal stylists. As a result, the advertisers provided a fair payment for the services rendered. HR has been provided with ample evidence to support this decision.
Additionally, they conveyed their regret stating, “We deeply apologize that HYBE is trying to conceal the legitimately received reimbursement as illicit gains in order to conceal yesterday’s regrettable occurrence.”
Previously, ADOR had released a statement claiming that HYBE had audited the team leader “A”of the style directing department in an unlawful manner. According to ADOR, HYBE had raised concerns about A receiving payments directly from advertisers, but ADOR argued that this could not be considered embezzlement as A had not caused any financial harm to the company. Instead, A had simply received the same amount from advertisers as incentives, rather than through the company.
In response, HYBE released a rebuttal statement, stating that they would take legal action against Min Hee-jin for accepting approved funds. HYBE refuted ADOR’s claim that this is a common practice in the advertising industry and cannot be considered embezzlement, stating, “It is not a common practice for company employees to personally profit from advertisers in the amount of hundreds of millions of won. The CEO’s tolerance for this behavior over the years is not a custom, but a clear violation of the law.”Furthermore, they clarified that the audit was conducted in a lawful and non-coercive manner with the auditee’s consent.
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