ADOR Refutes HYBE’s Claims: CEO Min Hee-jin Accused of Financial Motives

On May 2nd, ADOR officially announced its position through its legal representative, Sejong.

The reason for this statement, as stated by ADOR, was that despite receiving rebuttals from HYBE, they chose not to respond in order to protect the value and avoid disrupting the artists’ activities. However, due to the constant spread of unverified information causing confusion and intensifying controversies, ADOR decided to release an official statement in order to clarify the accurate facts. It is their hope that this statement will dispel any previous speculation and misunderstandings.

ADOR refuted HYBE’s accusation of management usurpation, claiming that it is unfounded. They pointed out that during the press conference, CEO Min Hee-jin clarified that her incentive was 2 billion won, not a salary, and was awarded for achieving an operating profit of 33.5 billion won within two years of ADOR’s establishment. The issue at hand was not the amount of the incentive, but rather the lack of transparency in HYBE’s incentive criteria and decision-making process. ADOR believes that HYBE is distorting the facts by mentioning the CEO’s salary, incentives, and stock rewards in an attempt to portray her as being driven by financial motives.

In regards to the whistleblowing and audit process, ADOR expressed concern about a listed company disclosing internal audit details to the public, even altering unconfirmed information and presenting it as real-time news. This has had a negative impact on the business operations of CEO Min Hee-jin and ADOR members, who have been working tirelessly day and night, especially with the artists under the subsidiary label on the brink of a comeback. HYBE claims to have provided new laptops and transferred existing data to avoid any disruption to work, but this is not the case. The seizure of the Vice-CEOs’ laptops was done without allowing sufficient time to download important work materials, and the entire confiscation process was deemed unreasonable by ADOR.

ADOR disagreed with HYBE’s assertions about their promise to debut NewJeans as the first girl group. They instead debuted LE SSERAFIM and instructed that NewJeans should not be promoted upon debut.

In response to claims that the contract between HYBE and Min Hee-jin was not a “slave contract”, ADOR stated that CEO Min Hee-jin acknowledged the need for a competition ban. As a CEO of an entertainment company, she understands that she may be restricted from engaging in competitive activities for a certain period. However, it is crucial that the non-competition agreement has reasonable terms and duration, which was not the case with the shareholders’ contract.

The shareholders pointed out that the current shareholder contract was unfair as it restricted CEO Min Hee-jin from competing with the company only if she no longer held any shares. It was only natural for them to seek a solution to this issue. In response to HYBE’s statement last December, they stated that there were discrepancies in the interpretation of the contract’s clauses related to the sale and that they would address these vague areas. However, legal experts found the language to be clear, and CEO Min Hee-jin had no choice but to abide by the competition ban until HYBE gave their consent for her to sell her shares. Despite their promise to clarify the contract in December, it was not until mid-March of this year that they provided

ADOR has also stated its official stance on the subsequent reports about the shareholder contract. The agency clarified that HYBE’s claims of CEO Min Hee-jin’s insistence on 30 times the put options as the root cause of the current conflict are misleading. The agency further explained that the proposal for 30 times the put options was simply one aspect of the negotiations to amend unfair terms in the shareholder agreement, taking into consideration the potential future value of producing a boy group. It was not considered a top priority in the negotiations.

ADOR announced that in March of last year, they signed a stock trading agreement and shareholder contract with HYBE. As part of the agreement, HYBE promised to give CEO Min Hee-jin a 10% stake in ADOR through stock options. However, upon seeking legal advice, it was discovered that according to the Commercial Law, stock options cannot be granted to Min Hee-jin as she is a major shareholder. It should be noted that these stock options were not requested by Min Hee-jin, but were suggested by HYBE. This revelation caused Min Hee-jin to feel deceived by HYBE, ultimately damaging their trust in each other.

According to sources, HYBE has denied claims that they proposed lifting the competition ban for CEO Min Hee-jin and that she rejected it. Instead, their proposal was for Min Hee-jin to serve for 8 years and then observe a 1-year competition ban after her retirement. They also suggested implementing put options gradually during this time period. However, during the negotiations for the shareholder contract, there was a disagreement over ILLIT issues that is still ongoing. CEO Min Hee-jin has not commented on HYBE’s proposal and the reports of her refusal are inaccurate.

Additionally, ADOR responded to HYBE’s allegations that Min Hee-jin relied on a shaman to oversee the company. ADOR defended their success and swift progress by stating that it was due to logical decision-making and strategic management. HYBE’s accusations appear to be an attempt to discredit ADOR’s achievements. The rise in sales and operating profit for ADOR can be attributed to their diligent efforts in cutting unnecessary expenses, effectively managing budgets, and working together to enhance the brand’s image. If HYBE’s claims were true, it would be illogical for CEO Min Hee-jin and the ADOR team to work tirelessly day and night. It is disappointing that HYBE, a company that is expected to lead in the K

Finally, ADOR stressed their commitment to supporting NewJeans’s endeavors in the future. They hope that HYBE will prioritize protecting intellectual property and considering the shareholders’ interests, and refrain from making baseless accusations. ADOR urges HYBE to take a reasonable approach and acknowledge ADOR’s unwavering dedication to innovation and creation.