On May 14th, Sejeong Law Firm, representing ADOR, released a statement in response to the accusation made by HYBE earlier on the same day.
“ADOR is hopeful that HYBE will cease making baseless accusations and unwarranted assaults on our management in order to evade accountability for the decline in the stock price.”
The incident was started by HYBE, not ADOR.
HYBE informed the media on April 22nd that an audit was being conducted and simultaneously requested a shareholders’ meeting. This was part of their plan to replace ADOR’s management, regardless of the results of the audit. HYBE’s actions, including baseless accusations of embezzlement by a stylist and a recent charge of stock price manipulation by ADOR’s Deputy CEO, demonstrate their intention to remove the current management board of ADOR in a malicious manner.
According to HYBE’s statements, Deputy CEO S sold 950 shares for approximately 200 million won on April 15th, in anticipation of HYBE’s audit on April 22nd, one week later. However, the ADOR management was not informed of HYBE’s audit plans beforehand. The profit made from Deputy CEO S’s transaction amounted to only 19 million won. It should be noted that S had signed a house lease contract on April 8th and sold the shares to cover the remaining balance. We have attached a document to provide evidence of this transaction. Therefore, HYBE’s accusations of undisclosed information and stock manipulation are baseless and unfounded.
HYBE’s released KakaoTalk messages were focused on discussing potential response strategies in case the ‘ILLIT’s plagiarism issue’ was brought up. The conversation explored options such as reporting the matter to the Fair Trade Commission if internal reports were not accepted, initiating external appeals to highlight the unfairness of the plagiarism, and informing others about the unjust treatment under the Unfair Competition Prevention Act.
It is ironic that HYBE’s initial dispute sparked all of these issues. Despite having the ability to resolve the unfair shareholder agreement, ILLIT’s plagiarism, and the problems with the stylist and Deputy CEO internally, HYBE chose not to do so. Instead, they have been misleading the public by selectively editing and manipulating facts, using provocative words without proper context, and causing exhaustion among the public.
We implore HYBE to cease their manipulation of conversations unrelated to the facts revealed in the audit, as well as their selective editing for their own benefit. In response, ADOR’s Deputy CEO A has expressed their intent to revoke consent for the provision and use of information through a notice of withdrawal on May 9th. Despite this, HYBE persists in violating the human rights of its employees. If this misconduct persists, we will take strong legal action, pursuing both civil and criminal charges against HYBE officials.
Currently, our main focus is on the highly significant project of reviving NewJeans through their comeback. We were delighted to receive the wonderful news that all tickets for their two-day fanmeeting at Tokyo Dome in Japan have been completely sold out. However, despite this positive development, HYBE continues to make baseless accusations against our label and disregards the promotion of our artists while repeatedly deceiving the public about protecting them. Unlike HYBE, who should be held accountable for the decline in stock prices, the ADOR management team is committed to fulfilling their responsibilities to our shareholders by devoting their efforts to NewJeans’ comeback activities.
Hence, we would like to once again pose the question to HYBE: Who should be held accountable for the recent decline in stock prices? Is it justifiable for HYBE, who has caused significant losses to many small investors due to the sudden drop in stock prices after facing investigation from the Financial Supervisory Service and prosecution for utilizing undisclosed information to avoid losses, to bring up this matter with the management team of ADOR? It is imperative for HYBE to reflect on who the term ‘evil’ truly applies to in their previous statement.
In its role as the parent company, HYBE should prioritize its core business activities. Additionally, we expect HYBE to refrain from using media tactics and instead present the truth in court with a responsible and respectful attitude, in order to protect their artists.
“Thank you.”
Leave a Reply