Kim Eo-jun, a journalist, invited economic critic Park Si-dong as a guest on his YouTube channel on April 29 to discuss the ongoing “Entertainment Dispute Over NewJeans”. The discussion centered around the controversial situation surrounding HYBE’s alleged attempt to take over management rights of CEO Min Hee-jin at ADOR, as reported by multiple sources.
During the discussion on the establishment of ADOR, Park provided information about its background, stating, “HYBE fully invested 16.1 billion won to create the company.”He also mentioned that after CEO Min Hee-jin successfully launched the popular group NewJeans, she requested a bonus and was given 18% of ADOR’s shares, as per the agreement with HYBE.
Kim Eo-jun expressed his negative opinion, stating that HYBE had most likely provided ADOR with the maximum support they could offer to CEO Min Hee-jin. He also noted that despite her claim of single-handedly bringing in trainees and leading them to success, the company had recorded 110 billion won in sales last year. Furthermore, he conservatively valued ADOR at 600 billion won, with Min Hee-jin’s 20% shareholding worth over 100 billion won.
“According to Park, there has been some speculation about whether Min Hee-jin can solely take credit for the success of NewJeans or if it is due to HYBE’s resources. While Min may have played a significant role in NewJeans’ rise, it cannot be denied that HYBE’s resources, including their immensely popular YouTube channel with 75 million subscribers, played a crucial part in their success. Additionally, NewJeans’ association with BTS as their sister group also contributed to their popularity in the global market. Some critics argue that Min’s self-awareness of her role may be exaggerated.”
In reply, Kim Eo-joon acknowledged the importance of having a strong sense of self as a creator, but raised concerns about the extent to which she utilized HYBE’s resources, including capital, infrastructure, reputation, and expertise.
The person inquired, “Is it similar to a director who achieved a major success with a great idea and received a 10 billion won bonus, but believes that the idea for the new product is also his, making it his as well?”
According to Park, the company (HYBE) should have ownership and management rights from a capitalist perspective. CEO Min Hee-jin stated that she has the capability to succeed regardless of who she works with and had numerous offers for investments. However, she chose HYBE and sees it as her own company. Therefore, she believes that HYBE should be grateful for receiving their investment.
Both Kim Eo-jun and Park expressed disapproval towards Min after she accused ILLIT of plagiarism. According to Park, Min, being a CEO who had previously debuted celebrities, faced backlash for targeting ILLIT. Additionally, HYBE claimed that Min had been attempting to gain control of management long before ILLIT’s debut. Park also pointed out that while NewJeans received 16.1 billion won in investment, ILLIT received 150 billion won, but NewJeans did not view themselves as being on the same level.
During their conversation, they also discussed CEO Min’s use of the term ‘slave contract’ during her press conference. The speaker remarked, “Considering the total amount of compensation that Min has received and the remaining balance after all additions and deductions, her reward is substantial.”
“One of the main drawbacks of unlisted stocks is their lack of liquidity, as they cannot easily be converted into cash. However, HYBE’s decision to offer an exit plan to Min is seen as a significant advantage,”stated Park. Recent media coverage suggests that HYBE’s valuation is based on 13 times its operating profit. According to this estimate, Min could potentially receive around 100 billion won (approximately 9.8 million U.S. dollars) by exercising put options on HYBE. Critic Park pointed out, “However, HYBE has stated that CEO Min requested a valuation of 30 times the operating profit, not 13 times. If this turns out to be true, Min could potentially receive 300 to 400
Kim Eo-jun stated that although the company has not yet made a significant amount of money, she was requesting for them to give up 400 billion won. Moreover, Park Jin-young is the owner of approximately 400 billion won in JYP, which is the value of his stake accumulated over his lifetime. CEO Min expressed disbelief at the notion of the woman demanding 400 billion won simply because she was responsible for creating NewJeans. He deemed this request to be nonsensical.
In brief, he stated that labeling this as a slave contract is illogical. He believes she should refrain from using that terminology.
https://www.youtube.com/watch?v=//www.youtube.com/watch?v=YLTaG9yKLIE
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