On April 26, HYBE Labels issued an official response addressing the allegations made by Min Hee-jin during her press conference on April 25.
The following is a brief overview of HYBE’s reaction:
Min Hee-jin Addresses Claims of Not Planning to Separate from HYBE
The conversation pertaining to the same topic has been ongoing for months and is documented in the chat logs and work logs. However, with the involvement of a third party, it has evolved from a private discussion to a tangible plan.
Moreover, CEO Min had a discussion with the vice president, who is a certified accountant with expertise in business administration and also holds a key executive director position at ADOR. This is not to be taken lightly.
Regarding the allegation that the financial compensation amount is meager:
CEO Min clarified that her annual salary of 2 billion won is specifically designated as the bonus for the year 2023. Her annual salary and long-term benefits are regulated separately. This amount also marks the highest annual salary among all employees at HYBE’s headquarters and its subsidiaries in South Korea.
HYBE not only offers employees a competitive salary, but also includes a substantial stock compensation package that is beyond the reach of most individuals. Unfortunately, CEO Min has once again proposed a figure that the company is unable to agree to.
Regarding the Allegation of Negligence in Response to Min Hee-jin’s Internal Email by HYBE:
HYBE responded in detail with a 6-page A4 document at 10:01 AM on April 22nd. CEO Min was confirmed to have read the response by 12:00 on the same day.
The audit was carried out in response to multiple reports received by HYBE over a period of several months, and after confirming the unauthorized disclosure of confidential business documents. It is not appropriate to expect advance notice of audit schedules in cases of serious misconduct.
Response to the Allegation of Lack of Guidance on Returning ADOR’s Information Assets
At 10:00 on April 22nd, HYBE visited CEO Min’s studio and house to gather information as part of the inspection process. Despite multiple attempts through phone calls, emails, and messages, HYBE was unable to reach CEO Min for a response.
At 6:00 pm on April 23rd, when the return deadline had passed, HYBE once again requested assistance from ADOR’s vice president. However, they were informed that CEO Min was occupied and unable to fulfill the request.
According to CEO Min, the computer was confiscated to prevent any disruptions to work before (NewJeans‘) comeback, which was not the case. In order to ensure that ADOR’s work was not interrupted, HYBE provided a new laptop and transferred all existing data.
Regarding the issue “HYBE promised to debut Min Hee-jin’s group as the first female group of the company”:
This is the email that was sent to CEO Min on April 22nd:
“CEO Min is misinterpreting the separation process from Source Music and making inaccurate statements. Contrary to her claims, HYBE did not break its promise to make NewJeans the first girl group under their label. In fact, at the time, CEO Min had requested to take full responsibility for establishing the group and insisted that they debut under her label.”
Despite Source Music’s objections, HYBE showed respect for her opinion and proceeded to transfer these members to ADOR. In addition, they provided a substantial investment of 16 billion won, enabling CEO Min to debut NewJeans according to her wishes. However, the company’s split and contract transfer resulted in a delay in NewJeans’ debut schedule.
During an interview with a media agency on 3/24/2022, CEO Min revealed the process behind the girl group project. She shared that the debut date was carefully planned and scheduled for the 3rd quarter of 2022. She also expressed her belief that rushing the debut would add unnecessary pressure on the young members and stated, “I want to ensure a reasonable amount of time for everyone, so we have decided to debut in the 3rd quarter of 2022.”
Response to Allegation of HYBE Requesting No Promotion for NewJeans During Debut Period
LE SSERAFIM and NewJeans were both introduced in quick succession, leaving little time for proper promotion. As a result, HYBE made the decision to establish a minimum promotion period within a specific timeframe. Furthermore, before officially signing with HYBE, there were numerous articles circulating about Sakura (from LE SSERAFIM) potentially transferring to HYBE. Given this circumstance, if we were to label ADOR’s group as “consisting solely of new members,”we are worried that information about Sakura joining Source Music and the identities of NewJeans members may also be revealed.
The request was made to safeguard the news value of both teams, resulting in a shortened period in between to begin promoting NewJeans.
We responded to CEO MIN via email:
Moreover, CEO Min’s interview was released two months prior to the debut of LE SSERAFIM (5/22/2022), indicating that CEO Min had ample time to promote the upcoming girl group. His statement contrasts greatly with the views of the employees, who are fully aware of the unwavering support and concessions provided by Source Music and HYBE for the success of ADOR.
Regarding the Allegation of Neglecting to Promote NewJeans by HYBE:
HYBE shared with us their email stating that they are putting in maximum effort to promote NewJeans. In the past year, they have written and distributed 273 press releases solely for NewJeans. In comparison, BigHit Music had 659 press releases for 8 artists, including BTS, and Pledis had 365 press releases for 4 artists, including SEVENTEEN. This shows that HYBE is dedicated to promoting NewJeans and cannot be accused of neglecting it. Their PR department works tirelessly to promote all labels and artists equally.
Answering the accusation of “Slave contract”:
Despite the obligation to keep the non-compete terms confidential in the shareholder agreement, CEO Min publicly discussed them during a press conference. The “non-compete”clause is typically requested by buyers to prevent unfair competition from shareholders who sell their shares and enter the same industry. It is a standard provision in any industry.
Stating that the company has a permanent hold on Min Hee-jin is inaccurate. CEO Min is able to begin selling shares in November of this year, and if she chooses to do so, she will no longer be obligated to abide by non-compete agreements starting in November 2026, when her employment contract with the company concludes.
CEO Min explicitly stated, “I have the potential to earn 100 billion won if I remain in this position,”and has the option to withdraw the funds and pursue a new venture in the following year. This cannot be deemed as enslavement, as these are exceptional compensation conditions that the average person would not conceive. Furthermore, in her KakaoTalk conversations with colleagues, CEO Min has expressed her intention to exercise the option to sell her shares and depart from the company on January 2, 2025.
CEO Min has claimed that the provision regarding buying and selling in the contract is a form of slavery. However, there is a disagreement over the priority of these two provisions. In December of last year, the company stated that they would address and revise any unclear terms if the interpretation is unclear.
Request to Manage ESG (Environmental, Social, and Governance) in Physical Album Releases:
We are committed to implementing ESG management practices to the best of our abilities. CEO Min expressed disappointment in the environmentally friendly album that the company has been actively promoting. In order to replace plastic with paper for album covers and photocards with biodegradable materials, HYBE had to allocate significant resources. The ESG management board is prepared to support and invest in these changes. Our goal is to eventually have all labels under HYBE adopt environmentally friendly albums, although it is acknowledged that ADOR has been the least receptive to this initiative among internal members.
Regarding the accusation that HYBE does not make negotiating efforts:
Despite ongoing discussions about changes to the contract between CEO Min and shareholders, HYBE was forced to temporarily suspend these talks due to allegations made by CEO Min. However, HYBE responded with transparency and addressed the allegations. Meanwhile, CEO Min covertly sought advice from lawyers and accountants within HYBE on altering the contract with shareholders, in addition to reaching out to law firms and institutional investors to discuss taking over management control.
Discussion about the statement “The shaman is just a friend”:
It cannot be denied that outsiders who intervene in management details cannot simply be regarded as friends. The discussion between CEO Min and the lawyer involved various aspects of the company’s operations, such as stock options and investor names, and decisions were made based on the lawyer’s recommendations on management matters. This conversation partner cannot be regarded as a mere acquaintance. The indiscriminate disclosure of important company information to non-company officials has occurred.
Hybe’s Response to Accusations of Neglecting NewJeans Before Comeback
During the NewJeans comeback period, CEO Min was the one who launched an attack on HYBE through email. According to the investigation data, there is evidence of CEO Min instructing his team to prepare for a public relations battle starting in April. Additionally, there is a file containing actions aimed at causing controversies and harassing HYBE.
CEO Min is currently posing a threat to HYBE by holding one of their artists hostage. While the acceptance of the compensation plan would be beneficial, CEO Min is using the plan’s rejection as an opportunity to end their relationship.
The source of the article is Naver and the VKR website.
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