NewJeans’ Source by Source Music: Min Hee-jin, Self-Contradiction of All-Creation Theory

In 2020, Haerin and Danielle both signed trainee contracts. Shortly after, the final member Hyein was discovered online and passed her audition, ultimately joining Source Music.

So Sung-jin, the CEO of Source Music, handpicked Minji, Hanni, Haerin, Danielle and Hyein to receive training at the agency until the second half of 2021.

In 2019, Min Hee-jin made the move to HYBE, where she took on the role of CBO and was responsible for managing the brand across all of HYBE’s affiliated companies.

“She intends to oversee the creative direction for various labels and spearhead the debut of upcoming girl groups. Furthermore, she aims to establish a new label to enhance their scouting and music production abilities.”

Originally, Min Hee-jin was tasked with creating the debut lineup for Source Music. However, she instead decided to focus on establishing her own label, resulting in the creation of ADOR.

Min Hee-jin handpicked trainees from Source Music, specifically Minji, Hanni, Haerin, Danielle, and Hyein, and relocated them to ADOR. As a result, Source Music was reimbursed for the expenses incurred during their training.

Is Min Hee-jin considered the “mother”of NewJeans? She introduced them to the world and improved them in a way that no one else could. However, the individual who is truly responsible for “giving birth”to NewJeans is So Sung-jin. He devoted more than three years to their development.

Undoubtedly, Min Hee-jin has made significant contributions. As a result, she was duly recognized for her efforts. In the first quarter of 2023, the board of directors at HYBE granted her the opportunity to purchase ADOR’s shares (old shares) at a discounted price instead of receiving stock options.

This led to Min Hee-jin acquiring 18% (573,160 shares) of ADOR and becoming the second largest shareholder. For her, it was a strategic decision that enabled her to evade a 45% tax, making it a beneficial move.

Despite being a loss-making company, ADOR was able to generate 18.6 billion won in revenue and had an operating loss of 4 billion won in 2022. This is likely due to the fact that ADOR is an unlisted company, which was the reason for Min Hee-jin receiving shares in the first place.

Although Min Hee-jin did not receive stock options, she was able to avoid paying 45% tax at the time of acquisition by receiving shares from a loss-making company.

Additionally, stock options are only valid for use while holding the position. In the event that Min Hee-jin decides to break away, the stock will no longer be available. Nonetheless, shares can still be sold without restriction.

Min Hee-jin has also entered into put option contracts, which give her the right to resell at an agreed upon price. It is estimated that the size of the put options she has contracted with HYBE is approximately 100 billion won.

During an interview last year, Min Hee-jin stated, “I had received similar investment proposals from other locations at the time, so there was no specific reason why it had to be with HYBE.”

There is a potential for it to be misinterpreted. She benefits from HYBE’s system. The members of NewJeans also made use of HYBE’s trainee pool. She did not come across them; she specifically selected them.

The success of NewJeans can be attributed to Min Hee-jin. On the other hand, if the company were to fail, HYBE would be responsible. In other words, the credit for NewJeans’ success cannot be solely claimed by Min Hee-jin.

The original source can be found at dispatch.