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ADOR refuses HYBE’s usurpation claims, accuses label of publicising Min Hee Jin's 2 billion KRW salary
In a new full-fledged statement, ADOR has refuted HYBE’s claim of management rights takeover. They have further accused HYBE of spreading misleading information. Read to know the details.
There has been a raging war between K-pop giant HYBE and one of its subsidiaries ADOR. The feud began when on April 22, Monday morning HYBE used its auditory rights and launched an investigation against ADOR and its executives.
The feud since has come a long way, with ADOR CEO Min Hee Jin’s explosive conference and HYBE’s detailed follow-up statement. Now on May 2, 2024, ADOR has given a detailed statement refuting all claims made by HYBE regarding alleged takeover, compensation, shaman, and more.
ADOR releases detailed rebuttal of HYBE’s claims
On May 2, 2024, the HYBE vs ADOR battle took a new turn. A new detailed statement has been released by ADOR in response to HYBE’s statement to CEO Min Hee Jin’s press conference on April 25, 2024.
In the statement, ADOR wanted to provide facts in response to HYBE’s claims. They added regret over releasing a statement close to NewJeans’ new music schedule. They pointed out they had tried to ask HYBE to stop any media activities however, the second party did not adhere to the request.
ADOR in light of new developments finally sought its right to clarify facts from their perspective to avoid any sort of confusion.
1. Usurpation of management rights
ADOR called HYBE’s claim of trying to take over ADOR and its management rights utterly baseless. About the evidence found by HYBE, they said it was not intended for a coup but rather a result of ongoing conflicts. There was no plan of coup.
They also accused HYBE of pressuring the vice president of ADOR into signing a consent form and working with them to ensure no issues surround him. After this, his and Min Hee Jin’s messages were reworked by HYBE to show there was a takeover being planned.
2. Min Hee Jin’s salary and compensation
HYBE in their statement had claimed that CEO Min Hee Jin’s salary was 2 billion KRW including incentives which was more than anybody else at the company. In response, ADOR clarified that at the press conference, Min Hee Jin stated the incentive not her salary to be 2 billion KRW which was supposed to be given as ADOR had achieved 33.5 billion KRW in profits since its establishment.
ADOR also accused the label of wrongfully publicizing CEO Min Hee Jin’s salary, incentives, and stock compensation. They claimed this was a clear tactic adopted by HYBE to cloud the facts and depict CEO Min Hee Jin working for monetary gains. They clarified the ADOR CEO took up the issue in the conference to point out unclear methods of HYBE’s incentive calculation and not the amount.
3. Clarifying the audit and whistleblowing mail
Clarifying the issue of ADOR’s internal mail asking HYBE, they said there was no response but rather a full-blown audit which was overtly covered by the media. In the statement, ADOR asks HYBE why a parent company disclosed sensitive information about the audit to the media.
They pointed out the bad timing as they were preparing for NewJeans' comeback and confiscation of laptops and data heavily hindered the same.
4. NewJeans debut and requesting a halt in promotions
ADOR accused HYBE of not keeping its promise of making NewJeans first girl group of the label which was otherwise decided. CEO Min Hee Jin requested the establishment of ADOR so that NewJeans could debut. According to them, HYBE is lying about this delay to be nothing but circumstantial.
ADOR said that HYBE also asked CEO Min Hee Jin not to promote NewJeans and they have evidence to prove it. They further added no discussion happened on the issue of overlapping promotion schedules whatsoever.
5. Slave Contract
ADOR clarified the contents of the shareholders’ agreement were ambiguous and that the non-competition clause was unreasonable. CEO Min Hee Jin would continue to bear non-competition unless she sells all her shares. The revised proposal was HYBE was sent in March this year not December as they had claimed.
6. Shareholder’s agreement
ADOR says CEO Min Hee Jin did not demand a 30 percent increase in the put option for financial reasons but for the upcoming boy group. It was also to change unreasonable aspects of shareholder’s agreement. Initially, HYBE promised CEO Min Hee Jin an increase of 10% in stock however it was later scrapped. Additionally, CEO Min Hee Jin did not refuse HYBE’s non-competition obligation.
The clause made the CEO serve a compulsory tenure of 8 years and 1-year non-competition and put option to be exercised in stages. The CEO did not reject this at all, as opposed to what HYBE had claimed.
7. Shaman inclusion
ADOR clarified that the shaman is just a friend and nothing else. ADOR and NewJeans' success has nothing to do with it. It was achieved with hard work, meticulous research, and rational business decisions.
8. HYBE and NewJeans
ADOR accuses HYBE of irresponsibly acting with the audit and publicizing findings without paying heed to how it would affect NewJeans' brand value and name. They did not listen to ADOR’s point of view and fired this issue so close to NewJeans’ comeback. They accuse HYBE of misjudging the circumstances and acting in haste which signals a lack of understanding of label management.
The feud between HYBE and ADOR seems to have taken another heated step. In other news, NewJeans is making a comeback soon amid this controversy.
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