HYBE, the worldwide entertainment giant behind BTS and other big K-pop bands, is apparently considering substantial alterations inside its subsidiary, ADOR, which manages the NewJeans label. Industry officials said on April 22 that HYBE had started an audit of ADOR management following an inquiry into ADOR’s ambitions including CEO Min Hee-jin, to become independent.
NewJeans are housed under the HYBE label ADOR, which Min Hee-jin created in 2021. HYBE owns 80% of ADOR, with Min Hee-jin and ADOR management holding the remaining 20%, according to Soompi.
According to the website, HYBE reportedly conducted a shareholders’ meeting to hold ADOR management accountable and select another ADOR director from HYBE, as both of ADOR’s present directors joined the firm alongside Min Hee-jin from SM Entertainment.
Further information said that Min Hee-jin’s resignation as CEO of ADOR was requested in a document submitted by HYBE. According to Korean media outlets, the audit addresses allegations of improper foreign consulting, leaks of private artist information, leaks of critical information, and irregular staff practices. The ADOR CEO, Min Hee-jin, as well as deputy CEOs A and B, received the audit. In order to confirm any plots to seize control of ADOR’s management privileges, an audit questionnaire was created.
It was alleged that HYBE found circumstantial evidence throughout the audit process indicating that the present internal management of ADOR (Min Hee-jin, deputy CEOs A and B) had received outside advice about ADOR management. The consultation would assist them in creating a strategy to oust HYBE’s management powers.
Korean media further reported that ADOR has reportedly been planning to do this since the beginning of 2024. After ADOR’s internal management won over investors, they purportedly intended to force HYBE to surrender its 80% ownership in ADOR.
The strategy would involve swaying public perception to make it appear as though HYBE is making unjustified demands of ADOR.
It was revealed that Min Hee-jin and the deputy CEOs A and B had willfully disclosed different pieces of information to foreign investment advisers, private equity companies, analysts, and consultants as they were working on this covert scheme.
The material that was released included contract details that were signed by HYBE and ADOR. They were also accused of trying covertly to sway public perception of HYBE musicians in order to harm HYBE’s reputation as a whole. They reportedly had previously spoken to the parents of ADOR musicians in an attempt to persuade them.
Right now, ADOR only applies to NewJeans.
According to reports, Deputy CEO A was instrumental. He had only recently transferred from HYBE to ADOR, where he had obtained several important trade secrets from HYBE and used them to create ADOR’s strategy for obtaining management rights. This contains financial and contractual details.
Furthermore, the auditing procedure purportedly demonstrated that information about private artists was compromised. This includes images and videos of the trainees prior to their debut as well as different personal health information.
According to Korean news outlets, HYBE received information about these charges and disclosures through an anonymous tip. They then released the audit to make the tip-off’s details clear.
“It is true that an audit was initiated,” HYBE said in a short statement to the Soompi in reaction to the claims.
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