The last few days have seen a great deal of controversy around the Korean entertainment industry. It all began when HYBE revealed on April 22, 2024, that it was beginning an audit on its subsidiary ADOR, sending a shockwave through the K-pop industry. It only became more chaotic: CEO of ADOR Min Hee-jin charged HYBE of ripping off parts from the K-pop girl group NewJeans in a dramatic two-hour press conference. There has been a series of events in which both juggernauts have issued public statements accusing one another. Most recently, ADOR issued another response to HYBE.
In response to HYBE’s comments on ADOR CEO Min Hee Jin’s April 25 press conference, ADOR issued a thorough rebuttal on May 2. Soompi posted the statement after translating it.
ADOR released a detailed 9-point statement.
The statement reads, “We would like to provide accurate facts regarding HYBE’s claims.”
The first one addresses the “takeover of management rights.” ADOR dismisses HYBE’s accusation, labelling it “baseless.” They claim there was no plan or execution for this. ADOR’s VP asked HYBE to stop the public conflict, but HYBE pressured them, mentioning legal action and threatening with “Think about your family.” HYBE allegedly manipulated communications and edited Min Hee-jin’s remarks.
“Regarding financial compensation.” According to the statement, Min Hee-jin clarified that the “incentive” is 2 billion won for achieving profits, not her salary. Her concern was the unclear criteria and lack of transparency in determining incentives. ADOR believes HYBE’s mention of Min Hee-jin’s pay and incentives is an attempt to depict her as financially driven.
“Regarding the internal whistleblowing and audit process.” CEO Park Ji-won allegedly responded to ADOR’s whistleblower email on April 22. Soon after, HYBE launched an audit, confiscated the VP’s laptop, sought Min Hee-jin’s resignation, and convened a shareholder meeting. News outlets disclosed the audit’s activation and highlighted HYBE’s aggressive media efforts. ADOR disputes HYBE’s response and criticizes their public disclosure of audit findings during a critical point in a subsidiary label’s artist comeback.
“Regarding HYBE’s promise to debut [NewJeans] as the first girl group.” HYBE initially called NewJeans their first girl group, later replaced by LE SSERAFIM. They allegedly continue to claim NewJeans as their first. Min Hee Jin proposed ADOR, giving up her shares, and transferring NewJeans to ADOR. HYBE said NewJeans’ debut was delayed due to a corporate split, which ADOR denies.
“Regarding the request not to promote NewJeans’s debut.” ADOR disputes HYBE’s claims about Sakura and NewJeans. They reject HYBE’s explanation for promotion delays and allege HYBE tried to create uncertainty about LE SSERAFIM. CEO Park Ji-won reportedly instructed Min Hee-jin not to promote NewJeans.
“Regarding the claim that it was not a slave contract.” Min Hee-jin acknowledges the importance of a non-competition clause but finds the current shareholders’ agreement unfair. She can only be freed from it by selling all her shares, which she considers unjust. Contrary to HYBE’s announcement, they accused Min Hee-jin of leaking the shareholders’ agreement. HYBE claimed to have addressed the unclear clause in December but only delivered a new proposal in March.
“Regarding follow-up reports on the shareholders’ agreement.” The media misinterpreted the shareholders’ agreement after HYBE’s reaction. HYBE claimed Min Hee-jin requested a 30x increase for the put option, implying a money-driven motive, but it actually reflected the future boy group’s production value. HYBE promised Min Hee-jin an extra 10% share in ADOR as stock options, but legal counsel indicated this was not permitted under the Commercial Code. Min Hee-jin did not oppose HYBE’s suggestion to lift the non-competition agreement. HYBE proposed an eight-year term with a one-year non-compete clause following departure, but the ILLIT controversy occurred, leading to the current scenario.
Min Hee-jin has not refused HYBE’s proposition, the statement says.
“Regarding the fact that the shaman is simply a friend.” HYBE’s attempts to undermine ADOR’s achievement are based on the premise that NewJeans’ success and ADOR’s accomplishments are not sensible commercial decisions. ADOR’s revenue and profit are derived from properly managing expenditures and improving brand image, not from personal defamation, the statement said.
“Regarding the fact that HYBE does not cherish NewJeans.” HYBE announced the audit to the media on April 22 without waiting for results, claiming an “impossible takeover of management rights” without evidence and without listening to ADOR internally, sparking the issue before NewJeans’s comeback.
ADOR says it is focused on supporting NewJeans’s activities and hopes HYBE will stop spreading malicious propaganda and support ADOR for a reasonable resolution.
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