Korean entertainment company HYBE announced on April 25 that it will report CEO Min Hee-jin of ADOR, the agency that manages K-pop girl group NewJeans, to the police for breach of trust.
The decision came after HYBE said it uncovered evidence that Min Hee-jin planned to seize management control of ADOR.
ADOR CEO Min Hee-jin (HYBE)
NewJeans (Instagram)
“On April 25 KST, HYBE announced that the company will report CEO Min Hee-Jin of its subsidiary label ADOR to police for a breach of trust and other related allegations today,” HYBE said in a statement to Manila Bulletin.
It added, “HYBE secured substantial evidence to prove that Min deliberately led the plan to take over management control of the subsidiary, through the audit process.”
“The evidence included detailed discussions that Min has ordered the ADOR management to find ways to pressure HYBE into ultimately selling ADOR's shares. One of the audited parties submitted information assets to seize the management of ADOR and to attempt to contact external investors. The auditee also admitted to creating the documents to attack HYBE,” HYBE said.
According to HYBE, “In the meantime, HYBE will continue to provide attentive mental and emotional care to the company's artist NewJeans and best support for their upcoming comeback. The company will meet legal representatives of the respective members as soon as possible to discuss the plan to protect the act.”
HYBE owns 80 percent of shares in ADOR, an agency under the company. Min Hee-jin holds an 18 percent stake in ADOR.
The filing of the complaint stemmed from HYBE’s audit of ADOR on April 22 on suspicions that Min Hee-jin and others planned to take over ADOR.
HYBE sent an audit questionnaire to ADOR executives, who sent their replies by deadline on April 24.
According to Korean media reports, HYBE said based on face-to-face investigation and the conversation transcripts included in the submitted information assets, Min Hee-jin instructed executives to prepare a way to pressure HYBE to sell its shares in ADOR.
Based on the instruction, methods for terminating the exclusive contract with the artist [NewJeans] and invalidating the contract between ADOR’s CEO and HYBE were discussed in detail.
It said there were also conversations such as “Let's bring in global funds and make a deal with HYBE,” “critically counterattack everything that HYBE does” and “think of ways to harass HYBE.”
In addition, HYBE said the conversation log also included action plans such as “preparing for battle of public opinion in May” and “making ADOR an empty shell and taking it out.”
HYBE released a Kakaotalk conversation between Min Hee-jin and ADOR’s vice CEO.
The message read, "’We have these options,’ listing a series of methods to take control over ADOR by exercising Min's put option, leaving ADOR ‘an empty shell,’ getting a financial investor, asking HYBE to sell ADOR, selling ADOR and signing a new deal with a different company,’” Korea JoongAng Daily stated in its report.
“Wow,” Min Hee-jin replied.