An report has been shared by HYBE, which aimed to disclose the details of the company's audit of ADOR. HYBE has also declared its plans to file a formal accusation against Min Hee Jin.
Read more to learn further details.
HYBE To Accuse Min Hee Jin For Breach of Trust, Releases Report On Audit Of ADOR
Earlier on April 22, HYBE commenced an audit of ADOR's management after the company had reportedly noticed its attempts to become an independent label.
Outlets also reported that HYBE had requested Min Hee Jin's resignation as ADOR's CEO.
This led ADOR to release an official response to the audit, which claimed that the concept of NewJeans' concept is being copied by HYBE and BELIFT LAB.
On April 25, HYBE shared a press release, containing a declaration of their plans to formally accuse Min Hee Jin, alongside other affiliates, of breach of trust.
The company also revealed that sufficient evidence of Min Hee Jin seizing HYBE's management rights has been collected. Read the full statement below:
"Based on the findings of the audit, HYBE has confirmed and gathered solid proof of a plan to seize management control, which was planned under the ADOR CEO's direction.
One of the audit staff submitted digital evidence showing the plan to seize control of the management and make contact with outside investors, as well as also admitting the action of having written documents to attack HYBE during the inspection.
According to the face-to-face investigation and conversation transcripts the intelligence assets have submitted, the CEO of ADOR commanded the management team to come up with ways how to pressure HYBE to sell its ADOR shares.
As a response to this endeavor, methods were discussed along the way, specifically on how to terminate exclusive contracts with artists and nullify the contracts between ADOR's CEO and HYBE.
The were also conversations such as 'Let's draw global funds and make a deal with HYBE,' 'Counterattack everything HYBE does critically,' and 'Think of ways how to harass HYBE.'
The transcript also contained certain action plans such as 'preparing for a battle of public opinion in May,' and 'turning ADOR into an empty shell and removing it.'
HYBE has also retrieved a statement from the auditee, stating 'the phrase 'ultimately exiting HYBE' was a transcription of the words from the CEO of ADOR.'
HYBE CEO Park Ji Won stated, "We apologize to our fans, artists, and staff for the inconvenience this situation has caused during the process of upgrading the multi-label."
The CEO added, 'Now that the incident is nearing its end, we will bring out our maximum efforts for counseling and stabilize our artists' mental health, as they are valuable assets of the K-pop industry."
Korean news outlets also shared a conversation between ADOR's Vice President "A" and Min Hee Jin. Read the conversation below:
A: "There is also this option.
- Put option _% exit on January 2, 2025 (Operating profit in 2023: 33.5 trillion won / 2024 approximately _ won, the average pre-tax cash out of around _ won)
- ADOR turns to an empty shell / Lawsuit filing for rights infringement
- Look for financial investors (CEO Min + plan to purchase ADOR away from HYBE)
- Suggest HYBE to sell ADOR
- Sell at a reasonable price
- CEO Min becomes ADOR CEO + who also acquires ADOR shares with the cashed out money + signs _ contract"
A: "Should this happen, the remaining _% that wasn't able to sell in the past will become useful again."
Min Hee Jin: "Wow."
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