HYBE Initiates Audit of ADOR Management, Min Hee-jin Amid Independence Attempt

HYBE, the parent company that holds an 80% stake in ADOR, has initiated an audit of ADOR's management, including, Min Hee-jin. This comes after reports that ADOR, a label founded by Min Hee-jin in 2021 and home to the group NewJeans, has been attempting to become independent from HYBE.

According to reports, HYBE has found evidence that Min Hee-jin was attempting to separate ADOR from HYBE. The company has demanded that ADOR hold an official shareholder meeting to reprimand Min Hee-jin and the label's executives for this attempt. HYBE has also reportedly requested that Min Hee-jin step down from her position as ADOR's CEO.

The audit is investigating allegations of improper foreign consulting, leaks of private artist information, leaks of critical information, and irregular staff practices within ADOR's management, including, Min Hee-jin and two deputy CEOs, had received outside advice on a strategy to oust HYBE's management powers and force the company to surrender its 80% ownership in ADOR.

The alleged plan involved swaying public perception to make it appear as though HYBE is making unjustified demands of ADOR. ADOR's management, report of willfully disclosing confidential contract details and trying to covertly influence the public's perception of HYBE artists in order to harm the company's reputation.

Why this matters: This high-profile conflict between HYBE and its subsidiary ADOR has significant implications for the K-pop industry. The outcome of the audit and any potential changes in ADOR's management could impact the future of the label and its artists, including the popular girl group NewJeans.

HYBE has called for a shareholders' meeting to hold the ADOR management accountable and to appoint an additional ADOR director from HYBE, as the two current directors came to ADOR with Min, power from SM Entertainment. In response to the allegations, HYBE has briefly confirmed that an audit was initiated to examine the situation and ensure proper governance at ADOR.

Key Takeaways

• HYBE initiated an audit of ADOR, its 80% subsidiary, including CEO Min Hee-jin.
• ADOR allegedly attempted to become independent from HYBE, prompting the audit.
• The audit is investigating improper practices, including attempts to oust HYBE's management.
• HYBE has called for a shareholders' meeting to hold ADOR management accountable.
• The outcome could impact the future of ADOR and its artists, including NewJeans.