Min Heejin attempts a coup to sell ADOR over “ILLIT plagiarism,” leaks negative info about HYBE idols to divest New Jeans

Source: SPOTV

Infightings have emerged at HYBE with its subsidiary ADOR that houses New Jeans.

On the 22nd, HYBE began an audit of ADOR executives including CEO Min Hee-jin and Vice President A. According to reports, HYBE found out that ADOR executives to include Min Hee-jin and A were attempting to seize management rights and therefore exercised their right to audit the executives.

Personnel from the audit team visited ADOR’s management work area and seized company assets and began securing face-to-face statements. The plan is to take necessary legal action based on computer activity secured that day.

Min-Heejin, A, and others were caught by HYBE’s internal audit while discussing ways to induce HYBE to sell ADOR stocks. They even went as far leaking confidential contracts to attract investors.

In particular, HYBE suspects that A used his position to transfer a large amount of HYBE’s internal information to ADOR. A is someone that is in charge of IR in HYBE’s finance department and carried out HYBEs listing work, but recently moved to ADOR earlier this year. He’s reportedly known as “Min-Heejin’s right hand man” within HYBE.

ADOR is a subsidiary label created by HYBE in 2021 with capital of 16.1 billion won. HYBE has an 80% stake in the company. Min Hee-jin exercised a call option (right to buy stocks at a set price) and recently purchased 18% of ADOR shares, becoming ADOR’s 2nd largest shareholder.

There are voices in the industry that say Min Hee-jin, who is dubbed “New Jean’s Mother” was planning to ‘de-HYBE’ with New Jeans, and that the explosion was virtually over. There had been rumors circulating that Min Hee-jin wants to divest ‘de-HYBE’ and had staged a ‘coup’ against HYBE and that the relationship with HYBE Chairman Bang Si-hyuk was not good. This rumor is now official.

HYBE suspects that ADOR management leaked key information for the purpose of seizing management rights, received inappropriate external consulting and even leaked the personal information of HYBE idols before their debut. HYBE requested answers to these suspicions in the audit questionnaire sent.

In particular, there are claims that ADOR executives, including Min Hee-jin, planned to secure management rights by aggravating public opinion through media play under the pretext that HYBE was making unfair demands on ADOR an encouraging the company to sell its shares in HYBE to friendly investors.

During this process, ADOR management was reviewing the sale structure, and talking with securities analysts and foreign investment advisory company officials including leaking confidential contract information signed between ADOR, HYBE, and personal information of New Jeans members.

There are even claims that Min Hee-jin and others secretly worked to form negative public opinion about HYBE idols in order to put pressure on HYBE, sparking speculation that they attempted a so-called ‘reverse viral.’

In addition to activating it’s right to audit, HYBE has requested that ADOR’s Board of Directors convene a general shareholders meeting and also sent a letter requesting Min Hee-jin’s resignation. However, since ADOR’s board is filled with Min Hee-jin’s associates, there’s a possibility that they won’t respond to HYBE’s request to convene and it’s unclear whether Min Hee-jin’s resignation can actually happen quickly.

New Jeans is scheduled to release singles in Korea and Japan in May and June. Meanwhile, there are concerns that the disharmony between HYBE and ADOR may turn on a red light for their comeback. It’s highly likely that there will be no particular issues with New Jean’s activities but seeing as Min Hee-jin exerted great influence on the group, there is cautious speculation that the members may make moves depending on how the conflict develops.

Stay tuned for updates.