HYBE Releases Interim Report About Audit Of ADOR + To File Formal Accusation

Apr 24, 2024

HYBE has shared an interim report about the audit of ADOR.

Previously on April 22, HYBE initiated an audit of the ADOR management after reportedly detecting attempts by ADOR to become independent. Following this, ADOR responded with a statement containing accusations of NewJeans’ concept being copied.

On April 25, HYBE announced that a formal accusation will be filed against ADOR CEO Min Hee Jin and related individuals for occupational breach of trust.

HYBE shared the following press release about the audit:

According to the audit results, HYBE confirmed and secured concrete evidence that a plan to usurp management control was established under the direction of ADOR’s CEO.

One of the auditees submitted digital evidence containing information about the plan to seize management control and contact outside investors and admitted that they had written documents to attack HYBE during the investigation.

According to face-to-face investigations and the conversation record from the submitted digital evidence, the CEO of ADOR instructed the management team to devise ways to pressure HYBE to sell the ADOR shares it holds.

In response to this directive, specific discussions took place on ways to prematurely terminate exclusive contracts with artists and invalidate contracts between the CEO of ADOR and HYBE. Conversations such as, “pull in global funds and make a deal with HYBE,” “critically counterattack everything HYBE does,” and, “think of ways to torment HYBE” also ensued.

The conversation record also contained execution plans such as “preparing for a battle of public opinion in May” and “making ADOR an empty shell and taking it away.”

HYBE also obtained a statement from the auditee that “the wording ‘ultimately leaving HYBE’ was written exactly as what the CEO of ADOR said.”

HYBE CEO Park Ji Won said, “I am apologetic for causing concerns to fans, artists, and personnel [of the labels] for what happened in the process of upgrading the multi-label [system],” and added, “Now that the incident has come to a conclusion, we will maximize our efforts for the psychological counseling and emotional stability of the artists, who are valuable assets of K-pop.”

Below is a conversation shared between ADOR’s vice president “A” and Min Hee Jin:

HYBE Releases Interim Report About Audit Of ADOR + To File Formal Accusation

"“A”: There is this option also

– Put option __% exit on January 2, 2025 (2023 operating profit: 33.5 trillion won / 2024 approximately __ won, average pre-tax cash out of approximately __ won)
– ADOR becomes an empty shell / File a lawsuit for infringement of rights
– Seek financial investors (CEO Min + plan to buy out ADOR from HYBE)
– Suggest that HYBE sell ADOR
– Sold at a reasonable price
– CEO Min is the CEO of ADOR + acquires ADOR shares with the cashed out money + newly signs __ contract

If this happens, the leftover __% that wasn’t able to be sold in the past becomes useful again

Min Hee Jin: Wow"

Stay tuned for further updates.

cr: Soompi