HYBE, South Korea’s leading entertainment company behind K-pop artist BTS, initiated a probe into Min Hee-jin, the CEO of its subsidiary ADOR, which manages popular K-pop girl group NewJeans. HYBE has called for Min’s resignation, accusing her of attempting to spin off ADOR from HYBE, taking NewJeans with her, and conspiring to take over management.
In response, Min’s representatives criticized HYBE’s new girl group ILLIT for “copying NewJeans without consent, and when Min protested, she was asked to resign.”
HYBE confirmed on April 22. that the company had “launched an investigation into ADOR executives to gather evidence regarding the allegations, issued audit inquiries and sent a letter demanding the resignation of CEO Min Hee-jin.” HYBE also requested a shareholder meeting to replace the board of directors of ADOR and hold them accountable for allegedly conspiring to take over the company since the beginning of the year.
ADOR, established by HYBE in 2021 with a capital investment of 16.1 billion won ($11.7 million), has become one of HYBE’s most successful labels alongside Big Hit, which produced BTS. Last year, ADOR posted a revenue of 110.2 billion won, an operating profit of 33.5 billion won, and a net profit of 26.5 billion won. HYBE owns 80% of ADOR’s shares, with the remaining shares split between CEO Min (18%) and the management of ADOR.
HYBE is also considering legal action based on the audit results. In particular, HYBE is closely examining allegations that ADOR engaged in unauthorized external consulting by leaking confidential information such as non-disclosure agreements, pre-debut photos and health conditions of NewJeans members to external investors. HYBE is also investigating allegations that ADOR planned public opinion campaigns to manipulate public opinion against HYBE.
ADOR CEO Min Hee-jin is widely recognized as the key figure behind the meteoric rise of NewJeans, a K-pop girl group that debuted in 2022. Min began her career at SM Entertainment in 2002, where she worked with famous groups such as Girls’ Generation, f(X), EXO, and SHINee. She was recruited to HYBE by Chairman Bang in 2019. Under Min’s leadership, NewJeans enjoyed breakout success with hits like ‘Attention’, ‘Hybe Boy’, and ‘Ditto’.
HYBE’s falling out with Min began in late March when an internal document written by Mr. A, deputy CEO of ADOR and a close associate of Min, was discovered. “The document listed “goals” such as “making sure that [HYBE] cannot interfere with ADOR” and plans for a full departure from the agency,” said a source familiar with the matter. The document also revealed that Mr. A had downloaded substantial amounts of HYBE’s confidential information.
“HYBE had received reports since the end of last year that CEO Min was meeting with investors and seeking independence but initially overlooked them,” said an industry insider. “But HYBE decided to take action once Min’s statements received full support from the members and their parents, to prevent another “Fifty Fifty” situation.”
HYBE’s stock price plunged 7.81%, wiping out 749.7 billion won in market capitalization, following the announcement of the probe. This turmoil also casts doubt on NewJeans’ comeback, scheduled for May 24.
