ADOR vs HYBE: HYBE has initiated an audit of the management team of the subsidiary label, ADOR

HYBE has initiated an audit of the management team of the subsidiary label, ADOR.

According to the music industry on the 22nd, HYBE began an audit on Thursday morning targeting ADOR’s CEO Min Hee-jin and executive A. HYBE reportedly took action after detecting indications that CEO Min and others were seeking independence from the headquarters.

According to industry insiders, CEO Min portrayed NewJeans as if it were entirely her creation and actively promoted it externally, but in reality, it is known for cases resembling the hiring of a star PD who can just dress up a prepared meal. There are various stories circulating about CEO Min’s attempts to set up a new household with NewJeans and backstabbing, which further fueled frustrations.

The HYBE audit team reportedly seized company computer assets and secured face-to-face statements while investigating ADOR’s management.

It is known that HYBE discussed ways in which CEO Min and A solicited investors by leaking confidential contracts and encouraged the sale of ADOR shares owned by Hive. Hive suspects that A used their position to pass internal information to Adore.

Hive has demanded the resignation of CEO Min and A and convened a shareholders’ meeting with ADOR’s board of directors on the same day. Based on the audit materials secured that day, Hive plans to take legal action if necessary.

Meanwhile, CEO Min joined HYBE in 2019 and participated in new CI development and space branding for the new headquarters as the Chief Brand Officer (CBO). Later, she was appointed as the CEO of the new label ADOR under HYBE in 2022 and debuted NewJeans in July of that year, overseeing the entire production process.

Currently, HYBE holds 80% of ADOR’s shares, while CEO Min and the management team hold the remaining 20%. HYBE reduced its stake from 100% in the first quarter of last year to 80%. CEO Min exercised a call option to purchase an 18% stake  and became the second-largest shareholder.

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