We would like to provide an accurate account of HYBE's claims.
We express deep regret that once again, at a crucial moment when New Jeans new album was announced, we had to release a statement not about them, but with other news.
ADOR has repeatedly requested, in conversations with the media, that HYBE refrain from spreading issues other than artist-related news to prevent issues that could harm New Jeans. HYBE previously stated that they would not argue against Min Heejin's press conference. However, we express deep disappointment and regret at HYBE's decision to resume arguing through the media shortly after.
Despite HYBE's rebuttal, ADOR did not respond in order to protect the value of artist activities. But with ongoing confusion caused by unverified issues, ADOR would like to clarify the accurate facts regarding the current controversy.
1. Regarding the alleged seizure of management rights:
HYBE's claim of "seizure of management rights" is a baseless and groundless assertion. Furthermore, the evidence presented is not aimed at seizing management rights but rather emerged from ongoing conflicts with HYBE. We once again emphasize that there were no specific plans or actions aimed at seizing management rights.
As gratitude began and the negative public opinion intensified, a vice-president deeply concerned about Min Heejin's safety visited key executives of HYBE to request an end to the one-sided public opinion warfare. However, HYBE executives responded by saying, "This isn't the time to worry about Min Heejin. If you get sued, as the person responsible, how will you bear the damages? Think about your family," pressuring the vice-president to cooperate with HYBE. They made the vice-president sign a consent form under psychological pressure, assuring that there would be no problem if they cooperated. The next day, the contents of the vice-president's KakaoTalk were exposed in the media. This is a serious invasion of privacy and a violation of human rights.
Recently, Min Heejin's legal representative, inquiring at the Yongsan Police Station for the submission of evidence, confirmed that the vice-president, who was the author of the document, had been excluded as a defendant.
HYBE maliciously misrepresented the conversation without considering the context, making it appear as if Min Heejin's original intention was to seize management rights, and deliberately publicized it extensively in the media. Min Heejin's statement, "This should be a private conversation," was also manipulated, as it had no relevance to the content being misrepresented.
2. Regarding Financial Compensation
Previously, Min Heejin stated in the press conference that her compensation was not a salary but rather an "incentive" of 20 billion won. This was compensation for achieving 335 billion won in operating profit within two years of ADOR's establishment.
As mentioned in the press conference, the issue raised regarding the calculation of incentives was not about the amount itself, but about the criteria for determining incentives and the transparency of that decision-making process. Min Heejin felt that HYBE's criteria for determining incentives were unclear, and there was a lack of clear explanation regarding the process of calculating incentives.
Distorting the facts regarding these incentives and mentioning Min Heejin's salary, incentives, and stock rewards while clouding the issue is nothing but an attempt by HYBE to frame Min Heejin as being motivated by financial greed.
3. Regarding Internal Whistleblowing and Audit Process
On April 22nd at 10:00 AM, Park Jiwon as the CEO of HYBE, reportedly responded to ADOR's internal whistleblowing email. At the same time, HYBE initiated an audit by seizing the representative's laptop. Additionally, HYBE sent a letter demanding the resignation of Min Heejin and requesting a shareholders' meeting. Then, news articles about HYBE's sudden activation of audit rights over Adoer's management were reported consecutively just a few hours later. The next day, articles continued to be published almost like a live broadcast due to HYBE's aggressive media activity targeting individuals. HYBE, we'd like to ask: What response did you provide to Min Heejin's internal whistleblowing email?
Furthermore, we'd like to ask: What kind of audit process for a publicly traded company involves publicly disclosing audit content and editing reports with unverified information as if it were a live broadcast? Moreover, artists under HYBE's labels were about to make comebacks.
This activation of audit rights is causing serious disruption to the work of Min Heejin and ADOR's employees who have been working day and night ahead of New Jeans' comeback. HYBE claims to provide new laptops immediately and download existing data to ensure smooth workflow, but this is not true. The representatives' laptops were seized without even allowing time to download existing work materials. The seizure process was also unreasonable.
4. Regarding HYBE's Promise to Debut New Jeans as their First Girl Group
HYBE has publicly designated New Jeans as Min Heejin's girl group and HYBE's first girl group since the "Plus Global Audition." This is a fact that New Jeans' parents and former ADOR employees all remember as witnesses. Eventually, with the addition of Sakura and Chaewon, HYBE debuted LE SSERAFIM as their first girl group, failing to keep their promise. Even though it has been revealed that HYBE did not keep its promise, HYBE continues to make false claims without hesitation. At that time, Min Heejin relinquished her shares and requested the establishment of ADOR, enduring various disputes during its establishment and relocating New Jeans members to ADOR for debut.
Despite the truth about New Jeans' debut process, HYBE persists in lying about the fact that "due to the company's split and the transfer of contracts, the debut schedule of New Jeans was inevitably delayed regardless of HYBE's intentions."
5. Regarding the Part Where HYBE Forbid Min Heejin to Promote New Jeans' Debut
HYBE expressed concerns about the possibility of Sakura joining Source Music and information about the composition of New Jeans members being exposed simultaneously, this is not only untrue but also logically inconsistent.
It's not clear how stating that ADOR debut team is "composed only of rookies" is related to Sakura joining Source Music or why the revelation of ADOR's debut member composition would be problematic.
HYBE justified that "setting a minimum promotional period was decided due to the consecutive debut timing of the two teams, which lacked sufficient time for adequate promotion," but there was no such agreement. At that time, HYBE wanted to create confusion in the market by suggesting that LE SSERAFIM could be Min Heejin's girl group, leading to Park Jiwon, the CEO, openly asking Min Heejin not to promote New Jeans through phone calls and social media. This fact is confirmed by the SNS conversation records between Park Jiwon and Min Heejin, yet HYBE continues to change its stance, offering unrelated reasons.
6. Regarding Slave Contract
Min Heejin is not denying the necessity of the non-compete clause itself. As the representative of a company engaged in the entertainment business, she is well aware that engaging in competing businesses during the term of employment and for a certain period thereafter can be prohibited. However, the subject matter and duration of the non-compete clause should be reasonable, which is not the case with the current shareholder agreement.
Contrary to the official statement on April 25th, HYBE's rebuttal issued on April 26th, which was distributed to the media, shifted the responsibility for informing about the shareholder agreement to Min Heejin, while also partially disclosing its contents and refuting them.
The current unfairness of the shareholder agreement lies primarily in the fact that Min Heejin should be freed from the non-compete obligation once she no longer holds shares, and it would be natural for anyone to seek to rectify such unfairness. HYBE claims in its rebuttal that it responded last December, saying, "There were differences in interpretation regarding the sales-related provisions in the contract, and we will resolve the ambiguous provisions," but the content is not ambiguous to any legal professional, and Min Heejin must continue to bear the obligation of non-compete until she obtains HYBE's consent to dispose of all shares. While HYBE claims to have responded last December that it would resolve the ambiguous provisions, it was not until mid-March of this year that a proposal containing this content was received.
7. Regarding other follow-up reports related to the shareholder agreement.
After HYBE's rebuttal, numerous follow-up reports confirmed through the media have been rampant with speculation and distortions regarding the shareholder agreement. To clarify any further misunderstandings:
HYBE is deceiving by claiming that Min Heejin demanded a 30-fold multiplier regarding the put option, insinuating that the current conflict stems from financial motives. However, the 30-fold multiplier was a proposal reflecting the future value of producing a boy group and was just one of many proposals during the process of amending the shareholder agreement, not a priority item in negotiations and was fraught with various unreasonable elements.
Furthermore, HYBE promised Min Heejin an additional 10% stake in ADOR through stock options upon signing the shareholder agreement in March last year. However, legal advice revealed that stock options cannot be granted to Min Heejin as a major shareholder under corporate law. These stock options were not requested by Min Heejin but were proposed by HYBE. Min Heejin could not erase the judgment that HYBE had deceived her. It was a matter of 'trust.'
HYBE proposed lifting the non-compete obligation, and it is untrue that Min Heejin refused this. HYBE proposed that she serve mandatory employment for eight years and bear a non-compete obligation for one year after retirement, and the foot options would be exercised gradually in line with this period. However, amid the negotiations of the shareholder agreement, the issue of ILLIT arose, which continues to the present day. Min Heejin has not conveyed her position regarding HYBE's proposal. It is untrue that Min Heejin expressed her refusal.
8. Regarding Min Heejin's acquaintance who's a shaman
The success of New Jeans and the remarkable achievements of ADOR achieved in a short period of time are based on rational management decisions.
The origin of ADOR's sales and operating profit is due to preventing unnecessary expenses, efficiently managing budgets, and simultaneously working hard to enhance brand image, thus increasing its value. If it were possible as they claim, why would CEO Min Heejin and the members of ADOR work tirelessly day and night?
It's pathetic that HYBE, which should lead K-POP, not only attempted to frame it for personal defamation purposes unrelated to the issue, but also announced it just before CEO Min Heejin's press conference.
9. Regarding HYBE's treatment towards New Jeans
It was HYBE that announced the sudden audit on April 22 without even knowing the audit results, let alone having concrete evidence, alleging impossible claims like "seizing management rights," and triggering this issue before New Jeans comeback without even attempting to understand ADOR's position internally.
HYBE claims to have suggested "not mentioning the artists." If they deemed that bringing up issues that could be quietly resolved internally and attacking Min Heejin and ADOR externally wouldn't affect New Jeans' brand value, it's a fallacy to cover up their own misjudgments in management.
I hope the above helps dispel further speculation and misunderstanding.
-Fighting...
-Please let Cinderella wins.
-I'm cheering for you🐰
-Nicely written.
-'At that time, HYBE wanted to create confusion in the market by suggesting that LE SSERAFIM could be Min Heejin's girl group, leading to Park Jiwon, the CEO, openly asking Min Heejin not to promote New Jeans through phone calls and social media.' Oh my God...
-It matches the content of the press conference. Unlike HYBE, which releases articles with inconsistent statements, always changing their words.
-As time goes by, HYBE looks more and more pathetic. Min Heejin, fighting.
-But if the conflict deepens like this, ADOR will ultimately suffer... It seems like the legal battle needs to end quickly, although it hasn't even started yet.
-HYBE, you damn thugs.
-HYBE is really going downhill
-Are they crazy? Threatening the vice president's family??
-HYBE, just go to hell.
-"Think about your family." What's that? Are they gangsters?
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