Adoer Management Audit Launched Abruptly
Hive, the No. 1 music agency in Korea, has launched a sudden audit of the management of its subsidiary Adore, the agency of K-pop's leading girl group NewJeans.
According to the music industry on the 22nd, Hive began an audit this morning targeting CEO Min Hee-jin and Adore management executive A.
Personnel from Hive's audit team visited Adore's management office, retrieved the company's digital assets, and reportedly began securing face-to-face statements.
A Hive official said, "There are suspicions that someone is trying to take over (Adore's) management rights, so it is true that audit rights have been activated against Adore's management."
Adore was established in 2021 with an investment of 16.1 billion KRW in capital by Hive. Following the success of its first artist NewJeans, Hive reduced its 100% stake in Adore to 80% in the first quarter of last year, while CEO Min Hee-jin exercised a call option (the right to purchase shares at a predetermined price) to acquire an 18% stake in Adore for about 1.1 billion KRW. The remaining 2% stake is reportedly held by other Adore executives.
Earlier, in an interview with a magazine last year, CEO Min said, "People easily shout 'Hive capital,' but personally, I don't agree with that expression," adding, "The actual detailed label management strategy after the investment was decided and made is independent of Hive, and I had received similar investment proposals from companies of comparable size besides Hive at that time," which sparked rumors of discord with Hive.
She also said, "At that time, I had various options, and regardless of the investor, clauses for 'creative independence' and 'non-interference' would have been my top priorities, so there was no particular reason it had to be Hive."
Hive is reportedly planning to analyze the secured digital assets and, if necessary, take legal action based on the findings.
CEO Min Hee-jin joined SM Entertainment through an open recruitment in 2002 and worked there until 2018, overseeing concepts and branding for famous idol groups such as Girls' Generation, SHINee, and EXO, earning a reputation as a star producer with her unique color and expression in the music industry. She later moved to Hive, leading the branding and design of the Yongsan new headquarters space.
After establishing Adore as a label under Hive, she debuted the girl group NewJeans in 2022, releasing hit songs such as "Hype Boy," "Attention," "Ditto," and "OMG," winning various music awards and achieving No. 1 on the US Billboard main album chart, the Billboard 200.
Hive suspects that A and others are attempting to take control of management rights and pursue independent actions. Hive holds an 80% stake in Adore, while the remaining 20% is owned by CEO Min and Adore's management.
Meanwhile, NewJeans is preparing for a comeback next month.
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