Hive Secures Evidence of Plan to Seize Control of Adore... Filed Today on Charges of Breach of Trust

Announcement of Interim Audit Results on Attempted Takeover of ADORE Management Rights

HYBE announced the interim audit results regarding the attempted takeover of management rights of its subsidiary ADORE on the 25th.

A group chat among three executives of ADOR on April 4, 2024. CEO Min Hee-jin is responding to the plans of the Vice President.
[Photo by HYBE]

According to the audit results released that day, HYBE secured concrete evidence and proof confirming the establishment of a plan to seize management rights led by the CEO of ADORE.

One of the audit subjects submitted information assets containing plans for the takeover of management rights and contacts with external investors as evidence during the investigation process, and also admitted to preparing documents aimed at attacking HYBE.

According to face-to-face investigations and conversation logs within the submitted information assets, the CEO of ADORE instructed the management to devise ways to pressure HYBE into selling the ADORE shares it holds.

In accordance with this instruction, specific methods such as prematurely terminating exclusive contracts with artists and invalidating contracts between the ADORE CEO and HYBE were discussed. Additionally, conversations included remarks like "Let's bring in global funds and make a deal with HYBE," "Critically appeal against everything HYBE does," and "Think of ways to harass HYBE."

Hive is initiating an audit of the management of Adore, a subsidiary to which the group NewJeans belongs, leading to conflicts. The photo shows the Hive headquarters in Yongsan. Photo by Jo Yongjun jun21@

The conversation logs also contained execution plans such as "Prepare a public opinion campaign in May" and "Turn ADORE into an empty shell and take it out."

HYBE also secured a statement from the audit subject that the phrase "Ultimately, we will get out of HYBE" was a note taken from what the ADORE CEO said.

Based on these materials, HYBE plans to file a complaint on the 25th against the related parties on charges including breach of trust in the course of business.

HYBE stated, "We plan to do our best to support psychological and emotional care for the NewJeans members and their successful comeback. We also plan to meet with the members' legal representatives promptly to discuss ways to protect the members."

Park Ji-won, CEO of HYBE, said, "We apologize to fans, artists, and all members for the concerns caused by incidents that occurred during the process of advancing the multi-label system," and added, "Now that the incident has been settled, we will do our utmost to provide psychological healing and emotional stability for the artists, who are valuable assets of K-pop."