Min Hee-jin: "The 30x Put Option Demand Reflects Inclusion of Boy Group Production"

Detailed Rebuttal to HYBE's Explanation
Adore Vice President's Coercion and Pressure: "Sign the Information Provision Consent Form to Exclude the Accused"
"Will Fully Support NewJeans Activities... Stop Slander and Support Creativity"

As HYBE issues a clarification regarding the press conference held by Min Hee-jin, CEO of its subsidiary ADOR, ADOR on the 2nd strongly refuted the ongoing controversy, stating that the "hostile takeover claim is baseless and groundless."

Min Hee-jin, CEO of ADOR, is making a statement on the 25th at the Korea Conference Center in Seocho-gu, Seoul, regarding the conflict with the parent company HYBE. Earlier, HYBE announced the results of an interim audit on ADOR's management, including CEO Min Hee-jin, and stated that they would file charges against them for breach of duty and other allegations. Photo by Kang Jin-hyung aymsdream@

In a lengthy statement on the 2nd, ADOR said, "Even after HYBE's rebuttal, ADOR did not take any action in order not to interfere with NewJeans' activities and to protect its value. However, as unverified issues continued to cause public confusion, ADOR would like to clarify the exact facts regarding the current controversy," expressing this stance.

In the statement, ADOR systematically refuted HYBE's claims regarding ▲ the hostile takeover suspicion ▲ internal whistleblowing and audit process ▲ HYBE's promise to debut ADOR's first girl group ▲ the allegation that HYBE told them not to promote NewJeans at debut ▲ the claim that it was not a slave contract ▲ controversies related to shareholder agreements ▲ and the controversy involving a shaman acquaintance.

First, regarding HYBE's claim of CEO Min's "hostile takeover," ADOR drew a clear line, calling it a "baseless and groundless claim." They emphasized, "The documents HYBE presented as evidence were not intended for a hostile takeover but were products of ongoing conflicts with HYBE and imagination. We clearly state once again that there was no concrete plan or execution related to this."

In particular, ADOR pointed out that Vice President A, who drafted the document in question, was excluded from the accused, stating, "HYBE management tried to coerce cooperation by saying things like, 'If you get sued, how will you handle the damages if you, as the person in charge, are scapegoated?' and 'Think about your family.'"

They also added, "Vice President A was psychologically pressured into signing the consent form for providing information," and "The next day, the vice president's KakaoTalk messages were leaked to the media. This is a serious invasion of personal privacy and a violation of human rights."

Regarding HYBE's interim audit results announcement, ADOR criticized, "What kind of listed company publicly broadcasts audit details that should be conducted confidentially, editing unverified content and reporting it as if it were a live broadcast?"

ADOR also expressed its position on shareholder agreements and financial compensation.

ADOR stated, "We do not deny the necessity of the non-compete clause itself," but emphasized, "The scope and duration of the non-compete business must be reasonable, but the current shareholder agreement is not."

[Image source=Yonhap News]

Previously, HYBE said, "There was a difference in interpretation regarding the sale-related clause in the contract, and they responded that they would clarify the ambiguous clause."

However, ADOR pointed out, "That content is not ambiguous to any legal expert. CEO Min has a continuing non-compete obligation until all shares are disposed of with HYBE's consent. It was only in mid-March this year that a modification proposal was received."

Additionally, ADOR explained that the claim of a "30 times multiple" in exercising the put option was "a reflection of the future value of boy group production" and "was just one of the proposals during the process of changing the shareholder agreement, which had several unreasonable elements, and was not a priority item in negotiations."

CEO Min's side elaborated that HYBE promised an additional 10% stake in ADOR as stock options last March, but legal advice concluded that it was impossible to grant them to CEO Min, a major shareholder under the Commercial Act. The stock options were neither requested by CEO Min nor proposed by her, so she cannot dismiss the judgment that HYBE deceived her, leading to a breakdown of trust.

Based on this, ADOR stated, "HYBE proposed that the non-compete obligation be maintained for eight years of mandatory employment and one year after retirement, with the put option exercised in stages accordingly. During the negotiations, the controversy related to Aileit occurred, leading to the current situation. CEO Min has never conveyed any position regarding HYBE's proposal, so it is not true that she expressed rejection."

Regarding HYBE's claim that CEO Min engaged in shamanistic management, ADOR responded, "It is pathetic that HYBE, which should lead K-pop, not only attempted to frame a personal defamation unrelated to the issue but also announced it right before CEO Min's press conference." Earlier, CEO Min explained that the shaman she communicated with was an acquaintance.

ADOR criticized HYBE for causing a series of incidents ahead of NewJeans' comeback, saying, "If they judged that bringing an issue that could have been quietly resolved internally to the outside and attacking CEO Min and ADOR would not affect NewJeans' brand value, this is a completely ignorant idea that does not understand label management and is a sophistry to cover up their managerial mistakes."

ADOR appealed, saying, "We will devote all our efforts to supporting NewJeans' activities," and urged, "HYBE should stop the unconvincing smear campaign and show a reasonable attitude by supporting ADOR to fully concentrate on creation."