Hive "Use of undisclosed information... Request for investigation by Financial Supervisory Service"
An associate of Min Hee-jin, CEO of ADOR, was confirmed to have sold all of their HYBE shares one week before HYBE's audit. HYBE plans to file a complaint with the Financial Supervisory Service, viewing this as an unfair gain using undisclosed information.
Min Hee-jin, CEO of ADOR, is making a statement regarding the conflict with the parent company HYBE. Photo by Jin-hyung Kang aymsdream@
According to industry sources on the 14th, Deputy Director A, an associate of CEO Min, sold all 950 HYBE shares they held on the 15th of last month for 203.87 million KRW. This was one week before HYBE launched a sudden audit of ADOR on the 22nd of last month, amid allegations of a 'management rights takeover'.
The day after Deputy Director A sold the shares, on the 16th of last month, CEO Min's side sent a 'second email' raising various suspicions about HYBE to HYBE's management.
HYBE suspects that Deputy Director A sold the shares in advance anticipating that once the email, which CEO Min's side claims to be a 'whistleblowing', triggered a public opinion battle, HYBE's stock price would fall. In fact, as the conflict between HYBE and CEO Min's side became public, HYBE's stock price dropped significantly. Deputy Director A was able to avoid losses amounting to tens of millions of KRW by disposing of the shares last month.
Since Deputy Director A is an executive of ADOR, a subsidiary of HYBE, and thus an 'insider', HYBE plans to submit a complaint to the Financial Supervisory Service on the same day requesting an investigation into Deputy Director A for violations of the Capital Markets Act, including rumor-mongering and use of undisclosed information.
HYBE also plans to request an investigation by the Financial Supervisory Service into other ADOR executives, including CEO Min Hee-jin, on charges of spreading 'false information' from HYBE's perspective, such as plagiarism allegations, causing losses to investors.
CEO Min Hee-jin of ADOR has filed an injunction to prohibit the exercise of voting rights against HYBE, continuing the conflict between HYBE and CEO Min. The photo was taken on the 8th at HYBE headquarters in Yongsan-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
During the audit, HYBE reportedly secured KakaoTalk conversations indicating that CEO Min and others knew the stock price would fall, and plans to submit these as evidence.
CEO Min's side has completely denied these allegations. They argued, "The audit started suddenly; how could we have predicted it in advance?" calling it "an illogical argument." They further countered, "Isn't HYBE itself, which requested an extraordinary general meeting on the day the audit began to replace management, the one who foresaw the audit results?"
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