Min Representative's Injunction Hearing to Prohibit Exercise of Voting Rights on Jeigi
Bang Chairman's Petition: "So That Malpractices Do Not Destroy Social Order..."
"The Personal Malice of One Individual"
Bang Si-hyuk, Chairman of the HYBE Board of Directors (left), Min Hee-jin, CEO of ADOR (right). [Photo by HYBE, ADOR]
As Min Hee-jin, CEO of ADOR, and its parent company HYBE begin legal battles, HYBE Chairman Bang Si-hyuk has made his first statement regarding the situation.
On the 17th, during the hearing for the injunction to prohibit the exercise of voting rights held at the Seoul Central District Court Civil Division 50 (Presiding Judge Kim Sang-hoon), both sides engaged in sharp exchanges.
On this day, HYBE's legal representative disclosed part of Chairman Bang Si-hyuk's petition.
In the petition, Chairman Bang stated, "Despite the current situation, creators should be able to create more freely than ever before. This is not just a personal dream of mine as a creator. I believe the only way for K-pop to become a sustainable industry is for more creators to produce better works. That has been the driving force behind K-pop's relentless growth over time."
He continued, "I understand that some see Min Hee-jin's actions as revealing problems with multi-label systems. However, no matter how sophisticated a system is, it cannot prevent malice. Actions driven by the malice of one individual should never damage a system built by many people over a long time. The strength of social systems lies in preventing wrongdoing from disrupting social order," he emphasized.
Regarding the current situation, he also said, "I view this from a solemn and urgent perspective of establishing better creative environments and systems, as well as setting proper rules and precedents for the entire K-pop industry."
Furthermore, Chairman Bang stated, "As an industry leader, I hold firm beliefs and am working to correct the situation. I sincerely apologize for causing concern to our members and the public in the entertainment industry, which is supposed to bring joy. I hope this sincerity will be recognized and that the court will make a wise decision to dismiss the injunction."
He added, "As an entertainment company that should deliver joy, I deeply regret causing concern to various members of our society and the public due to this incident. I sincerely hope this sincerity is conveyed and that the court will make a wise judgment to dismiss this injunction application."
During the hearing, Min Hee-jin's side and HYBE engaged in fierce disputes based on the shareholders' agreement between the two parties. Previously, Min's side had emphasized that the contract was problematic and was in the process of renegotiation, referring to it as a 'slave contract.'
They further argued, "There are additions concerning exclusive artist contracts and major service contracts," and "Based on the intent, this is directly linked to ADOR's operating profit, and they are framing it as if HYBE demanded the right to terminate NewJeans based on this."
In response, HYBE's legal representative countered, "The essence of the case is whether it is justifiable to preemptively restrain the exercise of voting rights, which are core shareholder rights, through an injunction, and whether it is appropriate for CEO Min, who has committed breaches of duty and illegal acts, to continue serving as ADOR's CEO. The injunction application should be dismissed."
They also explained, "The shareholders' agreement states that Min can be asked to resign if she causes damage exceeding 1 billion KRW to ADOR or commits illegal acts such as breach of trust or embezzlement," adding, "As long as there are grounds for dismissal, there is no contractual obligation to maintain the CEO position."
ADOR, a label under HYBE and the agency of the group NewJeans, will hold an extraordinary general meeting on the 31st to propose the agenda of 'dismissal and new appointment of directors,' including the dismissal of CEO Min.
HYBE is pushing to replace the current ADOR management, including CEO Min, based on allegations of 'management rights takeover.' Currently, HYBE holds 80% of ADOR's shares, so if the injunction is dismissed, CEO Min's dismissal is expected to be confirmed.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
