'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wgARCAAGAAoDASIAAhEBAxEB/8QAFgABAQEAAAAAAAAAAAAAAAAAAAYH/8QAFQEBAQAAAAAAAAAAAAAAAAAAAgP/2gAMAwEAAhADEAAAANXrSQ//xAAeEAEAAgICAwEAAAAAAAAAAAABAgMEBQAhEhNBYf/aAAgBAQABPwDdGVfsNV6TGspryCy6i4fGZJBevoCn7yc1nJe1ef/EABURAQEAAAAAAAAAAAAAAAAAAAEA/9oACAECAQE/AEv/xAAXEQADAQAAAAAAAAAAAAAAAAAAAQJB/9oACAEDAQE/AJeH/9k='%3E%3C/image%3E%3C/svg%3E)
On August 28, 2024, South Korean media outlet SPOTV reported that Min Hee-jin's lawyers issued a statement, alleging that the HYBE board of directors dismissed her against her will. On August 27, reports surfaced that Min Hee-jin resigned from her position as CEO of ADOR. The declaration was made amid a protracted dispute about business control between her and HYBE.
Reportedly, Kim Joo-young, ADOR's former Human Resource Officer, was appointed as the new CEO of the label while Min Hee-jin stayed as the creative director for NewJeans. On August 28, the latter's lawyers released a statement, claiming that she did not resign or step down from her position.
The former ADOR CEO also brought up concerns about the group's future direction by pointing out that she was not consulted about continuing to create material for NewJeans. She said,
Trending
"Currently, there are reports circulating the media Min Hee Jin is stepping down as CEO but will remain in her position as an in-house executive director and continue to be in charge of NewJeans. This is based on the information shared by the board of directors, which is a clear lie. CEO Min Hee Jin was dismissed against her own will, she did not resign."
HYBE's stocks surged upwards after the ADOR CEO's replacement
On Wednesday, August 28, 2024, HYBE's shares increased by around 5% because of the sudden departure of Min Hee-jin, and the appointment of Kim Joo-young as the new CEO of its sub-label ADOR.
Hybe's market value increased by almost 376.02 billion won ($282.05 million). This is the most recent development in the protracted management battle that has rocked the biggest agency in K-pop.
Notably, Top Daily reported on August 27 that HYBE and the former ADOR CEO's shareholders' agreement was terminated. According to the Financial Supervisory Service's electronic disclosure system, this meant that the criteria that assured her as the ADOR CEO and her compensation no longer existed.
In connection with the termination of the shareholders' agreement, the company also filed a confirmation lawsuit against her. The contract reportedly ended in July 2024. A put option (the ability to sell shares) and a term guarantee were the two major components of the shareholders' agreement between HYBE and her.
For the duration of the agreement, HYBE was required to use its voting privileges at the general shareholders' meeting of ADOR to guarantee that Min Hee-jin would continue to serve as the company's CEO and creative director until November 2026.
Meanwhile, she could sue HYBE for the unfair dismissal. However, HYBE already filed a declaration lawsuit in court, confirming the legality of her dismissal as the CEO of ADOR. Hence, she can no longer accuse HYBE of unfair practice, as the company already informed the court and held the shareholders' meeting to dismiss her abided by the law.
The controversy about the internal strife between HYBE and Min Hee-jin was further heightened when she declared her resignation as CEO to be "illegal" and "unilateral" despite the formal announcement. In the latest statement on August 28, by Min Hee-jin's lawyers, they said,
"The board of directors, which is composed of a large number of directors appointed by HYBE, decided to dismiss Min Hee Jin and even misled the public by distorting the fact that she was not dismissed, but resigned. We would like to state again, the decision to dismiss Min Hee Jin is a violation of the shareholder agreement and an illegal decision that is ignoring the court’s decision."
More about HYBE and Min Hee-jin's ongoing dispute
Min Hee-jin's battle with HYBE has been going on since April 2024, when the conglomerate accused her of illegal trading and attempting to take over ADOR's full control.
Notably, HYBE owns 80% shares of ADOR while 18% is owned by Min Hee-jin and the rest 2% was equally distributed amongst other executives. HYBE called for an emergency shareholders' meeting and asked her to step down from her position.
After a grueling court battle between both parties, she filed for an injunction against HYBE to prohibit it from using their voting rights and dismiss her as the CEO. The shareholders' meeting was on May 30, 2024, and as per court orders, HYBE could not use its majority shareholders' voting rights.
However, HYBE dismissed two executives of ADOR in the meeting, who were allegedly in a coup with Min Hee-jin, taking over ADOR and crashing HYBE's stock price in the market.
The parent company appointed a new Chief Financial Officer Lee Kyung-jun, Chief Human Resources Officer Kim Ju-young, and Chief Strategy Officer Lee Jae-sang. The three also serve as the board members of ADOR. Later, Chief Strategy Officer Lee Jae-sang succeeded Park Ji-won as HYBE Corporation's new CEO in July 2024, while Kim Ju-young became the new ADOR CEO on August 27, 2024.
It is important to note that Min Hee-jin attended the shareholders' meeting via a video conference call on August 27, 2024, when she was dismissed from the position of ADOR's CEO, according to a report by Star News.
