On April 26, HYBE issued an official assertion addressing ADOR Min Hee Jin‘s press convention held on the day prior. The following is the total translation of HYBE’s assertion.
“Hello.
HYBE wish to state the next.
We wish to clarify the entire fact relating to the statements made by ADOR CEO Min Hee Jin at her press convention on April 25 in an effort to shield our shareholder worth and IP.
1. Regarding the declare that administration takeover was a joke and simply a part of a non-public dialog:
There are information of discussions which have gone on for months associated to the takeover in transcripts and work journals. When non-public conversations on the identical subject happen over a protracted time frame and accompanied by a third-party desiring to intervene, it’s now not merely a non-public dialog however planning and implementation of mentioned plan.
Moreover, the vice-president who CEO Min was speaking to is a licensed public accountant with specialised data of company operations. They are an individual who has been concerned with HYBE being listed on the inventory alternate and quite a few M&As. In addition, they’re a key govt of ADOR, being within the place to have the ability to entry the entire firm’s monetary data. The vice-president additionally wrote of their work journal that CEO Min’s remarks have been to ‘finally escape.’
You may by no means say that it’s all only a joke. We can’t ignore the invention of paperwork referring to concepts reminiscent of calculating the sum of money they might earn from put choices, specifying the timing of their deliberate actions, making ready a lawsuit for infringement of rights, mentioning outdoors funding corporations, and beginning media play campaigns as only a joke. There is even a written document of the vice-president stating that what they mentioned ought to ‘be handled as a non-public dialog.’
2. Regarding the declare that the monetary compensation was small:
CEO Min claimed a wage of ₩2.00 billion KRW (about $1.46 million USD). More exactly, this features a ₩2.00 billion KRW (about $1.46 million USD) incentive for the efficiency in 2023, separate from the wage and long-term incentives. This ranks first amongst all staff of HYBE headquarters and its subsidiaries in Korea.
HYBE has additionally offered vital inventory compensation, the worth of which is unimaginable to most of the people. Yet, CEO Min led negotiations to an deadlock with calls for for quantities the corporate couldn’t settle for. We view this as constructing a case for impartial administration.
3. Regarding the declare that an audit occurred instantly with out a response to the whistleblowing electronic mail:
Our firm despatched an in depth six-page response at 10:01 AM on April twenty second, which CEO Min learn round 12:00 PM on the identical day. However, CEO Min repeatedly claimed within the place assertion and on the press convention that ‘no reply was acquired.’
The audit was performed after a number of months of detecting makes an attempt to take over administration and confirming the leakage of delicate enterprise paperwork. It is nonsensical to demand notification of an audit schedule for such a critical misconduct case.
4. Regarding the declare that there was no steering on returning property containing firm data:
HYBE workers visited CEO Min’s work studio and her residence at 10am KST on April 22 to retrieve firm property as a part of the audit course of. During this course of, we contacted her a number of occasions via e-mail, cell phone, and landline, however CEO Min didn’t reply.
At 6pm KST on April 23, when the deadline imposed for the return of firm property expired, we as soon as once more requested the return of firm property and belongings via ADOR’s vice-president Shin. Vice-president Shin said, “CEO Min is busy and thus can’t [return the property].” We came upon about her place on returning firm property via the media with none discover. It is irresponsible and unfaithful to conclude that what occurred was simply media play.
It can be a false declare that we took away her pc to stop her from working forward of [NewJeans‘] comeback. As quickly as we acquired it, we offered a brand new laptop computer, and current supplies that have been on the previous laptop computer have been additionally downloaded on the brand new one so that there have been no points with work. Other people who have been audited are additionally working with new units now.
5. Regarding the declare that we promised for her group to debut as the primary woman group:
This is a part of our response to her intimately, via an electronic mail on April 22, 2024. We assume that the explanation CEO Min claimed she by no means acquired an electronic mail from us is as a result of she can’t make such untruthful and unfaithful claims, if she admits that she noticed our response. This is the detailed response we despatched her.
‘CEO Min, you make a false declare that’s primarily based by yourself distinctive and unsuitable interpretation of the method of the way you separated from Source Music. The purpose why NewJeans couldn’t change into the primary woman group from HYBE was not as a result of HYBE didn’t maintain our promise. At that time limit, you requested to have the ability to have all of the tasks in creating the group, and also you strongly insisted that you’d debut them below your individual separate label. HYBE revered your opinion, so regardless that Source Music opposed this, we transferred the members to ADOR, and gave you an enormous quantity of ₩16.0 billion KRW (about $11.7 million USD) in assist so far, permitting you to debut NewJeans in the best way that you just wished. In this course of, due to contract transfers and creating the separate label, NewJeans’ debut was delayed, in no relation to HYBE’s intentions.
What’s extra is that this course of has additionally been admitted to by your self. In your interview with one outlet on March 24, 2022, you claimed that you just your self oversaw the planning of the woman group challenge, and that you just deliberate the launch within the third quarter of 2022. You talked about “The younger members would naturally really feel the burden of a rushed debut. I didn’t need to make everybody really feel rushed, so I made a decision to launch the group within the third quarter of 2022, as it’s a affordable time.”‘
6. Regarding the declare that we requested Min Hee Jin to not promote NewJeans through the time of debut:
Due to the R&R concern between Source Music and your self, NewJeans’ debut was delayed, and LE SSERAFIM, which Source Music was planning, ended up debuting first. The two teams had consecutive debuts, and there was not sufficient time to sufficiently promote each of them, so we selected set durations for his or her schedules and promotions. In the case of LE SSERAFIM member Sakura, there have been many articles about her switch to HYBE since earlier than she even signed with us.
In this example, there was a case the place we have been apprehensive that data can be leaked concerning the member composition for NewJeans, if we are saying that ADOR’s debut staff is barely made up of rookies, as a result of folks already knew that Sakura joined Source Music. In order to guard the information worth of each teams, we made that request of you, and we additionally shortened our set interval of promotion [for LE SSERAFIM] in order that we may begin selling NewJeans.
Regarding this, we now have already despatched her the next in an electronic mail.
‘In addition, you had an interview two months earlier than LE SSERAFIM’s debut (May 22, 2022), so that you already had ample time to advertise your new group; you can have recognized to advertise them then.
In disagreement together with your claims, the workers know very effectively simply how a lot Source Music and HYBE actively supported and gave in to ADOR.’
7. Regarding the declare about neglecting solely NewJeans’ promotions:
She talked about this throughout her inner criticism as effectively, and this was our detailed reply to her in electronic mail.
‘HYBE’s Communication Department is doing their finest for NewJeans’ PR. In the previous 12 months, they’ve written and unfold 273 press releases only for NewJeans. For BTS’s group and particular person promotions (complete of 8 items), BIGHIT MUSIC’s articles complete to 659 items. SEVENTEEN promoted 4 totally different items, and Pledis’ articles complete 365 items. Comparatively, it’s exhausting to say that NewJeans’ PR has been uncared for. The firm is doing our greatest to unfold the phrase about all our labels and artists with none discrimination.’
8. Regarding the declare of a slave contract:
Although there may be an obligation within the settlement to maintain the non-competition clause confidential, CEO Min talked about it on the press convention. This clause is required to stop unfair competitors by the vendor promoting shares and founding an identical enterprise in the identical business. These clauses are widespread in any business.
The assertion that they’re sure indefinitely are additionally unfaithful. CEO Min can promote her shares beginning in November, and if she sells, she is not going to be topic to ban on competitors from November 2026, when her contract expires.
The situations, which even permit cashing out and beginning a brand new enterprise in two years, are removed from what could possibly be thought of a ‘slave contract,’ as CEO Min herself expressed confidence in incomes a big quantity, stating that she may make ₩100 billion KRW (about $73.0 million USD) with out doing something. These are unprecedented and beneficiant compensation phrases that abnormal people may hardly think about.
Furthermore, in KakaoTalk conversations between CEO Min and her associates, there’s a point out of exercising inventory choices to exit on January 2, 2025.
Regarding the interpretation of the clauses associated to the sale within the contract, there was a distinction within the precedence of the 2 clauses, and the response despatched in December final 12 months already said, ‘If the interpretation is ambiguous, resolve the ambiguous clause in order that it doesn’t change into an issue.’ While CEO Min claimed to have little interest in cash, the central concern that triggered the dialogue was the size of compensation.
9. Regarding the argument to implement ESG administration:
We are actively practising ESG administration actions inside our capability. Regarding the eco-friendly albums diligently pursued by the corporate, CEO Min disparagingly remarked, ‘Melting photocards are a joke.’ Converting the plastic materials of digital albums into paper, in addition to transitioning album instances and photocards into environmentally pleasant biodegradable supplies, required vital manpower and prices for the corporate.
Embracing and investing in these adjustments willingly signify ESG administration. While we’re pushing for the expanded utility of eco-friendly albums throughout all labels below the HYBE umbrella, inner members are effectively conscious that ADOR is essentially the most uncooperative label.
10. Regarding the claims that there have been no makes an attempt to speak:
HYBE has constantly been in discussions with CEO Min relating to modifying the shareholder settlement, however the discussions have been suspended when HYBE acquired an inquiry that CEO Min was a whistleblower. Nevertheless, HYBE faithfully responded to the inquiry’s claims that CEO Min was a whistleblower.
However, as an alternative, CEO Min colluded with legal professionals and accountants which are HYBE staff behind the corporate’s again and consulted with them on modify the shareholder settlement and lift points within the type of whistleblowing. The audit confirmed that she was involved with legislation corporations and outdoors traders to debate the takeover of administration rights.
11. Regarding the declare that the shaman is just a buddy:
It will not be possible to think about an exterior particular person who intricately entails themselves in administration as merely a buddy.
There has been an alternate of undisclosed details about govt inventory choices, potential investor names, and shareholder percentages inside a administration takeover construction primarily based on the shaman’s ideas. Such a relationship can’t be seen as merely pleasant when it entails disclosing essential firm data to an outsider and influencing decision-making, together with receiving requests for job placements.
The firm views these actions very significantly.
12. Regarding the declare that HYBE doesn’t care about NewJeans…why throughout comeback time:
CEO Min’s facet initiated attacking the corporate through electronic mail across the time of NewJeans’ comeback. Records obtained via forensics comprise directions from CEO Min since April to organize for a publicity marketing campaign and information indicating efforts to create noise to harass the corporate. We, in flip, wish to ask whether or not or not she thought that placing strain on the corporate right now would make us settle for her request, which is unreasonable at this level.
In truth, it’s CEO Min who’s threatening the corporate by holding the artist hostage. If the compensation plan is accepted, it’s good, but when it’s not accepted, she’d attempt to use it as an excuse to finish the connection.
While the corporate has accommodated and compromised with CEO Min’s recurring calls for for years, this time, it has come to comprehend that these calls for are a part of a so-called ‘build-up’ course of for a takeover of administration rights. Regardless of timing, in an effort to protect the worth of the multi-label, we had no alternative however to provoke an audit. Furthermore, we repeatedly requested to not point out artists in press conferences and interviews, because it confirmed that she didn’t worth the artists.”
— HYBE
Stay tuned for additional updates.
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Source: www.koreaboo.com