Former ADOR CEO Min Hee-jin (left)
HYBE Co. has finally removed Min Hee-jin from ADOR, a label behind girl group NewJeans, as chief executive officer about four months after it failed to kick her out, but Min again vowed to fight back, accusing the decision of a violation of a shareholders’ contract.
South Korea’s multi-label music powerhouse behind global sensation boy band BTS announced on Tuesday that ADOR’s board of directors appointed HYBE’s chief human resources officer Kim Ju-young as the new CEO of ADOR.
Kim joined ADOR’s board in May with two other HYBE officials, replacing two former ADOR executives known as Min’s confidants after HYBE failed to sack Min who won a court’s ruling that banned the company from firing Min as ADOR CEO.
Since then, Min had stayed at ADOR as CEO but ADOR’s board of directors was composed of her and three HYBE officials.
Following today’s decision, Min was immediately dismissed from ADOR’s CEO position, but she will remain in the board as an insider director and continue to produce music for NewJeans, HYBE explained.
MIN WILL FIGHT BACK
But Min accused the removal of violating a shareholders’ contract, which is supposed to allow Min to serve as ADOR CEO and director until November 2026 and to request HYBE to buy back her 75% stake in ADOR.
“The decision was made without consultation with former CEO Min,” Min’s legal representative said in a statement on the same day after the news was out. “We will come up with our official position on this after discussion.”
NewJeans (Courtesy of ADOR)
According to HYBE’s bi-annual report on earnings filed on Aug. 19, the entertainment giant has, however, revoked the ADOR shareholders’ contract with Min.
The filing said that it has filed a lawsuit to repeal the contract, a move paving the way for HYBE’s move to fire Min as ADOR CEO.
ADOR said Min’s removal was necessary considering that HYBE keeps separating management from production at each label. HYBE controls multiple music labels, including ADOR and Big Hit behind BTS.
Min, however, took the grip on ADOR’s management while producing for its artist NewJeans as an exception, HYBE said, adding that that is no longer acceptable.
MONTHS-LONG BATTLE OVER ADOR MANAGEMENT
In April, HYBE announced a plan to fire Min after accusing Min of breach of trust, saying that she attempted a coup to take over ADOR with outside investors.
But Min immediately denied the allegation and condemned HYBE’s move as a retaliation against her whistleblowing on ADOR’s sister label Belift for copying NewJeans’ identity, styling, choreography and music video concept in producing its new girl group ILLIT, which debuted on March 25.
Min filed for an injunction in May to prevent HYBE from exercising its voting rights at a shareholders’ meeting to sack her, and the Seoul Central District Court ruled in favor of Min later in the month, granting her injunction.
By Ji-Eun Ha
hazzys@hankyung.com
Sookyung Seo edited this article.
