In the latest update on the case, it was reported on May 2, 2024 by South Korean media that ADOR’s CEO Min Hee Jin had requested for the rights to be able to terminate NewJeans’ contract with the company in early 2024. It was further elaborated that she did not go through the typical means of a director’s meeting, but had simply put forth the request individually as the CEO.
According to insiders from the industry, she sent an edited version of her shareholders’ contract to HYBE in February 2024, with the above contents. This had allegedly come after HYBE and Min’s tug-of-war about her putback options and stocks. Min Hee Jin had requested for an increase in the multiplier for the putback options from 13 to 30 times, and also requested the putback options to be applicable to her added 5% stake in the company. While she previously had 15% stake in ADOR, HYBE had rewarded her with 5% more after NewJeans’ success.
Early in the year, HYBE had told her that the request to have the rights to terminate NewJeans’ contract with the company was too much. If they had given her the rights, she would be able to terminate the girls’ contract with ADOR without needing to bypass HYBE’s management.
As such, it would make it easier for her to take the girls out of the company and move them to another one. According to media reports, HYBE inferred from the audit results that Min Hee Jin’s overall plan was to exercise the put options in January 2025 to make an exit, turning ADOR into an empty shell. When ADOR becomes non-profitable, she would use her external funding to ask HYBE to sell the label to her, purchasing it at a reasonable price, then with the money she had cashed out as ADOR’s CEO, she would purchase the remaining shares to the label.
On the other hand, Min Hee Jin has since rejected HYBE’s claims, claiming that she has never had plans to gain management rights over the company.
It seems like the battle between HYBE and Min Hee Jin will be a long drawn one. HYBE is gearing up for an emergency shareholder’s meeting to call for Min’s dismissal. The process could take up to two months.
Source: Kukmin Ilbo
