HYBE’s decision to initiate a management audit of its subsidiary label ADOR has sent ripples through the K-pop industry, raising questions about the dynamics between the two entities and the future of their partnership. Since then, ADOR has addressed the label’s plans.
HYBE Initiates Management Audit on ADOR
Despite HYBE holding a controlling 80 percent stake in ADOR, recent developments have highlighted tensions between the label and its parent company. Reports surfaced on April 22 indicating that HYBE had detected efforts by ADOR to assert its independence, prompting concerns within the conglomerate. In response, HYBE took swift action, calling for a shareholders’ meeting to address the situation and hold the ADOR management accountable for their actions.
Founded in 2021 by industry veteran Min Hee Jin, ADOR quickly became synonymous with innovation and creativity, serving as the home for rising stars like NewJeans.
Central to HYBE’s concerns was the composition of ADOR’s leadership, with both current directors having joined the company alongside Min Hee Jin from SM Entertainment. In an effort to exert greater influence and oversight, HYBE sought to appoint an additional director from its own ranks, signaling a shift in power dynamics within the label.
Furthermore, reports circulated that HYBE had issued a document calling for Min Hee Jin’s resignation as CEO of ADOR, further complicating the situation and raising speculation about the future leadership of the label.
ADOR Responds to HYBE’s Plans
In response to these developments, ADOR issued a statement addressing the reports and affirming its commitment to transparency and cooperation with HYBE during the audit process.
“It appears that HYBE and BELIFT LAB along with Chairman Bang Si Hyuk think that simply driving CEO Min Hee Jin out of the company will end this issue without providing proper apologies or measures. However, ADOR will use all possible means and methods to protect the cultural achievements that NewJeans has worked for and to prevent further infringement due to copying. We want to make it clear that we cannot tolerate copying and various unfair actions continuing against ADOR and NewJeans,” it read.
The outcome of this audit and the subsequent actions taken by both parties will undoubtedly shape the future trajectory of ADOR and its relationship with HYBE, underscoring the complexities of navigating the competitive landscape of the K-pop industry.
