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Min Hee Jin Continues to Push for Reappointment as ADOR CEO

Min Hee Jin has issued a statement in response to ADOR’s latest announcement regarding her position within the company. Min’s latest statement continues to push for her reappointment as the company’s CEO.

Min Hee Jin Pushes for Reappointment as ADOR CEO

On September 25, Min’s legal representation issued the statement.

“Min Hee Jin is wary that extending her term under a flawed contract would not guarantee the normal activities of NewJeans as artists. Therefore, she has clearly expressed her intention to return as CEO and has requested a concrete contract from HYBE that reflects their sincerity. She feels great anger at the repeated media play before any negotiations, with no agreed-upon details regarding the parties involved, the duration, or the authority,” the statement read.

This comes after ADOR revealed they would be holding an extraordinary general meeting to discuss Min’s reappointment as an internal director.

On the morning of September 25, reporter Jang Hyung Woo discussed a phone call with a HYBE PR representative during a radio news interview. The reporter alleged that the representative downplayed the achievements of NewJeans, the successful girl group produced by Min Hee Jin under ADOR. HYBE quickly refuted these claims, issuing a statement denying the remarks attributed to their PR team, adding another layer of complexity to the ongoing situation.

This follows the significant developments in August when ADOR announced that Min Hee Jin would no longer serve as CEO, though she would remain as an internal director responsible for producing NewJeans’ content. In response, on September 11, all five members of NewJeans held a live YouTube broadcast, where they issued an ultimatum to HYBE, demanding the reinstatement of Min Hee Jin as CEO by September 25. On September 13, Min Hee Jin filed an injunction seeking her reappointment as both inside director and CEO of ADOR, escalating the situation.

Fans are watching closely as this story unfolds, awaiting further developments.

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HYBE Addresses Min Hee Jin Injunction Request for Reinstatement

It looks like Min Hee Jin is keen to continue as the CEO of ADOR. Now, HYBE has responded to her injunction request for reinstatement to her former position.

HYBE Responds to Min Hee Jin Injunction Request

On September 13, HYBE issued an official statement in response to former ADOR CEO Min Hee Jin’s legal filing for an injunction, in which she seeks reappointment as both CEO and inside director of the company. This move follows her dismissal from the CEO role, a decision made by ADOR’s board of directors on August 27. Min Hee Jin’s filing has intensified the situation, bringing attention to the underlying legal and managerial disputes between HYBE, ADOR, and Min Hee Jin.

HYBE clarified its stance by explaining that the shareholder agreement between HYBE and Min Hee Jin, which initially governed her role as CEO, had already been terminated. The agency emphasized that, “Once the agreement is terminated, its legal effect is void.” HYBE further disclosed that a lawsuit had already been filed to confirm the termination of this shareholder agreement, and they are currently awaiting the court’s decision on the matter.

In addition to the legal clarification, HYBE asserted that Min Hee Jin’s dismissal as CEO was the result of a decision made independently by ADOR’s board of directors. The agency emphasized that the decision had no connection to HYBE or the previously terminated shareholder agreement. The agency noted that ADOR’s board of directors acted solely out of business management considerations, not influenced by external factors.

HYBE expressed disappointment over Min Hee Jin’s recent actions, stating, “We regret that Min Hee Jin, who has long emphasized the importance of ADOR’s independent management as a separate entity, is not respecting ADOR’s board of directors’ decision.” This statement reflects HYBE’s stance that Min Hee Jin, who previously championed the autonomy and distinct identity of ADOR, is now opposing the very independent decision-making processes she once advocated.

NewJeans Fights for Min Hee Jin

Earlier on the same day, Min Hee Jin’s legal team filed an injunction to challenge her dismissal. Her team argues that the shareholder agreement, which guaranteed her a five-year term as CEO and inside director, is still legally valid and has not been lawfully terminated. They claim that the dismissal was a violation of this agreement and are seeking legal recourse to have Min Hee Jin reinstated in both roles.

The controversy surrounding Min Hee Jin’s departure escalated when ADOR first announced on August 27 that she would no longer serve as CEO. However, it was noted at the time that Min Hee Jin would continue her involvement with NewJeans by producing their content as an internal director at ADOR. Despite this, the shift in leadership has caused tension, particularly with fans and the members of NewJeans.

In a surprising turn, the five members of NewJeans held a live broadcast on YouTube on September 11, where they expressed their dissatisfaction with Min Hee Jin’s removal as CEO. The group firmly requested that she be reinstated by September 25, underscoring her importance to their artistic and professional development.

As the legal battle unfolds, all eyes are on how the court will rule on the shareholder agreement and whether Min Hee Jin will regain her former leadership role within ADOR. The situation has not only legal implications but could also impact the creative direction of NewJeans and the future of ADOR’s independent management.

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Weverse, YG Plus, SM, and JYP Refund Violation Accusations

The Korea Fair Trade Commission sanctions major K-pop companies for illegal refund practices

The Korea Fair Trade Commission (KFTC) has taken action against several major companies in the K-pop industry. This includes Weverse Company, YG Plus, SM Brand Marketing, and JYP 360. These companies, which handle the online sales of idol merchandise, faced sanctions for illegal refund practices that unfairly targeted consumers, particularly teenagers.

The KFTC discovered that these companies have been shortening the legally mandated refund period. Under current e-commerce law, customers are entitled to withdraw from a purchase within three months or within 30 days of discovering a defect. However, Weverse Company and others informed customers that even defective products could only be refunded within seven days. Additionally, they imposed unreasonable restrictions, such as requiring video evidence of the unboxing process to qualify for refunds.

This behavior, known in Korea as “gapjil” (abuse of power), effectively shifted the burden of proof onto the consumers, violating e-commerce laws. These practices not only limited customers’ rights but also exploited the loyalty of teenage fans, who are less aware of their legal protections.

   

The idol merchandise shops of the four biggest K-Pop agencies, Weverse, YG Plus, JYP 360, and SM Brand Marketing, have been sanctioned by Korea’s Fair Trade Commission. Photos via Wikimedia Commons.

In response, the KFTC issued corrective orders and imposed fines totalling 10.5 million KRW (approximately 7,740 USD) on the companies involved. Weverse Company was fined approximately 3 million KRW (2,210 USD), while YG Plus, SM Brand Marketing, and JYP 360 each received fines of 2.5 million KRW (1,840 USD). The fines were reduced as the companies voluntarily corrected their practices following the investigation.

A KFTC representative emphasized protecting teenage consumers in the entertainment industry and stated that the commission would continue to monitor for similar violations. They warned that stricter penalties, including business suspensions, could follow if such practices persist.

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HYBE and Other Three Big Agencies’ Online Stores Fined By Fair Trade Commission

The Fair Trade Commission (FTC) fined South Korea’s four largest K-pop entertainment companies—HYBE, SM, YG, and JYP—for violating e-commerce consumer protection laws. On August 11 KST, the FTC imposed a total fine of 10.5 million KRW (approximately $7,700 USD) on these agencies and issued corrective orders to ensure they comply with the ‘Electronic Commerce Act’.

The FTC penalizes the Big 4 K-pop agencies for violating consumer protection laws in their online stores

Fair Trade Commission found that these companies set excessively strict and unfair conditions for refunds on idol-related merchandise, including albums and official goods. The FTC highlighted practices like shortening the legally mandated refund period and requiring unreasonable documentation, such as filming product unboxings to qualify for refunds when items were missing.

Weverse Company, associated with HYBE, received a fine of 3 million KRW. SM Brand Marketing (SM), YG Plus (YG), and JYP Three Sixty (JYP) were each fined 2.5 million KRW.

Among the violations, SM’s policy required customers to return products due to a change of mind within seven business days of delivery, which goes against the law, allowing customers seven days from the receipt date to decide on a return. SM and JYP also broke the law by demanding that customers submit claims for defective or incorrect items within seven days of delivery, while the law permits returns within three months from receipt or 30 days from discovering the defect.

The companies also denied compensation for lost items after a specified period, restricted returns if packaging was opened or damaged, and demanded video proof of unboxing for claims of missing items. These actions placed an undue burden on consumers, violating legal protections that should favor the buyer.

Korea’s Big 4 K-Pop Agencies face fines ordered by the Fair Trade Commission. The 4 agencies have revised policed to comply with FTC’s terms. Photos via Wikimedia Commons.

Moreover, in response to the FTC’s findings, all four companies corrected their policies voluntarily, which led to reduced fines. However, the FTC’s actions serve as a reminder of the importance of fair consumer practices in the e-commerce space, especially within the influential K-pop industry.

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Fair Trade Commission to Investigate HYBE Further

The Fair Trade Commission (FTC) will further investigate HYBE despite the company’s claim that the omission of designated data was unintentional. This follows a correction report filed by HYBE, which described the omission as a “simple mistake.” The FTC’s investigation, if it uncovers intentionality and significant omission of data, could lead to criminal charges against HYBE Chairman Bang Si-hyuk.

The probe continues despite HYBE’s claims of a “simple omission” in data disclosure

On July 2, HYBE filed a correction report with the Financial Supervisory Service’s Electronic Disclosure System (DART). The report addressed the status of overseas affiliates in which the CEO’s family holds shares, citing a “simple omission.” HYBE disclosed ‘BEL AIR STRADELLA, LLC,’ a U.S. real estate company owned entirely by Bang Si-hyuk. Reports indicate that Bang Si-hyuk purchased a luxury mansion worth approximately 36.5 billion won (26.4 million dollars) through this company.

HYBE explained, “With the designation of large corporate groups subject to disclosure, the corporation also has an obligation to disclose. In practice, there was a simple omission, so we made a corrective disclosure.”

The FTC conducted an on-site investigation into HYBE on June 24, suspecting data omission for large corporations. Despite HYBE’s voluntary correction, the FTC plans to continue its investigation. An FTC official stated, “We plan to continuously uncover whether this was a simple omission, as HYBE claims, or a deliberate concealment.”

If the investigation reveals that HYBE omitted additional affiliates, excluding their assets from calculations, it could mean avoidance of corporate group designation and engagement in unfair practices. Significant omissions could result in punishment.

HYBE’s voluntary correction came over two months late, beyond the 10-day window for such actions. A retroactive application is unlikely, as the enforcement decree takes effect on the 7th of next month. According to the Monopoly Regulation and Fair Trade Act, large corporate groups can face criminal charges for omissions or errors in data related to disclosure obligations. The FTC will review the missing data and HYBE’s explanations in their ongoing investigation.

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ADOR Address CEO Min Hee Jin Covering Up Workplace Sexual Harassment Allegations

ADOR has responded to allegations that CEO Min Hee Jin covered up a workplace sexual harassment incident. These accusations emerged after leaked KakaoTalk messages became public. On July 29, a legal representative from Shin & Kim Law Firm, speaking on behalf of ADOR, directly addressed the situation, emphasizing that the case had already been resolved.

The company defends Min Hee Jin against claims of covering up a harassment case, citing a previous no-charges decision

The representative stated, “The HYBE HR Committee concluded the sexual harassment case with a ‘no charges’ decision on March 16. Since HYBE directly manages legal, HR, and PR matters through a shared service system, we find it perplexing that this issue is being revisited. This sudden reinterpretation to attack CEO Min Hee Jin is unfair.”

The controversy involves an employee who accused an executive of workplace harassment in March. On July 25, the online media outlet Dispatch reported that Min Hee Jin allegedly defended the executive or encouraged counterclaims against the employee, identified as “B.” However, ADOR and their legal team have denied these claims, asserting that she acted impartially and worked to mediate the conflict.

Shin & Kim also clarified that a gathering involving the employee took place after February 1 to help them adjust to the job. They emphasized that the meeting proceeded without issues and that the employee willingly attended.

The law firm further explained that the employee’s departure from the company was unrelated to the harassment incident. They noted that issues arose during the employee’s probation evaluation, which led to a mutual decision for them to leave the company.

In response to the cover-up allegations, Shin & Kim stated, “CEO Min Hee Jin fulfilled her responsibilities by issuing warnings to prevent similar issues in the future and proposing improvements for better HR procedures and transparency to HYBE.”

The law firm also criticized the media for publishing private KakaoTalk conversations, calling it an illegal invasion of privacy. They warned that if such reports continue, ADOR may pursue legal action.

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NewJeans Condolence Wreaths Protest Organized by “Bunnies”

Fans supporting ADOR CEO Min Hee Jin organize a NewJeans condolence wreaths protest, ignoring internal and external criticism

NewJeans’ fans, known as “Bunnies,” plan to protest at HYBE’s headquarters by sending condolence wreaths, a gesture traditionally used for funerals. The protest, scheduled from July 30 to August 1, reflects tensions between fans loyal to ADOR CEO Min Hee Jin and HYBE over ongoing conflicts. Despite knowing this event clashes with a LE SSERAFIM member’s birthday celebration at the same location, organizers decided to proceed, drawing significant criticism.

Members of the NewJeans gallery on DC Inside, an online community supportive of Min Hee Jin, initiated the protest. They announced the event on July 27, two weeks after LE SSERAFIM’s fans revealed plans for Kim Chae Won’s birthday festivities at HYBE, which include a “wrapping bus” and other celebratory activities.

The public argues that sending condolence wreaths during a birthday event creates a disturbing contrast, but organizers dismissed these concerns. LE SSERAFIM’s fans requested a change in the protest date, but NewJeans fans refused, pointing out that BTS’s fandom, ARMY, held a similar protest during a NewJeans member’s birthday. This is just among the controversies that pile up in relation to Min Hee Jin and HYBE.

Protest supporters believe their demonstration doesn’t directly involve LE SSERAFIM and should not interfere with the birthday event. However, many K-pop fans fear this protest could harm NewJeans’ reputation and create unnecessary conflicts. Additionally, tensions within HYBE remain high as Min Hee Jin faces separate legal battles with Source Music CEO So Sung Jin, who has accused her of embezzlement and filed a lawsuit demanding 500 million KRW (approximately 361,724 USD) in damages.

As the protest approaches, the K-pop community continues to monitor how both fandoms handle these overlapping events. The outcome could set a precedent for future fan demonstrations and their impact on K-pop artists.

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NewJeans Fans Protest HYBE’s Alleged Information Leaks

NewJeans fans stand in front of HYBE headquarters over alleged information leaks and media manipulation

NewJeans fans took action by sending protest trucks to HYBE’s headquarters, voicing their concerns over recent allegations against the company. Fans, who call themselves “Bunnies,” organized the protest after hearing that HYBE had allegedly leaked confidential information about NewJeans to Dispatch and other media outlets.

The protest trucks stationed in front of HYBE’s building displayed strong messages condemning the company’s actions. Fans accused HYBE of intentionally leaking sensitive information and manipulating media coverage to their advantage. One truck displayed the message, “Leaking information to YouTube channels and reverse viral marketing to yellow journalism, illegal personal information leaks by HYBE—above the law and human rights?”

Another message directly addressed HYBE’s leadership, including Bang Si Hyuk and Park Ji Won, demanding that they take responsibility and issue an apology. The fans’ protest underscored their support for NewJeans and ADOR while calling on HYBE to stop what they see as illegal and unethical practices.

This protest demonstrates the Bunnies’ commitment to protecting NewJeans and holding HYBE accountable for actions that they believe could harm the group. Fans are determined to ensure that their voices are heard and that HYBE ceases any actions that could negatively impact NewJeans.

The dispute between HYBE and ADOR, the label responsible for managing NewJeans, has intensified as fans grow increasingly concerned about the handling of the group’s information. Tensions escalated when allegations surfaced that HYBE, the parent company of ADOR, had leaked confidential details about NewJeans to media outlets like Dispatch.

Fans believe that this breach of trust undermines the group’s integrity and puts their privacy at risk. The conflict highlights the challenges within the management structure, where decisions by HYBE may not always align with ADOR’s interests, leading to growing dissatisfaction among the fanbase.

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Bang Si Hyuk Reveals to Have Purchased $26.4m Mansion in LA Through HYBE Labels Subsidiary

Bang Si Hyuk, the chairman of HYBE Labels, has recently revealed that he purchased a $26.4 million mansion in Los Angeles through a subsidiary company. The acquisition, which took place in April of last year, involved a HYBE Labels subsidiary known as BEL AIR STRADELLA, LLC. This information came to light after HYBE Labels made corrections to its 2024 state of affairs report.

Bang Si Hyuk used a subsidiary to acquire a luxurious mansion in Los Angeles, sparking shareholder speculation

The Korea Fair Trade Commission (KFTC) launched an investigation into HYBE Labels earlier this year, probing into the company’s state of affairs report. The KFTC did not disclose the specifics of what might have been omitted or fabricated in the report, but it was suspected that the omissions involved companies owned by Bang Si Hyuk and his relatives.

On July 26, KST, HYBE Labels addressed the issue by publishing several corrections to the report. Among these corrections was the acknowledgment of BEL AIR STRADELLA, LLC, a U.S. subsidiary fully owned by Bang Si Hyuk and registered in December 2023. Shareholders quickly speculated that this company was created solely to facilitate the purchase of the mansion in the upscale Bel Air neighborhood of Los Angeles, California.

Additionally, BEL AIR STRADELLA, LLC is registered as a real estate company, leading some shareholders to cynically comment, “Wonder what sort of lofty dreams drove him to open a real estate company…”

This mansion, previously owned by comedian Trevor Noah until 2022, has now become a focal point of discussion among HYBE shareholders. It raises questions about the motivations behind the purchase and the use of a subsidiary to acquire such a luxurious property.

In related news, HYBE and ADOR’s dispute still continues to worsen despite numerous attempts to fix legal hearings. Previously, Min Hee Jin’s Kakao messages were also exposed, sparking huge controversy among its employees and the public.

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HYBE Stock Prices Plummet After New CEO Announcement

HYBE’s financial troubles seem unrelenting this year, with the company’s stock prices plunging to unprecedented lows following the new CEO announcement.

Did The New CEO Announcement Cause HYBE Stock Prices to Plummet?

Earlier this week, it was revealed that Lee Jae Sang, the current Chief Strategy Officer (CSO), will replace Park Ji Won as HYBE’s CEO. This decision was met with disapproval from fan communities, as Lee’s past controversies resurfaced almost immediately after the news broke. The stock market also reacted negatively to this sudden leadership change, with HYBE stock hitting its lowest price in 18 months on Thursday, July 25.

HYBE shares closed at ₩170,000 KRW (approximately $123 USD) on Thursday, marking the lowest point since January 2023. This decline occurred just a day after the announcement of Lee Jae Sang’s appointment as CEO. The stock had previously been recovering from a dip caused by BTS’s hiatus announcement.

Who is Lee Jae Sang?

HYBE has yet to hold its shareholder and board meetings where the final decision to appoint Lee Jae Sang as the new CEO will be made. Lee joined HYBE in 2018, back when it was still known as Big Hit Entertainment.

Following the disclosure of Lee’s appointment, numerous allegations against him began circulating on community sites. These allegations included accusations of “threatening” ADOR’s former vice president and coercing them into revealing private conversations with CEO Min Hee Jin. Additionally, Lee has faced criticism for his involvement in acquiring Ithaca Holdings while he was the CEO of HYBE America, as well as for co-establishing an NFT company aimed at creating NFTs using HYBE artists.

The acquisition of Ithaca Holdings in 2021 has been particularly contentious. HYBE America has reported significant net losses for two consecutive years following the purchase. The losses amounted to ₩70.1 billion KRW (approximately $50.8 million USD) in the first year and ₩142 billion KRW (approximately $103 million USD) in the second year. This acquisition has been viewed by many as a financial misstep, contributing to HYBE’s ongoing struggles.

HYBE America’s investment in the NFT company Levvels has also proved to be a financial burden. In 2023, the investment generated an operating loss of ₩18.0 billion KRW (approximately $13.0 million USD). The financial strain continued into the first quarter of 2024, with the company recording a loss of ₩3.50 billion KRW (approximately $2.53 million USD).

What Will Happen to HYBE?

The controversies and financial losses associated with Lee Jae Sang have understandably caused concern among investors and fans alike. His past decisions and the financial repercussions of those decisions are now being scrutinized more than ever as he steps into the role of CEO. The market’s reaction to his appointment reflects a broader uncertainty about the future direction of HYBE under his leadership.

As HYBE prepares for its upcoming shareholder and board meetings, the company faces the dual challenge of restoring investor confidence and addressing the internal and external criticisms leveled against its new CEO. The outcome of these meetings and the company’s subsequent actions will be crucial in determining whether HYBE can navigate through these turbulent times and regain its footing in the competitive entertainment industry.

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