HYBE interim report on ADOR audit; Prepares formal accusation against CEO and associates | – Times of India

HYBE has issued an interim report detailing the findings of its audit into ADOR, a subsidiary label under its umbrella. The saga began on April 22 when HYBE launched an audit into ADOR’s management amidst allegations of the latter’s attempts to assert independence. This move came in response to growing concerns within HYBE about ADOR’s perceived bid for autonomy.In a tit-for-tat exchange, ADOR promptly fired back with accusations that ILLIT, a label under HYBE, had plagiarized NewJeans’ concept.
Now, on April 25, HYBE has escalated the situation by announcing its intention to file formal accusations against ADOR CEO Min Hee Jin and other implicated individuals for breaches of occupational trust. As reported by Soompi, HYBE released the following statement regarding the audit.
“According to the audit results, HYBE confirmed and secured concrete evidence that a plan to usurp management control was established under the direction of ADOR’s CEO.
One of the auditees submitted digital evidence containing information about the plan to seize management control and contact outside investors and admitted that they had written documents to attack HYBE during the investigation.
According to face-to-face investigations and the conversation record from the submitted digital evidence, the CEO of ADOR instructed the management team to devise ways to pressure HYBE to sell the ADOR shares it holds.
In response to this directive, specific discussions took place on ways to prematurely terminate exclusive contracts with artists and invalidate contracts between the CEO of ADOR and HYBE. Conversations such as, “pull in global funds and make a deal with HYBE,” “critically counterattack everything HYBE does,” and, “think of ways to torment HYBE” also ensued.
The conversation record also contained execution plans such as “preparing for a battle of public opinion in May” and “making ADOR an empty shell and taking it away.”
HYBE also obtained a statement from the auditee that “the wording ‘ultimately leaving HYBE’ was written exactly as what the CEO of ADOR said.”
HYBE CEO Park Ji Won said, “I am apologetic for causing concerns to fans, artists, and personnel [of the labels] for what happened in the process of upgrading the multi-label [system],” and added, “Now that the incident has come to a conclusion, we will maximize our efforts for the psychological counseling and emotional stability of the artists, who are valuable assets of K-pop”.
A conversation between ADOR’s vice president ‘A’ and Min Hee Jin was also revealed, it read, ““A”: There is this option also
– Put option __% exit on January 2, 2025 (2023 operating profit: 33.5 trillion won / 2024 approximately __ won, average pre-tax cash out of approximately __ won)
– ADOR becomes an empty shell / File a lawsuit for infringement of rights
– Seek financial investors (CEO Min + plan to buy out ADOR from HYBE)
– Suggest that HYBE sell ADOR
– Sold at a reasonable price
– CEO Min is the CEO of ADOR + acquires ADOR shares with the cashed out money + newly signs __ contract
If this happens, the leftover __% that wasn’t able to be sold in the past becomes useful again
Min Hee Jin: Wow”.