HYBE has commenced an audit of its subsidiary label, ADOR, following allegations that its executives, including CEO Min Hee Jin, were attempting to separate from the parent company. An HYBE official confirmed to Xportsnews on April 22nd that an audit has indeed been triggered, but declined to comment further on the situation.
According to Yonhap News, evidence gathering is underway concerning reports that ADOR’s leadership was planning to break away from HYBE. The audit team has reportedly retrieved company IT assets and is securing verbal statements from the ADOR management. Min Hee Jin, a former executive at SM Entertainment, founded ADOR under HYBE in 2021, with HYBE holding an 80% stake in the label. Min and the rest of the ADOR management own the remaining 20%.
Industry sources revealed that HYBE sent a letter of inquiry to Min Hee Jin and deputy directors identified only as A and B. The letter addresses allegations of plotting to take over ADOR’s management rights, leaking business secrets, and engaging in nepotism.
The inquiry suggests that ADOR’s management might have leaked key information to outside parties with the intent to eventually sell HYBE’s 80% stake in ADOR to investors friendly to the current management. This plan reportedly involved damaging HYBE’s public image to justify the takeover.
In addition to liaising with securities analysts, overseas investment advisors, private equity funds, and venture capitalists to assess the sale structure, ADOR’s management is also accused of leaking contract information between ADOR and HYBE, manipulating public opinion against HYBE’s artists, and influencing the artists’ parents on the down-low.
The executives are also suspected of leaking personal information about artists, including health details and images of trainees before their debut. There are further claims that they accepted external recommendations for hiring, resulting in the leakage of employees’ personal information and other sensitive employment details.
HYBE’s decision to initiate the audit follows tips received about these activities, focusing on clarifying the facts behind these allegations. The situation continues to draw significant attention within the industry, with many watching closely how it will unfold.
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