Everything we already know about the investigation

This Monday, the 22nd, HYBE began an audit against its subsidiary ADOR. This happened after the company detected attempts by ADOR to become independent, causing HYBE to request a shareholders’ meeting and, aiming to take control of the subsidiary, take the first control measures.

But, what has been found and decided so far? RECREIO gathered everything that is already known about the HYBE X ADOR case. Read:

First of all: what is auditing?

Auditing is nothing more than an investigation of the activities carried out by a company in order to verify whether its operation complies with the rules established in the contract. In this case, the action was taken after suspicion that ADOR was planning to stop being partially controlled by the large conglomerate HYBE.

It turns out that HYBE holds an 80% stake in ADOR, while the remaining 20% ​​is held by the CEO, Min Hee Jinand by the administration of ADOR.

Please note: Min Hee Jin was creative director and board member of SM Entertainment before becoming responsible for founding ADOR, the brand behind the girl group’s success NewJeans.

The accusations

According to the Koreaboo portal, Min Hee Jin has been trying to separate ADOR from HYBE since the beginning of this year, as the CEO would have received external consultancy to assume full management of ADOR, where she would have devised a plan for HYBE to sell its 80% stake to investors known for managing the company. LOVE IT.

The plan, according to the portal, included the disclosure of information about HYBE that suggested that the company was making unfair demands on ADOR, and that several data had already been leaked by Min Hee Jin and two deputy CEOs, whose names were not revealed, but who also came from SM Entertainment.

Another accusation is that Min Hee Jin and the two deputy CEOs allegedly tried to influence public opinion in a negative way against HYBE groups and idols, with the aim of tarnishing the conglomerate’s reputation.

Audit result

In the audit, it was confirmed that one of the CEOs kept HYBE’s confidential commercial information, which was made public.

Furthermore, in the reports, it was also revealed that there were inappropriate hiring of employees and leakage of confidential information from HYBE’s human resources as well as the company’s idols.

HYBE asks CEO Min Hee Jin to step down

As a result, upon inspection, HYBE asked for the resignation of Min Hee Jin to the position of CEO of ADOR, as well as having appointed an additional director of ADOR from HYBE, as both of the current directors of ADOR came from SM Entertainment.

Min Hee Jin speaks out

After confirmation of the audit becomes public, Min Heejin also spoke out. In the statement, the CEO gave her version of the facts, in addition to revealing that the disagreement with HYBE was the result of alleged plagiarism by ILLIT, as she claims that the new Belift girl group copied the NewJeans concept.

Read the full statement below:

This is ADOR Co, Ltd (hereinafter referred to as ADOR and CEO Min Hee Jin).

In order to protect the artists of our agency, NewJeans, as well as for the healthy development of our country’s music and cultural industry, we will make our official statement on the issue of ‘ILLIT copying NewJeans’.

HYBE maintains a multi-label system, in order to allow each company to produce its own music independently, valuing cultural diversity. ADOR is one of those labels. But ironically, the cultural production achieved by ADOR and the artist from our company NewJeans was the most severely violated by HYBE.

One of HYBE’s labels, BeLift Lab, debuted ILLIT in March 2024, a 5-member girl group. After the ILLIT teaser photos were released, there was an explosive reaction online that people thought ‘it was NewJeans’. The hair, makeup, looks, choreography, photos, videos and even ILLIT events, etc., all of their celebrity activities have copied NewJeans. There were comments that ILLIT is ‘Min Hee Jin’s style’, ‘Min Hee Jin’s type’ and ‘NewJeans style’, etc.

HYBE’s Bang Si Hyuk participated in the production of ILLIT’s debut album. ILLIT’s copying of NewJeans was not only carried out by BeLift Lab as a brand, but it is something that also concerns HYBE. As a leading K-Pop company, HYBE has been blinded by profits and is copying successful cultural content without any hesitation. Instead of showing something new, they are simply producing banality.

NewJeans is currently gearing up for a comeback in May. But ILLIT evoked NewJeans during the period when they weren’t promoting. Thanks to the emergence of a similar type of group, the image of NewJeans was consumed and dragged into unnecessary debates, being used as a topic among fans and the public, worrying and tiring them. The people who made this happen, HYBE and BeLift Lab, are profiting from it, but the ones who are suffering damage are ADOR and NewJeans.

There has been opinion that since we are both HYBE labels, the similarities between NewJeans and ILLIT are reasonable. What’s more, there were also reactions where they felt that ADOR and NewJeans were okay with copying. I’m setting the record straight as these reactions are absolute misunderstandings. Under a multi-label structure, each label can produce the music it wants independently, and just because you’re under the same umbrella doesn’t give you the right to copy another label’s cultural output.

And ADOR has never allowed anyone, whether HYBE, BeLift Lab or anyone else, to copy NewJeans production. ADOR does not want ILLIT and NewJeans to be linked in any way. We have no intention of allowing anyone to promote themselves using the title of ‘who and who is dongsaeng group’, just because they debuted under the HYBE umbrella.

ADOR expressed its objections to HYBE regarding BeLift Lab’s copying of NewJeans, as well as the successive issues related to HYBE’s treatment of NewJeans. But HYBE didn’t recognize BeLift Lab’s mistake, it was busy making excuses and stalling for time while postponing the response.

Then today, April 22, 2024, HYBE revealed that it is planning to take steps to fire CEO Min Hee Jin, sparking concerns that HYBE is planning to destroy ADOR’s value. At the same time, HYBE is trying to use the media to tarnish Min Hee Jin’s name with ridiculous allegations of attempted robbery of HYBE. How could protecting NewJeans’ cultural achievements mean hurting ADOR’s bottom line and mean that Min Hee Jin is trying to steal ADOR’s executive rights? It seems there is another reason that is difficult to understand.

HYBE and BeLift Lab have not apologized for this incident. Instead, it seems they believe all of this will disappear if Min Hee Jin is kicked out of ADOR. ADOR will exhaust all legal options to protect NewJeans’ cultural achievements and to protect the group from further plagiarism.

There is a chance that HYBE and BeLift Lab will bring together the differences between ILLIT and NewJeans and magnify them before their debut to bury this incident. As time passes, there is a chance that misunderstanding among fans and the public will increase. Because of this, ADOR released this statement after discussing it with our attorneys and NewJeans. We hope that through this, HYBE and BeLift Lab will acknowledge their mistakes, respect the cultural achievements of others, and (instead of plagiarizing) contribute to our country’s entertainment industry through hard work and creativity.

Thanks”.

HYBE shares fall after audit begins

After the case was covered in the media, at 3:30 pm KST (03:30 am on the same day, Brasília time), HYBE’s share price was at ₩212,500 KRW (about R$806.4375), with a drop of 7 .81% compared to the previous day’s closing price of ₩230,500 KRW (about R$874.7475).

It is necessary to remember that the case is still ongoing.