Korean media are reporting that HYBE is investigating NewJeans label ADOR for leaking confidential contracts and is asking their CEO to step down

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In major news, NewJeans label ADOR (which HYBE owns 80% of the company and CEO Min Heejin owns 18% and other ADOR executives own 2%) is being investigated for leaking confidential contracts.

According to Korean media, they have issued an emergency audit on ADOR and wants a meeting with ADOR’s shareholders and is asking ADOR’s CEO Min Heejin to stepdown.  Media are predicating that Min Heejin will reject the request for resignation.

According to the media, ADOR has leaked information and the CEO is allegedly trying to make ADOR independent from HYBE. Also, that HYBE audit team has visited the ADOR workplace to retrieve computer assets and are securing witness statements.

brief explanation: ador is owned 80% by hybe, 19% by mhj. ador has basically been leaking contracts & trading secrets that will lead to hybe selling their shares & ador becoming independent to outsiders. It’s a huge breach in company trust & now hybe is calling for mhj to resign

— odessa ꕤ ★ °✩⋆˙ (@hyeindolls) April 22, 2024

HYBE has reportedly asked Ador CEO Min Hee Jin to step down after suspecting that she was trying to make ADOR independent. pic.twitter.com/hZTtr8ICMu

— Viral Takes (@viraltakes) April 22, 2024

HYBE has recently excercised its right to audit ADOR.

It was confirmed HYBE began audiiting ADOR CEO #MinHeeJin and other executive ‘A’. There’s rumor recently spread that MinHeeJin is trying to become independent. HYBE holds 80% stake in ADOR, while Min & other executive holds… pic.twitter.com/L16LeAhrqJ

— KoreanUpdates! (@KoreanUpdates) April 22, 2024

CEO Min Heejin is a star producer who has earned a reputation in the music industry for the concepts and brands of famous idol groups such as Girls’ Generation, SHINee, and EXO at SM Entertainment. After transferring to HYBE, she was also in charge of branding and design of the new Yongsan building space.

According to Naver, “The HYBE audit team exercised this audit authority after detecting circumstances in which Adore executives leaked confidential contracts and induced HYBE to sell Adore stocks held by Hive. Hive also understands that Mr. A used his position to pass on Hive’s internal information to Adore”.

According to MTN, “If Adore’s board of directors does not comply with HYBE’s demands, there is no way to enforce it. In this case, it is highly likely that HYBE will take legal action, such as requesting a preliminary injunction to convene a general meeting of shareholders. If a general shareholders’ meeting is held according to the court’s decision, the path will be opened for directors nominated by HYBE to be included in the Adore board of directors.

Ador is a company created in 2021 by HYBE with a capital investment of 16.1 billion won, and is the label for popular girl group New Jeans. Ador recorded sales of 110.2 billion won, operating profit of 33.5 billion won, and net profit of 26.5 billion won in 2023.

NewJeans is expected to release two mini albums “How Sweet” and “Supernatural” on May 24th and June 21st.

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