Will HYBE Halt 'Min Hee-jin Dismissal' and Replace Board Members at ADORE's Extraordinary General Meeting?

Temporary Shareholders' Meeting of Adoer Held Today (31st)

The plan by HYBE, the parent company pushing for the dismissal of Min Hee-jin, CEO of ADOR, the agency of the group NewJeans, has come to an abrupt halt. On the 30th, following a court decision, HYBE, the major shareholder of ADOR, was prohibited from exercising voting rights on the agenda to dismiss CEO Min. Meanwhile, an extraordinary general meeting of shareholders is being held today (31st) with the agenda to dismiss two close associates of CEO Min, ADOR’s Vice President Shin and Director Kim.

[Image source=Yonhap News]

Earlier, the court granted CEO Min’s injunction request to prohibit the exercise of voting rights against HYBE, freeing her from the dismissal threat. However, it is expected that the board members close to CEO Min will be dismissed.

The Seoul Central District Court Civil Division 50 (Chief Judge Kim Sang-hoon) granted CEO Min’s injunction request against HYBE on the 30th. The court stated, "The reasons HYBE claims for CEO Min’s dismissal or resignation have not been sufficiently substantiated. While CEO Min’s actions may be considered a betrayal against HYBE, it is difficult to say they constitute a breach of trust against ADOR," thus ruling in favor of CEO Min.

As the court granted the injunction to prohibit the exercise of voting rights, HYBE will not be able to exercise voting rights in favor of the ‘dismissal of inside director Min Hee-jin’ at the extraordinary shareholders’ meeting of ADOR held today. However, this injunction applies only to CEO Min, and HYBE can exercise voting rights on the dismissal of the other two directors excluding CEO Min.

Regarding this, CEO Min’s legal representative, law firm Sejong, stated, "HYBE should respect the court’s injunction decision. Furthermore, since there are no grounds for dismissing CEO Min, there are also no grounds for dismissing the two inside directors close to CEO Min. Therefore, if HYBE dismisses these directors, it would be disregarding the court’s decision and dismissing them without just cause."

In response to the court’s decision, HYBE announced, "We will not exercise voting rights on the dismissal of CEO Min at the extraordinary shareholders’ meeting on the 31st," but added, "Since it was clearly stated that ‘CEO Min sought ways to independently control ADOR,’ we plan to proceed with follow-up procedures within the legal framework." In other words, HYBE made it clear that there is no possibility of reconciliation with CEO Min in the future. Accordingly, HYBE is expected to dismiss the two ADOR directors excluding CEO Min at today’s shareholders’ meeting.

Although CEO Min has retained her position due to the injunction, the conflict between HYBE and CEO Min is expected to be prolonged. HYBE, which sought to oust CEO Min through a public opinion battle, suffered significant damage including harm to its affiliated artists’ images and a drop in market capitalization. Meanwhile, CEO Min must operate the company under the scrutiny and pressure of the parent company while supporting NewJeans’ activities and preparing for litigation.

If the ADOR directors are replaced by HYBE-affiliated personnel through the shareholders’ meeting on the 31st, HYBE will gain an advantage in future internal board voting battles, and both sides are expected to continue an uneasy coexistence for the time being.

This content was produced with the assistance of AI translation services.