Hive, Adore Board Reshuffle... Min Heejin Retains CEO Position (Update)

Min Hee-jin, CEO of ADOR, is making a statement on the 25th at the Korea Conference Center in Seocho-gu, Seoul, regarding the conflict with the parent company HYBE. Earlier, HYBE announced the results of an interim audit on ADOR's management, including CEO Min Hee-jin, and stated that they would file charges against them for breach of trust and other allegations. Photo by Kang Jin-hyung aymsdream@

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HYBE has taken control of the ADORE board of directors. Min Hee-jin, CEO of ADORE, has become isolated as all other board members are HYBE executives.

At the ADORE shareholders' meeting held on the morning of the 31st, the largest shareholder HYBE proposed and passed a motion to dismiss Vice President Shin and Director Kim from the board. Subsequently, HYBE appointed three of its in-house executives?Lee Jae-sang as CSO, Kim Joo-young as CHRO, and Lee Kyung-jun as CFO?as new internal directors.

However, HYBE did not dismiss CEO Min following the court's approval of Min’s injunction request to prohibit the exercise of voting rights. At that time, the 50th Civil Division of the Seoul Central District Court ruled that even under the shareholder agreement between HYBE and Min, there was insufficient reason for HYBE to dismiss Min, and granted the injunction to prohibit the vote on the 'motion to dismiss CEO and internal director Min Hee-jin.'

Immediately after the court decision was announced, HYBE officially stated, “We respect the court’s judgment regarding the injunction lawsuit filed by CEO Min Hee-jin and will not exercise voting rights in favor of the ‘motion to dismiss internal director Min Hee-jin’ at this extraordinary shareholders’ meeting.”

Nevertheless, HYBE indicated plans for a board reshuffle, stating, “The court clearly noted in its decision that ‘CEO Min Hee-jin attempted to take NewJeans out of HYBE’s control or pressured HYBE to sell its shares in ADORE, thereby weakening HYBE’s control over ADORE and seeking a way to independently control ADORE.’ Accordingly, we plan to proceed with follow-up measures within the legal framework.”

Min’s side warned, “As there is no reason to dismiss CEO Min Hee-jin, there is also no reason to dismiss the two internal directors aligned with Min. If HYBE dismisses these directors, it will be a clear violation of the court’s decision and an unjustified dismissal.” However, they ultimately failed to prevent the dismissal of Min’s internal directors.

The legal dispute between HYBE and CEO Min is expected to continue for some time. A police investigation into Min’s alleged breach of trust is underway, and the court’s substantive judgment on the matter is also expected to take time, suggesting a prolonged conflict.

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