HYBE launches audit of ADOR Management, CEO Min under scrutiny
South Korean entertainment giant, HYBE, has commenced an investigation into its subsidiary music label, ADOR. The probe includes scrutiny of ADOR's CEO Min Hee-jin, who established the label in 2021. This move comes after HYBE detected attempts by ADOR to assert its independence. In response to these developments, a shareholders' meeting was called by the BTS label to ensure accountability within the leadership team at ADOR.
Why does this story matter?
With HYBE holding an 80% stake in ADOR, the remaining 20% is owned by ADOR management and Min herself. Notably, Min played a pivotal role in creating the idol group NewJeans. She initially joined the label in 2019 as its chief brand officer and later ascended to the position of ADOR's CEO in November 2021. However, before her tenure at HYBE, Min had a significant 15-year career with SM Entertainment, a notable rival of BigHit (HYBE).
HYBE seeks additional directorship and the CEO's resignation
In addition to the investigation, HYBE has proposed changes to ADOR's board. The company aims to nominate an additional director from its own ranks, given that both current directors were handpicked by Min from SM Entertainment. Furthermore, reports suggest that HYBE has issued a document requesting Min's resignation as CEO of ADOR. When questioned about these developments by Soompi, a representative from HYBE confirmed, "It is true that an audit was initiated."
HYBE's extended agreement with Universal Music Group
This investigation follows closely after HYBE announced a 10-year extension of its agreement with Universal Music Group (UMG). The deal grants UMG exclusive distribution rights for music from HYBE's artists. This arrangement not only covers existing labels but also extends to any new labels that may be established under HYBE in the future. As part of this agreement, UMG will assist in promoting and marketing activities for HYBE artists in North America, as reported by AFP.
A look back at Min's contributions to HYBE's success
As the chief brand officer, Min was initially entrusted with the task of rebranding BigHit into what we now know as HYBE Corporation. In addition to witnessing success with world-renowned boy band BTS, HYBE, under the watch of Min, strategically acquired small but promising labels, including Pledis Entertainment (SEVENTEEN), Source Music (representing Le Sserafim), and KOZ Entertainment (ZICO and DVWN). Most recently, HYBE acquired a $78M stake in SME from the K-pop company's founder Lee Soo-man.
