HYBE's bid to oust ADOR CEO Min Hee-jin hits court
The legal battle between South Korean entertainment giant HYBE and ADOR is escalating, with the former seeking to remove ADOR's CEO, Min Hee-jin. In the latest development, the Seoul Western District Court is preparing to review HYBE's request for a special shareholders' meeting aimed at ousting Min. This private hearing, scheduled for Tuesday (KST), will reportedly adhere to the Non-Litigation Case Procedure Act guidelines.
Tensions rise as Min refuses to abide by HYBE's decision
On Monday, Min—through her legal team—announced that she would not comply with a board meeting decision made by HYBE. This defiance followed an unexpected audit of ADOR's management conducted by the BTS label on April 22. Post-audit, allegations of embezzlement were raised against Min, prompting HYBE to demand her resignation. In response to the deadlock, HYBE approached the court on April 25, requesting to "convene a temporary general meeting of shareholders."
HYBE requested the court to convene shareholders' meeting
If the court approves the shareholders' meeting, a notification will be sent to schedule an extraordinary general meeting within 15 days. HYBE plans to use this meeting to replace current directors, including CEO Min, with new appointees. The entire process is expected to take about two months. To note, Min joined ADOR in 2019 as its chief brand officer and later ascended to the position of CEO in November 2021.
Min denies HYBE's accusations of attempted takeover
Adding to the complexity, HYBE has accused Min of colluding with other executives to take over the subsidiary company. However, Min vehemently denied these allegations at an emergency press conference in Seoul last week. She presented several messages exchanged with Bang Si-hyuk, Chairman of HYBE, and CEO Park Ji-won as evidence that she had no intentions or actions toward seizing control of the company.
HYBE reiterated demand for Min's resignation after conference
In response to Min's press conference, HYBE released a statement asserting many of her claims were factually incorrect and challenging to refute individually. They reiterated their demand for her resignation, stating her conduct at the conference demonstrated her "unsuitability" as an executive. Meanwhile, Min's legal team pointed out that with HYBE owning an 80% stake in ADOR and Min only 18%, a takeover would be highly unlikely.
