What are the repercussions of the two months of fighting between HYBE and Min Hee Jin? K-Selection
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What are the repercussions of the two months of fighting between HYBE and Min Hee Jin?

It is worth recalling that ADOR CEO Min Hee Jin held a second press conference on May 31, stating: “ I hope a compromise can be reached“. This declaration marked a new stage in the conflict which has been opposing HYBE, Korea's largest entertainment agency, and its subsidiary ADOR for almost two months.

On April 22, HYBE launched an internal audit, alleging that Min and ADOR management were attempting to take control of the company, then attempted to remove Min from office at an ADOR shareholder meeting on May 31st. However, on May 30, the court approved Min's injunction to prevent HYBE from exercising its voting rights at the shareholders' meeting, allowing her to retain her position. Min later attempted to reconcile with HYBE during a press conference on May 31, but the company has yet to give an official response. It must be said that both sides have experienced gains and losses during this period.

What are the repercussions of the two months of fighting between HYBE and Min Hee Jin? K-Selection

While HYBE claims a partial victory in preventing Min's alleged attempt to have ADOR become independent with NewJeans, the court recognized that Min had attempted to gain independence for ADOR but had not yet acted in this sense, which could be considered as a betrayal towards HYBE but not as a breach of its duties towards ADOR.

According to legal experts, HYBE's criminal prosecution of Min and his close associates for neglect of duty will only harm Min's position as the police investigation progresses. The Yongsan Police Station completed its investigation into HYBE and demanded that Min submit his laptop for forensic analysis. An industry insider noted that even if a laptop is formatted, forensic analysis can recover more than 90% of the data. Although Min has yet to respond to the request to show off his laptop, it's only a matter of time and HYBE will likely use the results of the investigation to determine the timing of Min's firing.

What are the repercussions of the two months of fighting between HYBE and Min Hee Jin? K-Selection

The accusations and public conflicts with HYBE have tarnished Min's image and reputation, thereby compromising the brand value of the artists involved and leading to a decline in HYBE's stock price. Min's criticism of practices strongly linked to the K-pop industry, such as excessive album sales tactics and plagiarism, have been particularly damaging to HYBE.

As for Belift Lab, another subsidiary of HYBE and the agency behind ILLIT, it recently filed a complaint against Min for interference and defamation following his accusations of plagiarism. This trial, accompanied by a new civil trial, demonstrates HYBE's strategy to protect its artists.

Public opinion changed significantly following public backlash and the emergency press conference given by Min on April 25, during which she criticized HYBE leaders. This conference was in fact the opportunity for Min to accuse the leaders of HYBE of plotting against her, using very harsh terms to describe their actions and many young workers appreciated her attitude towards the abuses of the company, which gave it a symbolic status.

What are the repercussions of the two months of fighting between HYBE and Min Hee Jin? K-Selection

It was then during her second press conference that Min spoke about NewJeans' achievements, highlighting her confidence as a planner and manager by saying: " I achieved in two years what other boy bands could have achieved in five or seven years."

That said, until HYBE agrees to reconcile, Min will remain entangled in ongoing civil and criminal proceedings that could, depending on the results of the investigation, jeopardize her shares worth KRW 100 billion (~75,6 million USD), because the shareholders' agreement could be invalidated. To prove the validity of the contract, Min must invest considerable resources.

Min Hee Jin reportedly obtained an injunction against HYBE

At the same time, the shareholders' agreement allows HYBE to repurchase Min's shares for approximately 3 billion KRW (~2,18 million USD) if it is proven that it has breached its duties. Critics say Min's actions could cause him to lose the right to sell his shares, valued at KRW 100 billion, at a set price by the end of the year, a sign of excessive power. who could leave her with nothing.

Min's breach of his fiduciary duty as CEO could further prevent him from attracting investment and relaunching his career independent of HYBE.

What is your opinion on this never-ending battle between Min and HYBE?

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오렐리

I hope she loses everything starting the war that they leave with her NJ with 0₩ and that we never hear from them again

@Purpleyou

What she started there, she will finish and assume the consequences. She wanted to harm Hybe and thought she would get away with it. Yes Hybe has her faults but she is a manipulator. Hybe certainly had losses but they will be back on their feet very quickly. The one who has the most to lose is her and her artists (too bad for New Jeans) who find themselves mixed up in this. This is Jin who is back so please don't involve him in these stories so that he can concentrate on his return. Thank you.

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