Hybe Files Police Complaint Against ADOR Executives Amidst Allegations of Betrayal
South Korea’s largest entertainment agency, Hybe, has filed an official police complaint against executives of its sublabel ADOR, alleging breach of trust and other offenses. The move comes after Hybe, which manages K-pop sensation BTS, conducted an audit of ADOR on April 22nd following allegations that CEO Min Hee-jin was aiming to make the sublabel independent.
Hybe has released a statement to CNBC confirming the complaint and also calling for Min’s resignation. However, Min has denied these accusations and has accused Hybe of copying the concept of ADOR’s girl group, NewJeans, for another girl group under a different Hybe subsidiary.
Hybe has further stated to CNBC that it possesses substantial evidence that Min sought to seize control of the sublabel. The company claims that this evidence includes detailed discussions in which Min ordered ADOR management to find ways to pressure HYBE into selling ADOR’s shares.
Reports from South Korean media outlets have published a screenshot provided by Hybe of a message exchange between Min and ADOR’s vice CEO. In the message, the vice CEO outlines various methods to take the label independent, such as contacting other investors and convincing Hybe to sell its stake in the sublabel.
Hybe has also stated that one of the parties audited “submitted information assets to seize the management of ADOR and to attempt to contact external investors. The auditee also admitted to creating the documents to attack Hybe.”
When the news of the audit was announced on Monday, Hybe’s shares suffered an 8% decline, marking their largest fall in seven months. However, the stock has since stabilized. Hybe currently holds an 80% stake in ADOR, with Min holding 18% and other executives splitting the remaining 2%.
This development comes as NewJeans prepares to release a new single on May 24th. Hybe has stated that it will continue to provide support for the group, including their upcoming comeback, and will meet with the members’ legal representatives to discuss how to protect their interests.
The conflict between Hybe and ADOR represents a blow to Hybe’s “multi-label strategy,” in which the agency operates multiple independent labels to foster a diverse range of music and content. This strategy differs from traditional K-pop agencies, which typically keep all their artists under the same umbrella and rely on a few major names for growth.
In a 2022 press release, Hybe expressed its commitment to the growth of its sublabels through “mutual cooperation” and “healthy competition.” This strategy was also recognized as one of Hybe’s strengths in an investor note by Bernstein last year. The revenue and growth generated by Hybe’s sublabels have helped offset the impact of BTS’s hiatus due to South Korea’s mandatory military service.
In contrast, the shares of rival agency YG Entertainment experienced significant fluctuations after members of the group Blackpink did not renew their individual contracts with the company.
