A Nasty Power Struggle Between ADOR CEO and HYBE

• A nasty power struggle between ADOR CEO Min Hee-Jin and HYBE has erupted which is likely to continue to negatively impact HYBE's share price in the next several months.

• ADOR CEO Min Hee-Jin owns an 18% stake in ADOR which was founded in 2021. HYBE owns the controlling 80% stake in ADOR.

• Given the nasty fight between ADOR and HYBE, it is likely that the two companies (including ADOR's CEO Min Hee-Jin) are likely to part their ways.

A nasty power struggle between ADOR CEO Min Hee-Jin and HYBE (352820 KS) has erupted, which resulted in HYBE's share price declining by 7.8% on 22 April. HYBE continues to maintain its top position in the Korean K-Pop industry with a market cap of 8.9 trillion won. We believe that this power struggle with the ADOR CEO Min Hee-Jin is likely to continue to negatively impact HYBE's share price in the next several months.

ADOR CEO Min Hee-Jin is one of the most influential women in the Korean K-pop industry. She owns an 18% stake in ADOR which was founded in 2021. HYBE owns the controlling 80% stake in ADOR. The remaining 2% is owned by other executives of the company. ADOR is the label company behind the highly popular girl group NewJeans which is currently the most important girls group for HYBE.

Prior to becoming the CEO of ADOR, Min Hee-Jin joined HYBE in 2019 as its chief brand officer. Before joining HYBE, Min Hee-Jin was a creative director at SM Entertainment where she worked with Girls Generation, SHINee, f(x), Red Velvet, and EXO.

HYBE is Launching an Investigation Against ADOR CEO Min Hee-Jin

On 22 April, HYBE launched an investigation against ADOR CEO Min Hee-Jin and another executive in the company. This other executive who is implicated in this investigation is suspected of having handed over to ADOR non-public documents and trade secrets necessary for ADOR's independence. HYBE is allegedly accusing these two executives in leaking confidential information in order to induce HYBE to sell its ownership in ADOR. As part of this investigation, HYBE has demanded a resignation of Min Hee-Jin.

Source: Joongang Daily