Heejin Min, CEO of ADOR, launches ‘defence of dismissal’ against HYBE
ADOR CEO Min Hee-jin began her ‘removal defence’ against HYBE today (17th). The Seoul Central District Court held a hearing this morning on the preliminary injunction lawsuit against parent company HYBE. The move is aimed at preventing HYBE, the largest shareholder, from exercising its voting rights at ADOR’s extraordinary general meeting on 31 May.
HYBE has previously demanded Min’s removal. If HYBE, which holds 80% of ADOR’s shares, exercises its voting rights at the extraordinary general meeting, Min’s dismissal is certain. In response, Min filed a lawsuit for a preliminary injunction against the exercise of voting rights to defend his position. The court’s judgement will determine whether Mr Min will remain in his position.
HYBE announced on 22 March that it had uncovered allegations of embezzlement by Min and launched an audit. HYBE alleges that Min was involved in a number of allegations, including allegedly stealing management control, demanding exclusive contract rights to Newzine, and embezzlement. On the 15th, the conflict between HYBE and ADOR intensified over a meeting with analysts.
Analyst meeting controversy
According to MoneyToday, Analyst A, a foreign investor who travelled to South Korea last month to invest in HYBE, arranged a separate meeting with ADOR executives before the HYBE meeting. HYBE claimed to have obtained the messenger chat logs between Vice CEO L and CEO Min regarding the meeting with the foreign investor, and believes that Mr A actually advised on the hijacking of ADOR’s management.
Heejin Min’s rebuttal
On the 16th, Min Hee-jin’s company countered that “the analyst did not provide any review opinions related to any management takeover, including capital increase or sale, because he knew that capital increase or sale was impossible without the consent of the majority shareholders.” “The lunch with the Vice President of ADOR was merely a preliminary meeting with HYBE, and it is plainly false to portray it as a separate investor meeting to discuss the sale of ADOR.”
HYBE’s further rebuttal
HYBE responded, “The specific dialogue with the investment community, as disclosed by Ms. Min, would not have taken place if the takeover was Saddam. At the press conference on 25 April, Min claimed that she had never met with investors, saying, ‘Bring me the names of the investors and what agreements you have with them,’ but the evidence and facts show that she is lying.”
The lawsuit marks the culmination of a legal battle between Min and HYBE. HYBE is demanding Min’s dismissal, highlighting allegations of embezzlement and attempts to seize control, which Min strongly denies. The court’s decision will largely determine whether Min will remain in her position and the future direction of ADOR. The outcome of the fierce legal battle between HYBE and Min will be closely watched.
