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Hybe's headquarters in Yongsan, Seoul (Yonhap) |
K-pop powerhouse Hybe put three of its executives on the board of its sublabel ADOR housing popular girl group NewJeans on Friday, taking over control of the board amid a protracted conflict between the two companies over ADOR's management rights.
ADOR CEO Min Hee-jin retained her position during an extraordinary shareholders' meeting held at an undisclosed place in Seoul in line with Thursday's court decision to grant an injunction to prevent Hybe from exercising its voting rights in the shareholders' meeting to dismiss her.
Hybe, which holds an 80 percent stake in ADOR, had originally planned to remove Min as CEO during Friday's shareholder meeting over allegations that she plotted with aides to usurp control of the company. Min has consistently denied the allegations.
The sources identified the three new board members as Hybe's Chief Human Resources Officer Kim Ju-young, Chief Strategy Officer Lee Jae-sang and Chief Financial Officer Lee Kyung-jun.
The board's two previous members, identified only as Shin and Kim and who are Min's close aides, were dismissed from their positions.
This new board structure grants Hybe control over the board, over a month after the conflict surfaced on April 22, when the company launched an audit into the sublabel's management over suspicions that Min attempted to seize control of her company.
Hybe is reportedly aiming to settle confusion among ADOR employees by sending the three executives familiar with the situation with the label to the board, and to protect and support NewJeans, which recently returned to the music scene with a new single.
However, some industry insiders remain concerned that the conflict could continue due to potential clashes between CEO Min and other board members from Hybe on important matters requiring board approval.
Hybe reported Min to police later in April on breach of trust charges, claiming she plotted with her aides to take over control of her company and separate from Hybe, taking NewJeans with her. Min has denied the allegations and claimed that the recent audit conducted against her followed her internal whistleblowing.
On Thursday, the Seoul Central District Court acknowledged that Min had "clearly" sought independent control of ADOR but had hardly progressed to the actual implementation stage, saying it amounted to "betrayal" but not "breach of trust" as claimed by Hybe. (Yonhap)
