HYBE releases the details of ADOR's audit: ADOR allegedly leaked private information about HYBE

HYBEhas reportedly dispatched an audit questionnaire to its subsidiary label, ADOR. 

This questionnaire is said to detail allegations of leaking sensitive information, acquired with the intent of gaining control over management rights. It also includes claims of inappropriate external consulting and breaches such as the unauthorized release of private information and irregularities in staff recruitment. The industry views this questionnaire as potentially opening a Pandora's box that could expose misconduct within the ADOR management. 

On April 22, HYBE is said to have sent the audit questionnaire to Min Hee Jin, the CEO of ADOR, and another executive, Mr. A. The questionnaire reportedly seeks clarification on allegations of attempted management rights seizure, the leaking of trade secrets, and irregular personnel solicitations by the ADOR management.

The document indicates that ADOR's management may have shared important business details with outsiders, aiming to gain control over the company. It also suggests questionable consulting activities were involved in this effort. Min Hee Jin holds a 20% stake in ADOR.

Since the start of this year, it's been reported that ADOR's management has been planning to take over control from HYBE. The strategy apparently involved using HYBE's own unfair demands to tarnish its public image. This negative portrayal would then set the stage for ADOR to acquire 80% of ADOR's shares, currently owned by HYBE, to an investor who supports ADOR management's current leaders.

During this process, the ADOR management reportedly consulted with securities analysts, overseas investment consulting firms, private equity funds (PEFs), and venture capitalists (VCs). They are also alleged to have leaked contractual details between ADOR and HYBE. Additionally, covert operations were conducted to generate negative perceptions about HYBE's artists and to influence the artists' parents to exert pressure on HYBE.

Mr. A, who recently transitioned from HYBE to ADOR, has been pinpointed as a central figure in this scheme. It is claimed that during his time at HYBE, Mr. A secured a wealth of core trade secrets, including financial and contractual information, and leveraged these in formulating the management rights acquisition plan.

Additionally, it has been revealed that personal details about the artists, including photos and health information of trainees before their debut, were leaked.

There are also reports that the ADOR management accepted personnel solicitations from external parties and subsequently recruited employees. According to the questionnaire, it appears that sensitive information related to employees, such as personal data and details about hiring and appointments, were also leaked.

HYBE is said to have learned of these allegations through an anonymous tip-off. The initiation of HYBE's audit was aimed at verifying the accuracy of these claims, garnering significant industry attention in the process.

Meanwhile, on the same day, CEO Min Hee Jin issued an official statement dismissing the 'attempted management rights seizure' allegations as "baseless media speculation." She asserted, "When I raised the issue with (Belift Lab) new girl group ILLIT copying NewJeans, they attempted to remove me."