HYBE created a shockwave in the world of Korean entertainment when it announced on 22 April 2024 that it was launching an audit on its subsidiary ADOR. The incident has led to major questions on why the label made the sudden move and has brought the lens on Min Hee-jin, who is the chief executive officer (CEO) of ADOR.
HYBE, the management company with which BTS renewed contracts, accused Min and one other executive in her management of attempting to take full control over ADOR through ways that would compel the former to let go of its subsidiary. The audit team reportedly seized computer assets at ADOR offices and also took statements from officials of the company.
“It is correct that the company exercised its right to audit the ADOR management on suspicions that the management tried to seize control of the company,” a Hybe official confirmed, according to Yonhap News Agency.
HYBE’s serious charges include leakage of confidential information by the executives as well as Min. Hybe, founded and chaired by Bang Si-hyuk, has sought Min’s resignation as CEO.
Who is Min Hee-jin? Everything to know about the ADOR CEO
Rise from SM Entertainment
Min Hee-jin started her career at SM Entertainment in 2002 as a graphic designer. Over the next few years, she rose to the position of creative director at SM Entertainment. It was during her time that the agency created some of the world’s biggest K-pop groups, notably Girls’ Generation, f(x), Exo and Red Velvet.
SM Entertainment is one of the biggest K-pop groups alongside HYBE, YG Entertainment of BLACKPINK, and JYP Entertainment of bands such as 2PM and Stray Kids.
Min is reportedly the driving force in the change that K-pop underwent from the 2000s decade to the 2010s decade. She took an experimental approach to art direction and played a crucial role in turning K-pop from its traditional style to the more hip modern style based on unique concepts.
When she joined HYBE Corporation in 2019, Min started as chief brand officer. Her task was to supervise and execute the label’s rebranding efforts.
Two years later, in November, she was made the CEO of ADOR. In July 2022, Min unveiled her brand’s first K-pop group — the all-girl NewJeans.
The band took off instantly, hitting No.1 on South Korea’s Circle Digital Chart with their debut son “Attention.” By the end of 2023, NewJeans established itself as a force in K-pop. Apart from Billboard Hot 100 and Billboard Global 200 records, the band was counted among TIME magazine’s Next Generation Leaders as well as Forbes‘s Korea Power Celebrity 40.
Before the controversy, Min was in the news for winning the Best Producer award at the 2024 Golden Disc Awards. The award was presented to her by NewJeans.
Her own K-pop group is not the only one Min has been associated with. Kim Tae-hyung, better known as V of BTS, released his solo album Layoverwith inspiration from f(x)’s Pink Tape.
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V praised Min for collaborating with him on his album and for her sincerity.
Read about the biggest entertainment companies in the K-pop industry
HYBE vs Min Hee-jin: The controversy explained
A day after making the audit announcement, HYBE revealed that it found internal documents mentioning the ways in which ADOR would separate itself from its parent company, including laying the groundwork that would force HYBE to sell its stake in ADOR to private equity firms.
HYBE owns 80 per cent of ADOR. The rest is owned by the management, of which Min Hee-jin alone holds 18 per cent making her the second-largest shareholder.
Countering the charge later on the same day, ADOR’s unidentified deputy CEO and aide to CEO Min Hee-jin told Yonhap News Agencythat the documents were his own thoughts and had no connection whatsoever to his superior.
“It stems from my concerns over the unsolved long-standing conflicts between HYBE and ADOR. This document was written based on my personal thoughts and experiences and has not been discussed with Min and other ADOR executives,” he reportedly said.
“I deeply regret that mere personal reflections, which are no more than a ‘memo’ level of writing that has never been implemented, have been leaked to HYBE and portrayed in various news articles as if they were an internal document for a grand conspiracy, just because they were stored on a company laptop,” the official added, according to Yonhap.
Min has already defended herself. On 22 April, she issued a statement accusing Bang Si-hyuk’s company of copying the concept of her label’s iconic group NewJeans for HYBE’s new girl group ILLIT.
Calling the allegations “an absurd media play,” Min said that HYBE was “trying to dismiss me as I took issue with ILLIT copying NewJeans.”
Min also said that everything from “hair, makeup, costumes, choreography, photography, video and event appearances” is the same in ILLIT. She alleged that HYBE is “blinded by short-term profits and is mass-producing unoriginality.”
ILLIT was launched in March 2024 by Belift Lab — another subsidiary of HYBE. They debuted with the song “Magnetic,” which became an instant success and is now the first debut song by a K-pop group to chart on Billboard’s Hot 100.
Speaking on the charge of attempted takeover of HYBE, Min said, “How can I seize management rights with the 18 per cent stake I own? It is impossible for me to seize management rights of ADOR because HYBE owns 80 per cent of the shares. Without consent, it is impossible for ADOR to be independent from HYBE. It is difficult to understand HYBE’s claim.”
What is the net worth of Min Hee-jin?
Min Hee-jin has a very high net worth. In fact, she is one of the richest persons in Korean entertainment. While it is difficult to find information about the wealth of celebrities, Min’s financial details are comparatively easier to obtain since her stake in ADOR is publicly available.
Korean media house iNews 24in May 2023 revealed that Min is one of the richest female shareholders in South Korea despite not being from an established chaebol (conglomerate family).
The report said that a survey conducted by the business analysis research institute Leaders Index found that Min is one of the 34 female stockholders out of 417 who are not from a chaebol. The collective wealth held by the 34, including Min, was around 8.1 per cent of the total stock wealth held by all. The report did not reveal the exact net worth of Min Hee-jin.
Thus, how much is Min’s actual net worth? The 2022 financial report filed by ADOR might give a clue. According to it, the company had a revenue of around USD 13.6 million but it posted operating losses of USD 2.92 million. This means that Min’s stake in the company was, at the time, in a precarious position.
The saving grace for her is the flexibility of her stocks. She has a security net with her reported put options (right to sell stocks at a predetermined price) on HYBE, which is estimated at around USD 73 million. The bottom line is that if ADOR’s corporate value reaches KRW 1 trillion (around USD 727 million), Min will make around KRW 200 billion (around USD 145 million) by selling her shares.
Nevertheless, Min was named among female Korean business icons, such as former Leeum Museum of Art director Hong Ra Hee, Hotel Shilla president Lee Boo Jin, and Samsung Welfare Foundation chairman Lee Seo Hyun, in the Leaders Index’s report. This proves that she is one of the most influential personalities in the Korean peninsula. Her fate and fortune now rests on the outcome of the HYBE vs ADOR controversy.
(Hero and Featured images: Courtesy of MINHEEJIN/@min.hee.jin/Instagram)
Frequently Asked Questions (FAQs)
What did Min Hee-jin do?
Min Hee-jin is at the centre of a major controversy in Korea after HYBE accused her of trying to secede its subsidiary, ADOR, from the parent company. Min is ADOR’s CEO.
Who is the CEO of NewJeans?
NewJeans is a K-pop girl group. As such, it cannot have a CEO. The group is managed by ADOR, whose CEO is Min Hee-jin.
When did Min Hee-jin leave SM?
Min Hee-jin left SM Entertainment in 2019.
What is ADOR in HYBE?
ADOR is a music agency and a subsidiary of HYBE, the parent group which shot to global fame with BTS.
