HYBE LAUNCHES LEGAL ACTION AGAINST MIN HEE JIN OVER ALLEGED FINANCIAL EMBEZZLEMENT; ADOR'S CEO COULD LOSE $80 MILLION

HYBE, the powerhouse behind BTS and several other K-pop acts, has made headlines as it embarks on a legal battle against ADOR's CEO, Min Hee Jin, over allegations of financial embezzlement. This move comes amidst an ongoing conflict between the two entertainment giants, raising questions about the integrity of the industry and the

management of K-pop talent.

The dispute between HYBE and ADOR has escalated in recent months, with accusations flying back and forth regarding financial impropriety and breach of contract. HYBE alleges that Min Hee Jin misused funds and engaged in embezzlement, jeopardising the financial interests of the company and its artists.

Min Hee Jin, a former creative director at SM Entertainment known for her work with iconic K-pop groups like Girls' Generation and Red Velvet, has vehemently denied HYBE's accusations, asserting her innocence and vowing to defend herself against the legal action.

Recent reports from a South Korean news outlet reveal that HYBE has taken legal action against Min Hee Jin, citing business embezzlement allegations. The lawsuit, filed last month, could potentially allow HYBE to acquire Min Hee Jin's shares in ADOR for a mere $2.4 million if the allegations are substantiated. A contractual agreement between the parties stipulates that in the event of a breach, HYBE retains the right to repurchase shares directly or through a third party.

Currently, HYBE holds an 80 percent stake in ADOR, while Min Hee Jin possesses 18 percent. However, the value of Min Hee Jin's shares, estimated at $80 million, is subject to significant depreciation if HYBE's embezzlement claims are validated by the court. This scenario could result in Min Hee Jin relinquishing her position within the company without compensation. Furthermore, it's reported that Min Hee Jin had borrowed funds from HYBE's chairman, Bang Si Hyuk, to secure the 18 percent shares last year. Consequently, if she repays the loan, she may face financial difficulties, potentially leading to bankruptcy.

2024-05-02T02:50:53Z dg43tfdfdgfd