[Exclusive] NewJeans is worth 1 trillon won, if HYBE is having a hard time, ADOR are free to go around"... Min Heejin and President Lee obtained the text messages

 May 27, 2024

The 36th day of conflict between HYBE and Min Heejin. The issue is not about kalguksu or anything like that. It doesn't matter who has aspecial relationship with NewJeans among Chairman Bang Sihyuk and CEO Min Heejin. They key lies in the conflict over management rights.

TV Daily obtained text messages from CEO of ADOR Min Heejin and Deputy CEO Lee, and key executives of ADOR. Focusing on the management rights conflict between HYBE and ADOR, the text that CEO Min and Deputy Lee actually exchanged was reconstructed.

"If you give HYBE a hard time, ADOR is free"

"It's important to get out of BTS", "In the end, we have to use the media"

In February this year, Lee who is called Min's right-hand man, set up a one-year plan for ADOR in all of BTS members. The goal is ADOR's freedom(?). Lee told Min that they (HYBE) should make things difficult and ADOR should be free. He points out the illusions of HYBE's muti-label system and IT business. They were dissatisfied with HYBE's management style and planned to make it official.

Trans:

Sunday, February 4, 2024

Deputy Lee: You have to use your hand before BTS come in for the next year

MHJ: LOL

Deputy Lee: The illusions of the multi-label/American soldier/platform IT business within a year, if it's destined to be

MHJ: I hope so

Deputy Lee: This is my plan for ADOR

MHJ: Eww, I have to use the media

Deputy Lee: If something like pusback spreads, they will also lose trust in HYBE, right? If this kind of damage accumulates in an area, the bleeding will be big

MHJ: HYBE. We need to prepare a strategy of how we can get out of it when we get caught

MHJ: Let's meet this XXXXX guy sometime. A reporter introduce by XXX (*an analyst)

Deputy Lee: Yes, good. I'll be careful. First of all, let's get to know each other and start with an accountant, a competitor, an investment company, an outside director, a securities company, a media, a public institution/not officially, but a personal network. Like Heejin-nim penetrating the brand with a personal skill

MHJ: Yes, it's better to do it individually

Deputy Lee: Anyway, my goal in February is to create this solidarity outside the country and to bring out the capabilities of the ADOR organization inside.

Trans:

Friday, March 15,2024

Deputy Lee: No matter how much I think about it, I think the members' withdrawal is too much damage on our side. (We have to leave all the past album behind, and all the brands and contracts are all concentrated on ADOR)

Deputy Lee: But as you said, I think we can use that amount as a means of negotiating

Deputy Lee: I mean, no matter how high HYBE costs, it's hard for a certain amount of money (e.g. 600 billion won, 10 billion per month * 60 months (five years))

Deputy Lee: Contract termination costs (600 billion) + new down payment (100 billion) + company initial investment (20 billion) is enough to cover 720 billion

Deputy Lee: If we negotiate like this, we could meet at about 800 billion

MHJ: No, they put their future value in it

MHJ: I'm glad that Bang Sihyuk and Park Jiwon's luck is like a sh*t LOL

MHJ: That's why I'm calling it over a trillion won in future value estimates

MHJ: These guys bought a company with nothing for a trillion won, so would you give me NewJeans for 800 billion won? Are you really out of touch with the reality?

On the same day, the talks continued in detail. Min's instructions on Lee's idea. The way was to use the press, which Min despised so much. 

Min, who criticized HYBE's "unpleasing" at a press conference earlier this month, worked with Lee on an agenda of public opinion that HYBE would be criticized by the media. Min saw the timing as the time for independence of Adore. Min and Lee even texted each other the names of media companies and reporters they would mobilize in the "unpleasing." The media outlet has written articles criticizing Hive several times. The reporter described in the text was also introduced by an analyst who analyzed L's documents that Hive found through the audit.

"NewJeans' value will be over 1 trillion won"

On March 14, their conversations took a step further. Min, who said he had never met an investor, was already meeting with the investor. The investor's condition is that all members of NewJeans and NewJeans must be brought from Hive to make investments. The next day, Min and L calculated the amount of damages to be incurred if New Jeans is brought out from HYBE.

Trans:

Deputy Lee: Bro, do you know about OOO finance? Or a man named Chairman OOO

CEO of the management company: I don't know

Deputy Lee: If you don't know, I don't think it's a name. Thank you

CEO of the management company: The name is weird

Deputy Lee: Me too

CEO of the management company: OO, I think he has money there.

But it's not enough to make a deal with you

CEO of the management company: Is that person the owner?

Deputy Lee: It's seems so

Deputy Lee: Candidacy lol

Trans:

March 18, 2024

Deputy Lee:

G*** Investment Authority says it's interested in K-Entertainment

Lee Hyeong's opinion is that it will be easier and more freedom to find a FI (Financial Investor) than to find a SI (Strategic Investor). The reason is

1. Strategic Investor (SI) are somehow forced to interfere in a way that is beneficial to their business.

2. What financial investor (FI) want is no interference in management because it's a company with investment and grater profits after all.

3. After drawing a big picture, it is said that it is an ideal picture to get sympathy from FI investorys, grow a company independently from H, and go public, but I also had a lot of sympathy

They say it's a waste to leave the company and open a new one or leave the company. 

The most important thing is not to lose it

MHJ: He was very hopeful

Deputy Lee: Well, other than that, we talked a lot about having to hide our toenails, having to put up with it even when it gets dirty, etc, I thought the important thing was information.

As Min put it, all of their conversations could be "sad stories, jokes from colleagues." What is clear is that their plans have gone beyond text messages and have been put into action. On March 18, Lee informed the head of a private equity fund management company that he has secured investors to invest in Adore. ***He is the chairman of Financial Group. According to them, ***He is the 'new Tranju'.

It was not easy for the plan to become a reality. They decided that it would not be easy to bring out NewJeans from HYBE after much consideration. Min's aides, including Min and Lee, planned to use their stake in Adore. It is a way for themselves as minority shareholders to become the actual owners of Adore. Min owns 18 percent of ADOR's stake and the remaining 2 percent is owned by executives close to Min.

"It is impossible to seek to usurp the management control of Hive, which owns 80 percent of the company," Min told a news conference. However, Min had that impossible dream. "There are cases in the capital market where minority shareholders who actually run a company break through the checks of major shareholders and establish themselves as the de facto owners of a company," he said.

Trans:

March 30, 2024

MHJ: Internal direct filling. The parents are bringing it to HYBE

Deputy Lee: Oh, yes

MHJ: Then what did you mean by the internal feeling?

Deputy Lee: At first, I understood and wrote my opinion. However, with the intention that it will be known externally when filling an internal report, I suggested that it will be published as a news article firs tbefore filling an internal report

MHJ: Why?

Deputy Lee: As you wrote in your opinion, I don't think the family's involvement in any way will be used as a good image, and from our perspective, we think it would be better to create more public opinion and then make it public

MHJ: Huh?! I don't get it

I think it would be a contractual problem if ADOR became involved in the leaked article

ADOR cannot commit a harmful act, so after the parents' compaint is confirmed,

Deputy Lee: I may be saying this because I don't know the exact details of the contract

MHJ: But you're a layman's point of view, so it's worth to listening to

Trans:

Sun, April 20, 2024

MHJ

However, even if there is talk about selling ADOR quietly inside without making any external announcements.

We're in a position to be sold, you know what I mean because I can't lead 

I don't know what the purpose of the risk you're talking about is

And what the risk is there with the Fair Trade Commission?

Whether there is an investigation or not, whether it goes awry or not

In the meantime, the push-out issue will blow over and the world will turn upside down

It's better for us to just say something quickly

The best thing is that HYBE came to me with a proposal to compromise in order to prevent such a large-scale bad news

Then, we'll talk about it like this

"CEO Min Heejin said, 'Let NewJeans parents go first'"

On March 29, Lee wrote a "business note" on what he called a "personal note" to the media. It was right after Min met with the parents of the members of NewJeans. The note includes complaints about HYBE and how he made it known to the media. ▶Promoting press releases, not receiving greetings, taking away concepts ▶Promoting girl groups ▶Promoting them as the first girl group.

These contents are almost in line with Min's official position, which claimed that HYBE's conflict with him stemmed from internal accusations, not conspiracy to take over management rights.

It should be noted that the moral hazard was designated. Lee made a plan to weaken HYBE's sense of ethics. This gives a glimpse into why Min called herself a whistleblower. Those who decided on the propaganda dubbed the moral hazard moved very quickly afterwards. Min ordered Hive to send an e-mail message containing these details on April 3. The time to inform the media has also been decided in advance. It is April 11. Since it is highly likely that Hive will not approve it, the government plans to stage a public opinion campaign then.

Min also actively utilized the parents of NewJeans. Min told Lee and other close aides that parents should raise the issue first. He drew the picture that since ADOR is not allowed to directly commit visual harm, parents should raise the issue first.

Original article: TV Daily