The "NewJeans Incident" is becoming more like the "Fifty Fifty Incident"... The outlook...

 May 18th, 2024

Amid the ongoing dispute between HYBE and ADOR CEO Min Heejin, some point out that the appearance is reminiscent of the "Fifty Fifty Incident."

This is because even members of NewJeans, a group from ADOR, actively participated in the dispute between HYBE and Min, which had need in a dispute over management rights until then.

According to the music industry on the 18th, five members, Danielle, Minji, Hanni, Haerin and Hyein, filed a petition (sentence) with the court the day before the hearing date of Min's request for a provisional injunction to ban the exercise of voting rights.

This is the first time the members have made an official vote regarding the incident.

The details of the petition are not known, but the members are expected to support Min, given that they have shown strong bond since their debut by following Min as their "mother," and that their parents have sided with Min.

Trans:

2024.05.17  Submission of Danielle Marsh petition (petition, etc)

2024.05.17  Submission of Kim Minji petition (petition, etc)

2024.05.17  Submission of Pham Hanni petition (petition, etc)

2024.05.17  Submission of Kang Haerin petition (petition, etc)

2024.05.17  Submission of Lee Hyein petition (petition, etc)

However, not only the industry but also some fans seems to be concerned about their actions.

This is because it is a kind of "prohibition" to put singers ahead of disputes triggered by management conflicts.

Moreover, Haerin and Hyein, who are born in 2006 and 2008, are 18 and 17 years old, respectively, and some point out that minors are being swayed by adult fights.

As a result, not only the music industry but also the public are recalling the 'Fifty Fifty Crisist" that occurred last year.

🔹 What is the "Fifty Fifty Crisist"?

Fifty Fifty, a group belong to ATTRAKT (CEO Jeon Hongjoon), recorded remarkable results on the global chart, with its debut song "Cupid" that was ranked 17th on the U.S. Billboard in March last year.

It was an unusual hit for a rookie group that just debuted, especially a small and medium-sized agency, with a record of four months since its debut in November 2022.

However, the four members of Fifty Fifty filed a provisional injunction against their agency ATTRAKT in June last year to suspend the validity of their exclusive contract, citing uncertain settlement, and filed a complaint against CEO Jeon Hongjoon on charges of breach of trust in August the same year.

In the process, Dougie Bus (CEO Ahn Seong-il), a service contractor who was in charge of production, A&R (recording and artist planning) and marketing of Fifty Fifty members, reportedly tempered the members (to contact other agencies or organizations before sports player end their existing contracts) and colluded with parents to affect the members.

The parents even pushed ahead with a Korean trademark application for Fifty Fifty, which must be done by the agency.

On top of that, the controversy grew even more when it was revealed that Dougieverse had the copyright to the song "Cupid " which made Fifty Fifty known.

In addition, ATTRAKT also raised suspicious in June last year that there was and outside force (Warner Music Korea) trying to remove Fifty Fifty members.

In response, ATTRAKT filed a complaint against Ahn Seong-il, CEO of Dougie Bus, and three others on the 27th of the same month.

The court then rejected Fifty Fifty's application for a temporary injunction against ATTRAKT on August 28th to suspend the validity of the exclusive contract.

The members remained as members of ATTRAKT, and the members appealed against the dismissal of the application for a provisional injunction to suspend the exclusive contract against the court's decision.

In the meantime, public opinion on Fifty Fifty deteriorated sharply, and in October member Juna returned to ATTRAKT, filling an appeal against the dismissal of an application for a provisional injunction to suspend the validity of an exclusive contract..

The other three were in constant confrontation with ATTRAKT, And ATTRAKT announced the termination of the exclusive contract for the other three except for Kina in the same month. They also reported plans to showcase the four members of Fifty Fifty 2 with Kina at the center.

At the same time, ATTRAKT filed a civil lawsuits against the three members and their parents for damages caused by joint legal activities.

This series of events has caused enormous damage not only to Fifty Fifty but also to its agency, ATTRAKT.

Especially dhe to the dispute between ATTRAKT and Dougie Bus, Fifty Fifty had to stop all activities, even though it was able to reach overseas markets with much love around the world.

🔹 A similar look of "NewJeans Incident"

The dispute between HYBE and Min, which began with Min's alleged takeover of the management rights of ADOR, is developing in a similar manner.

HYBE (then Big Hit Entertainment) highly appreciated CEO Min's ability during SM Entertainment and recruited her as the Brand General Manager (CBO) in 2021. Afterwards, at her request, she was in charge of debuting a new girl group.

HYBE actively supported the girl group's debut by investing 16.1 billion won to establish a separate label.

In particular, with the news that a girl group was coming from the agency of the global group BTS, NewJeans received a lot of attention even before their debut. 

Since then, NewJeans, which debuted in August 2022, has been a huge success.

It is true that CEO Min's branding ability is excellent for their success, but it cannot be denied that HYBE's reputation and social infrastructure, including BTS, also had a big impact.

Meanwhile, HYBE began an emergency audit of ADOR in April after hearing that CEO Min was trying to take over ADOR's management rights.

According to HYBE, Min owns a stake worth more than 100 billion won and earns an annual salary of 2.7 billion won. Nevertheless, she attempted to take control of ADOR by conspiring with her aides.

To this end, HYBE believes that CEO Mi. Has accumulated justifications (plagiarism, discrimination, etc.) and misled public opinion by putting parents first (e-mail, etc.)

On top of that, HYBE also disclosed on the 17th that CEO Min contacted the third largest shareholder of HYBE (5.6% stake) and high-ranking officials of its partner company, Naver, in the process of considering investors to secure management rights.

While the conflict between HYBE and Min led to a legal dispute, members of NewJeans also filed a petition with the court.

The dispute between HYBE and Min reminds us of the "Fifty Fifty Crisist" in that HYBE intervened outside investors after conciliating artists and parents to pursue private interests, as it claims.

🔹 The result in the future

It is up to the court to decide how to dispute between HYBE and Min will be resolved. 

After receiving additional data from both sides by the 24th, the court will decide whether to cute an application for provisional injunction to ban the exercise of voting rights before the shareholders' meeting scheduled for the 31st.

If rejected, HYBE is expected to hold a general shareholders' meeting on the 31st and replace CEO Min and other ADOR executives.

In this case, CEO Min is likely to leave ADOR, and given that NewJeans' parents supported Min and members even filed a petition, NewJeans is also likely to follow Min:s lead.

Then, HYBE's relationship with NewJeans is expected to develop a similar way to the "Fifty Fifty Crisist."

On the other hand, if the court cutes it, representative Min's position will be further strengthened.

This is because various suspicions against CEO Min including the takeover of management rights, and overshadowed, and HYBE is believed to have made excessive attempts to keep CEO Min in check. 

Moreover, CEO Min's actions also gain strength.

CEO Min can continue to remain firmly in her position as the CEO of ADOR of file a lawsuit against HYBE after leaving HYBE with NewJeans.

In response, an industry official said, "The court's judgement will play the most important role in the HYBE and CEO Min conflicts," adding, "It is difficult to predict the outcome easily because the arguments of both sides are sharply divided."

Original article: Segye Ilbo