Min Heejin extends her hand, HYBE remains silent... The ending of 'Uncomfortable Cohabitation'

 June 9th, 2004

Min Heejin, CEO of ADOR, proposes reconciliation to HYBE at the 2nd press conference,

"Think long-term and let's endure even if it hurts"... Will CEO Min's proposal come true?

Will there be a dramatic reconciliation between Min Heejin, CEO of ADOR, and HYBE, the parent company, which started 'uncomfotable cohabitation'? While internal strife that left deep scars on both sides has continued for more than a month, CEO Min has publicly signaled reconciliation to HYBE. What will be the end of the conflict between Min and HYBE, which has now escalated into a legal battle.

Representative Min reached out to HYBE at a press conference related to the extraordinary shareholders' meeting held on the 31st of last month. She says, "Shouldn't we put down the emotional part and think in a good way for the sake of representtion?"

The reconciliation proposal is interpreted as a solution Min, who avoided dismissal due to the earlier request for a provisional injunction to ban the exercise of voting rights against HYBE, but became a 'lonely island' as a new in-house director recommended by HYBE was appointed after two existing in-house directors were dismissed. In fact, she avoided injunction, but HYBE can hold a board meeting of directors of ADOR to push for Min's dismissal again, and HYBE also said they would continue the legal follow-up process, so it is still difficult for Min to be relieved of her preservation.

In the midst of the more than month-long conflict with HYBE, Min made a gesture of reconciliation first, expressing her willingness to come up with a compromise, saying, "To be honest, I don't know for whom this dispute is for and what it is for. Aren't you tired of criticizing and slandering someone? I hope everyone thinks about which one is more beneficial and chooses a better direction."

The core of the agreement announced by CEO Min is the revision of the anti-competition clause in the shareholder contract, which she previously described as a 'slave contract'. She put forward the condition that "If the toxic clause on the anti-competition agreement is eliminated, I will give up the part that I can give up." Earlier, CEO Min consistently instead on the irrationality of the shareholder contract signed with HYBE, and CEO Min's legal representative pointed out the problem of the contract, saying, "The contract is terminated only when when they no longer holds the shares issued currently held are permanently banned from competition unless HYBE agrees to the transfer of their shares."

However, it is still unclear whether HYBE, who has remained silent since Min's announcement of thier position, will accept the proposal. It is because it is unclear whether HYBE will sit at the negotiating table with Min again in the current situation, where the conflict is at its peak, as Min has consistently refuted the problem of the prohibition of competition in the contract between shareholders, which has been a problem saying, "It is not true," and claimed that she has already conveyed his intention to revise the clause in December last year. In addition, as HYBE sees the core of the situation as Min's breach of trust, such as plotting to steal management rights, it is also unlikely that Min, who remains likely to face further disputes over management rights in the future, will agree to maintain her position as before.

Of course, it is difficult to rule out the possibility that HYBE will accept a new phase conscious of the worsening public opinion. Analysts say that the company may try to deal with the situation by accepting CEO Min's proposal in consideration of public opinion at a time when the image of artists and companies belonging to HYBE has been greatly damaged during the dispute, and the refutation of NewJeans fans is also severe. However, it will take some time in that negotiations between the two sides of accompany them will take place once again, and a compromise must be prepared at a level that both sides can understand.

Original article: Hankook Ilbo