NewJeans’ label ADOR replaces CEO Min Hee-jin amid dispute

ADOR, the music label for K-pop girl group NewJeans, announced Tuesday the replacement of its CEO Min Hee-jin following a legal dispute between her and the label’s parent company, Hybe.

Min, however, strongly contested the decision, calling it a “unilateral dismissal” made against her will.

ADOR appointed Kim Ju-young, a member of its board, as the new CEO during a board meeting, which Min attended via video link.

Despite her removal as CEO, Min will continue to serve on the board and produce music for NewJeans, according to the company.

Min, who previously served as a creative director at Hybe’s rival, SM Entertainment, has been credited with the success of the popular K-pop quintet.

She, however, has been embroiled in a dispute with Hybe over allegations that she had plotted to seize control of ADOR and take the girl group with her.

Hybe, which owns 80 percent of ADOR’s shares, previously attempted to remove Min as CEO through a shareholders’ meeting in May amid the strife, but she retained her seat after a local court granted an injunction against Hybe’s plan.

Kim, the newly appointed CEO, is an expert in human resources management with experience from various other industries, including Yuhan-Kimberly and Krafton. She will be responsible for stabilizing the organization and internal restructuring of ADOR, according to the label.

With this change, ADOR has separated production from management.

“The separation of production and management has been a consistent principle of (Hybe’s) multi-label system, applied to all other labels. Until now, ADOR was the only exception where the CEO oversaw both production and management,” the label said.

The replacement came after Hybe put three of its executives on ADOR’s board during the shareholders’ meeting on May 31, taking over control of the board.

Two directors of the label’s board identified as Shin and Kim, who are Min’s close aides, were removed.

The three new directors are its Chief Human Resources Officer Kim, the then Chief Strategy Officer and current CEO Lee Jae-sang, and Chief Financial Officer Lee Kyung-jun.

The label explained that the court’s decision to grant the injunction in May is unrelated to Tuesday’s board decision as it applies only to the May 31 shareholders’ meeting.

The company pledged in a statement to provide full support for NewJeans’ growth and greater success with the personnel change and restructuring.

Despite Min’s removal from her CEO position, the strife is likely to continue as she is strongly opposing the decision.

“(The board) unilaterally voted to dismiss her against her will,” a lawyer for Min told Yonhap News Agency. “This is a grave violation of the shareholders’ agreement,” she claimed, referring to the contract between Hybe and Min guaranteeing the term of her position as ADOR CEO, among others.

“The company stated Min would continue producing music for NewJeans, but this was also not agreed upon,” she said, calling it a “unilateral announcement by the company.”

Hybe, however, has recently notified Min of the termination of their shareholders’ agreement and filed a lawsuit to validate the termination in court.

Should the agreement be dissolved, the 100 billion-won (US$75.1 million) put option previously guaranteed to Min would also be invalidated.