High Drama at HYBE: CEO Min Hee Jin Accused of Embezzlement

During a press conference on the 25th, Min Hee Jin, representing ADOR, addressed her conflicts with Chairman Bang Si Hyuk and the HYBE management team.

Min has raised allegations of HYBE’s management style and plagiarism issues, asserting that HYBE seeks to dismiss her in retaliation.

In response, HYBE dismissed Min’s claims as “too many untruths” and declared a non-response policy. However, shortly afterward, HYBE reported Min Hee Jin to the Yongsan Police Station, accusing her of business embezzlement.

There’s a growing interest surrounding the potential consequences for Min Hee Jin if found guilty and the extent of the punishment.

Previously, HYBE announced that it had detected evidence that Min Hee Jin attempted to usurp management rights without consent.

They revealed Min’s chat records and ADOR’s management, including seeking financial investors by making ADOR a shell company and suggesting selling ADOR to HYBE.

In response, Min refuted at the press conference, “I have never planned, intended, or executed the usurpation of management rights,” and questioned “HYBE’s intention to package casual conversations as serious ones and sell them as frames.”

So, will the charges against Min Hee Jin hold up?

Min could face imprisonment for up to 10 years or a fine of up to 30 million won (approximately $25,000) if proven guilty. Depending on the amount of profit, the Specific Economic Crime Weighted Punishment Act may also apply.

At the press conference, Min’s legal representative contended, “Embezzlement requires the actual execution of an act that diminishes the company’s value, yet no such action has been identified.”

He stressed, “While attempted crimes exist, embezzlement lacks such a provision, even in hypothetical scenarios, but even that must be realistically possible. This case does not even meet that standard.”

In this situation, Min Hee Jin also appears to continue her legal battle.

Just before the press conference, HYBE raised suspicions of shamanistic management, alleging that a shaman had interfered with Min’s actions. According to reports, Min consulted with a shaman about the label name and the enlistment issue of BTS.

In response, Min stated, “I was so tired of HYBE that I thought it would be better for NewJeans to be active without BTS,” and declared, “It’s personal surveillance. I’m going to sue for that.”

Meanwhile, the possibility of Min Hee Jin being dismissed has also been highlighted.

The day after the press conference, HYBE demanded Min’s resignation and requested a board meeting of ADOR on the 30th. The industry predicted that Min would not respond to this board meeting request.

If the board meeting is canceled, HYBE is expected to apply to the court to hold a temporary shareholders’ meeting to dismiss Min.

HYBE’s stock price fell more than 7% in a day when the management dispute was announced on the 22nd, rebounded slightly on the day of the press conference, and was trading at 203,000 won (about $170) at noon on the 26th, down 4.25% from the previous day.