HYBE conflict vs NewJeans label set to escalate into legal battle

HYBE Co., the company behind boy band BTS, has reported Min Hee-jin, the chief of popular girl group NewJeans’ label ADOR, to police for investigations over her alleged coup attempt, heralding the launch of a legal battle between the K-pop powerhouse and one of its high-performing labels.

HYBE said on Thursday it has confirmed Min's attempt to depart from the parent company with ADOR and its most famous group NewJeans. It said it secured physical evidence of the attempted coup after an internal audit.

The move comes as HYBE, led by K-pop’s most influential producer Bang Si-hyuk, is seeking to fire Min at a board meeting on April 30, arguing that her alleged move constitutes a breach of trust, which she has flatly denied.
 
The K-pop behemoth argued that Min had ordered ADOR’s management to draw up measures to force HYBE to sell its 80% stake in ADOR. Min holds an 18% stake in the label.

Min strongly refuted the allegations in an abruptly convened news conference on Thursday, saying in tears that she had never considered taking over ADOR.

"HYBE has twisted my private conversations and I have not done anything to damage the company's value," she said, furiously.

She revealed on a big screen a string of text messages she exchanged with HYBE Chief Executive Park Ji-won and its Chairman Bang.

The director and producer of NewJeans argued that a few of her private conversations, the suspected proof of her plotting an independence move, were just private grumbling about the company. 

Her legal representative said she had never attempted nor executed any action that represented a breach of trust.

On Monday, Min told The Korea Economic Daily in an interview that HYBE suspended her from her job and said it would take steps to fire her.

Min said her dispute with HYBE originally stemmed from another HYBE label’s alleged plagiarism in directing and producing a new girl group.

She noted her contribution to ADOR, which has grown into a big money spinner of HYBE thanks to the global success of NewJeans. 

HYBE did not respond to her arguments.

It will hold a board meeting on April 30 in an attempt to fire Min, where she is not expected to attend.

If the board meeting fails, HYBE will call an extraordinary shareholders' meeting upon court approval, to vote on her dismissal. It will take about two months to finish the process.

Entertainment industry observers said the conflict between HYBE and Min would escalate into a full-scale legal battle.

It also revealed the challenge facing the K-pop industry's multi-label system, under which labels for each idol group work to maintain the identity and creativity of their artists. However, such a structure can lead to competition and power struggles within the company.

Write to Ji-Eun Ha at hazzys@hankyung.com
Yeonhee Kim edited this article.