As HYBE intensifies efforts to dismiss ADOR CEO Min Hee-jin, key executives from HYBE, including CSO Lee Jae-sang, are being considered as likely candidates for ADOR’s new board of directors
According to the investment banking (IB) industry on May 22nd, HYBE CSO Lee Jae-sang, CHRO Kim Joo-young and CFO Lee Kyung-jun are prominent candidates expected to join ADOR’s new board of directors at the upcoming extraordinary shareholders’ meeting on May 31st.
The agenda for ADOR’s extraordinary shareholders’ meeting includes two main points: the dismissal of three current board members, including CEO Min Hee-jin, and the appointment of three new board members. Consequently, HYBE has been evaluating potential candidates for ADOR’s board in advance.
Among the executives mentioned as potential new board members, CSO Lee Jae-sang is the leading candidate for the “new CEO” position at ADOR. Lee was previously proposed by HYBE as a board candidate for SM Entertainment during HYBE’s acquisition attempt. At that time, Lee, then head of HYBE America, was considered to take on the role of new CEO if HYBE acquired SM. Lee emphasized the importance of reviewing SM’s existing strategies and implementing HYBE’s business model for success.
CHRO Kim Joo-young, who was the first female HR team leader at Yuhan-Kimberly and later joined HYBE from Krafton, is an HR expert. CFO Lee Kyung-jun has experience with accounting at Samil PwC, PwC Sydney and Kim & Chang, and played a crucial role in HYBE’s KOSPI listing. CFO Lee Kyung-jun also serves as an internal director at HYBE’s subsidiary Source Music.
These HYBE executives were rumored to be candidates for ADOR’s board from the early stages of the current situation.
Other potential candidates for ADOR’s new board include HYBE CLO Jung Jin-soo and Head of Management Planning Lee Jin-hwa. They were also proposed as new board candidates for SM Entertainment during the acquisition attempt.
If Min Hee-jin’s injunction to prohibit the exercise of voting rights against HYBE is granted by the court, two out of the three current ADOR board members will be dismissed and replaced. This would allow HYBE to dominate the board, enabling them to pass a resolution to dismiss Min Hee-jin as CEO. However, Min Hee-jin could potentially sue HYBE for breaching the shareholder agreement.
HYBE plans to restructure ADOR into a dual system with separate production and management heads, as is the case with other HYBE labels except ADOR, where Min Hee-jin currently holds both roles.
A high-ranking HYBE official stated, “We have no official plans to announce regarding the appointment of new directors at ADOR’s extraordinary shareholders’ meeting on May 31st. However, having experts focus on their respective areas of production and management increases overall efficiency. Problems can arise when one person handles both roles.” Consequently, HYBE might scout a new person for the production role after the board reshuffle.
The court’s decision on the injunction will significantly impact the future structure of ADOR.
Many ADOR team leaders have submitted petitions supporting Min Hee-jin in the injunction request. Additionally, the members of ADOR’s only idol group NewJeans and their parents have also submitted petitions in support of Min Hee-jin.
If Min Hee-jin and the current ADOR board are replaced with HYBE personnel, many ADOR employees might resign. HYBE stated, “Only those directly responsible for seizing management rights will be asked to leave. The rest are not at fault.”
If many ADOR employees resign, other HYBE labels like Pledis or Belift Lab might temporarily take over NewJeans’ activities. In fact, HYBE CEO Park Ji-won assured three NewJeans members’ mothers during a meeting on April 25th that HYBE professionals would handle NewJeans’ Tokyo Dome preparations, despite Min Hee-jin not sharing
