HYBE seeks investigation into alleged stock trading 'misconduct' by ADOR
The power struggle between HYBE and ADOR CEO Min Hee-jin has now resulted in shareholders facing the consequences. The stock prices for the label led by Bang Si-hyuk plummeted to record lows. Considering this, the label behind BTS is set to petition the Financial Supervisory Service for an investigation into alleged stock trading misconduct by ADOR executives. These violations reportedly involve the spreading of rumors and the use of undisclosed information.
Executives accused of fraudulent transactions
The petition targets many executives, including CEO Min, over allegations of fraudulent transactions aimed at manipulating the stock market. These accusations include spreading false information about artists under HYBE's labels (ILLIT) plagiarizing ADOR's NewJeans. This misinformation reportedly led to a negative impact on stock prices and subsequent investor losses. The investigation was initiated following ADOR's sale of its entire holding of 950 shares of HYBE stock, valued at 200M won, on April 15.
HYBE's stock prices plummeted by 7,700 Korean won
Meanwhile, on Monday (May 13), the same day an email citing NewJeans members's parents' claims about HYBE's alleged misconduct surfaced, the company's stock price plummeted by a reported 7,700 Korean won, reaching the 1,90,000 Korean won range, per All Kpop. This incident followed a previous plunge to 2,40,000 Korean won just 20 days prior. Market experts predict further financial setbacks for HYBE as the conflict involving Min continues.
HYBE accused Min of knowing company's stock price decline
In response, the vice president of ADOR has denied the allegations, asserting that the stock sale was aimed at raising funds for directors' down payments and that there was no underlying motive. Meanwhile, HYBE has requested an investigation into CEO Min, alleging her foreknowledge of the company's stock price decline and collusion to influence public opinion. It is reported that HYBE will present evidence, including chat room discussions, to substantiate these accusations.
Emergency shareholder meeting scheduled amid crisis
In response to these financial troubles, HYBE has requested an emergency shareholder meeting on May 31. The agenda includes the potential dismissal of CEO Min. The company has reportedly appointed new management, along with a new CEO for its subsidiary, ADOR. If the meeting goes in favor of HYBE, a major shakeup for Min is imminent. To note, HYBE owns an 80% majority stake in ADOR.
