🔗 2024-05-10 HYBE Official Statement (Full Text)

This is an announcement from HYBE.

We would like to inform you that the audit conducted by our audit team on the evening of May 9 regarding a certain team leader at ADOR was carried out lawfully, with all procedures conducted in a non-coercive atmosphere with the auditee’s consent.

We clearly explain below regarding the false claims made by CEO Min Hee-jin’s side.

▲ Regarding the claim that the audit continued from 7 PM past midnight

The team leader in question arrived at work at 6 PM yesterday. Upon receiving contact from the audit team while commuting, the team leader responded that they would be available for the audit starting at 7 PM, and thus the audit began.

▲ Regarding the claim that a female employee was coerced by following her to her home past 10 PM late at night

During the audit process, the team leader admitted to receiving hundreds of millions of won in payments from an outside vendor over several years with CEO Min Hee-jin’s approval. The team leader then expressed willingness to submit their personal laptop, which had been left at home, to the company. Accordingly, with the team leader’s consent, only our female staff member accompanied the team leader inside to their residence, and the laptop was handed over.

▲ Regarding the claim that consent for personal information use was coerced

The team leader, as the auditee, consented to the use of personal information and expressed willingness to cooperate, which led to the submission of the laptop.

▲ Regarding the claim that surrender of personal mobile phone was demanded

CEO Min Hee-jin and some ADOR employees have not used the company’s official work messenger at all and have conducted all work conversations exclusively through KakaoTalk. Therefore, we requested submission of data stored on the mobile phone, but the team leader did not comply, and HYBE’s audit team made no further requests for submission.

▲ Regarding the claim that it is standard advertising industry practice and embezzlement cannot be established

There is no practice where a company’s full-time employee directly receives hundreds of millions of won in profits from advertisers. When amounts that should be recognized as company revenue are privately handed over, and the CEO has knowingly condoned this for years, it is not a practice but clear illegality. Moreover, as CEO, Ms. Min has not taken any follow-up measures such as recovering the illegally received amounts or imposing penalties. We expect that future investigations will clearly reveal where the hundreds of millions of won in unjust profits received by the team leader flowed to.

We are publicly disclosing below, as an attachment, portions of the conversations between CEO Min Hee-jin and ADOR management regarding this matter that were confirmed during the audit process.

Ms. Min is very well aware that substantial payments were received with her tacit approval. When HYBE HR inquired about this matter, Ms. Min, despite knowing the seriousness of the issue, brushed it off as if it were nothing significant. Internally, she is discussing stopping the team leader’s receipt of payments while using HYBE as an excuse.

We express strong regret toward Ms. Min’s side for once again attempting to mislead the public by issuing a statement based on false information. This constitutes serious defamation against the company.

We also express strong regret that the team leader was not protected and was instead identified to the media. This audit was conducted on an ADOR employee who is not an executive, and HYBE had no plans to disclose this matter to the media. However, by issuing her statement, Ms. Min has made the entire nation aware of the audit on the employee. If Ms. Min had any intention of protecting the employee as their superior, this should not have been done.

We inform you that we will take all possible civil and criminal measures regarding this matter.