HYBE, the powerhouse behind global K-pop sensation BTS, saw its shares climb nearly 5% on Wednesday (August 28, 2024), following the unexpected resignation of Min Hee-jin, the former CEO of its sub-label ADOR.
The stock’s rally added approximately 376.02 billion won ($282.05 million/Php 15,825,165,824.48) to the company’s market valuation, underscoring investor sensitivity to the ongoing leadership drama within the company.
Min Hee-Jin, who played a pivotal role in steering ADOR and the breakout success of the girl group NewJeans, was said to have stepped down from her CEO role late Tuesday, though she will remain with the company as an internal director, continuing to produce content for NewJeans. ADOR’s chief human resources officer, Ju Young Kim, has been tapped as her successor to serve as the new CEO of ADOR.
Yet despite the official announcement, numerous South Korean media outlets have reported that Min Hee-Jin claimed her departure as CEO was “illegal” and “unilateral,” further intensifying the narrative around the internal conflicts within HYBE. Min Hee-Jin also noted that she was not consulted about staying on to produce content for NewJeans, raising questions about the future direction of the group.
The shakeup is the latest chapter in a contentious battle that has seen HYBE file a police report against Min earlier this April, accusing her of attempting to take ADOR to become an independent subsidiary. Min retaliated by accusing HYBE of appropriating NewJeans’ concept for another girl group under a different subsidiary of the company.
The situation escalated in May this year when HYBE called an extraordinary general meeting to remove Min as CEO — a move that was temporarily blocked by the Seoul Central District Court, which granted Min an injunction preventing the K-pop giant from exercising its voting rights in the meeting.
The ongoing management dispute casts a shadow over HYBE’s otherwise dominant position in the K-pop industry, as the company navigates turbulent waters. Just recently, the company also saw a major change in its leadership, with longtime CEO Park Ji Won stepping down from his position. Park also announced that Lee Jae-Sang, the current Chief Strategy Officer, has been preparing to take the helm as the new CEO. HYBE praised Lee’s extensive experience in strategic planning and operations, both domestically and internationally.