Bang Si Hyuk's thoughts on HYBE's internal conflict: ”One person's malice should not damage the system”

HYBE Chairman Bang Si Hyuk revealed his feelings on the situation of the management dispute with ADOR's representative Min Hee-jin.

On the 17th, HYBE's legal representatives disclosed some contents of the petition prepared by Chairman Pan at the hearing of Representative Min's provisional injunction lawsuit against HYBE held at the 50th Civil Division of the Seoul Central District Court.

Through the petition, Chairperson Bang commented on Min Hee Jin's actions, saying, "I am aware that some people see the problems with multi-labels as having been revealed. However, no amount of elaborate systems or thorough contracts can completely prevent human malice" and that "the malicious actions of one person should not damage a system that many people have built for a long time. The underlying strength of our social system is to prevent individual malice and misdeeds from disrupting social institutions and order."

He continued, "I am looking at this incident from the tragic and urgent perspective of establishing the right rules and precedents for the entire K-pop industry, in addition to my entrepreneurial vocation to build a better creative environment and system, and as an industry leader, I am making every effort to rectify the situation with conviction and devotion."

Chairman Bang added, "As an entertainment company that must convey fun, I am very sorry for the concern this incident has caused to various members of our society and the public, and I hope that this kind of authenticity will be conveyed and that the court will make a wise decision to dismiss this application for a provisional injunction. We hope that the court will make a sensible decision to dismiss the application for a provisional injunction."

On the other hand, on the same day, the representative of Representative Min's side stated, "Under the contract between the shareholders, it is clearly stipulated that HYBE must exercise its voting rights on the shares it holds at the ADOR shareholders' meeting so that Representative Min can maintain his position as ADOR's representative director and in-house director for five years, and Representative Min has not committed any acts that fall under the grounds for his dismissal", Min argued that it was necessary to cite the application for a provisional injunction, claiming that "she did not do any act that falls under the grounds for her dismissal."

On the other hand, HYBE's representative stated that "under the Commercial Code, the dismissal of a director during their term of office is possible at any time by a special resolution of the general meeting of shareholders, regardless of whether or not there is a reason for dismissal. In addition, the resignation can be demanded when there are serious disqualifications in the performance of duties in the event of serious breaches of the shareholders' agreement or illegal acts such as breach of trust and embezzlement", and countered that "Representative Min has seriously breached the shareholders' agreement through countless fraudulent and illegal acts, so the application for provisional disposition must be dismissed."

An extraordinary general meeting of ADOR shareholders to deal with the dismissal of Representative Min will be held on the 31st. If the court rejects the dismissal without accepting the claims of Representative Min, HYBE, which owns 80% of ADOR, is expected to replace the ADOR management team and speed up the process of resolving the situation. On the other hand, if the court cites the application for a provisional injunction, HYBE's plans will be hindered and the dispute is expected to enter a prolonged phase.

The court concluded the hearing saying "A decision must be reached before the extraordinary general meeting of shareholders scheduled to be held on 31st. If both parties submit the necessary written materials by the 24th, we will examine them and try to reach a decision", the court concluded the hearing.