He said, “I’ve never met an investor.” Min Hee-jin meets Dunamu and Naver and says, “Go ahead and leave.”

Circumstances were revealed that Min Hee-jin, CEO of Adore, contacted Upbit operators Dunamu and Naver and plotted to steal management rights. Naver and Dunamu are known to have admitted that they met with CEO Min in a recent audit conducted by HYBE.

According to multiple media and entertainment sources on the 16th, CEO Min met with Dunamu and Naver officials and made a proposal to acquire Adore. He is known to have made remarks such as ‘Take away Adore’. Dunamu is the third largest shareholder, holding 5.6% of HYBE's 80% stake.

This is in conflict with CEO Min's claim that so far, "I have never met any investor to usurp Adore's management rights. If so, please bring them before me." If Naver and Dunamu officially acknowledge that a meeting to this effect occurred, the suspicion of CEO Min's 'stealing of management rights' will likely have considerable basis. Accordingly, the likelihood that the law will rule in HYBE's favor also increases.

HYBE previously confirmed that CEO Min had accessed and illegally downloaded trade secrets that only HYBE had access to, and began an internal audit on the 22nd of last month. During this process, it was reported that a conversation log containing CEO Min's afterword related to the meeting was discovered on Representative Min's PC.

While the circumstances of CEO Min Hee-jin's lies regarding the takeover of management rights have been revealed, the Civil Settlement Division 50 of the Seoul Central District Court (Chief Judge Kim Sang-hoon) will hold a hearing on the preliminary injunction lawsuit filed by CEO Min Hee-jin against HYBE this morning.

The purpose of this temporary injunction application is to prevent HYBE, which owns 80% of Adore, from voting in favor at the general shareholders' meeting.

In relation to this, Shin & Sejong Law Firm, which acted as legal representative for Min Hee-jin, said, "CEO Hee-jin Min should not exercise her right to vote in favor of the dismissal of CEO Min and executive director against HYBE, using the right to claim performance of the shareholder contract as a protected right. “We have filed an application for a provisional injunction to prohibit the exercise of voting rights,” he said. “We are of the position that HYBE’s claim of breach of trust is absurd, and we have filed an application for a provisional injunction to prohibit the exercise of voting rights in order to protect the corporate value of Adore’s artist (New Genes) and Adore.” It has been revealed.

The issue in this preliminary injunction application is expected to be which of HYBE's rights as a shareholder, the damage it would suffer if CEO Min is dismissed, or which of HYBE's rights as a shareholder is more important.

As the results are usually released within two weeks after the hearing, it is expected that the court decision will be made before the general shareholders' meeting scheduled for the 31st. If the injunction application is rejected, HYBE can end this situation by claiming to exercise shareholders' rights, dismissing Min Hee-jin from the position of CEO, and replacing Adore's management.

On the other hand, if the court upholds the request for a preliminary injunction, HYBE's plans will face a major setback. In this case, HYBE can object to the result of the injunction and receive an appeal, or bring new evidence and reconvene an extraordinary general meeting of shareholders.

Choi Ji-ye, Ten Asia Reporter wisdomart@tenasia.co.kr