Korean Media Released Min Hee-jin and ADOR Deputy CEO’s Messages: NewJeans Is Worth 1,000 Billion Won+Using Media Play To Go Against HYBE

Korean media outlet TV Daily recently released messages sent in February between Min Hee Jin and ADOR’s Deputy CEO Lee, in which they were plotting to take ADOR from HYBE. In the messages, Lee wrote that their plan must take place before BTS is discharged from the military.

► Using media play

• Lee: We have to do something before BTS comes back in a year.
• MHJ: ㅋㅋㅋㅋ
• Lee: In a year, their illusions about multi-label/US market/IT platform will be shattered is destined to be XX… If we sabotage them, we can gain freedom.
• MHJ: I like that.
• Lee: This is our plan.
• MHJ: So you mean we need to use the media?
• Lee: If HYBE’s chart manipulation is exposed, people will lose faith in them, right? Assuming all these damages were combined, their “wounds” would be very serious.
• MHJ: We need to plan an escape while HYBE burns. Schedule a meeting with Lee XX (media agency), XXX (analyst) introduced me to one of their journalists.
• Lee: Yes, please do so. I will prepare carefully. First, we will become close to them and, like rain, we will quietly build a personal network of accountants, competitors, investors, and outside directors, investment companies and media agencies.
• MHJ: Ok, we should do this personally (not using ADOR’s name).
• Lee: Either way, creating these external alliances while strengthening ADOR’s capabilities internally, is our goal for February.

► Calculate the cost of terminating NewJeans‘ contract, valuing it at more than 1 trillion won

In another conversation that took place in March, Lee and Min Hee Jin discussed negotiating a buyout of NewJeans to make the group independent from HYBE.

• Lee: Any way you look at it, terminating the members’ contracts is too expensive (we will have to leave behind all of the group’s previous albums and advertisements associated with ADOR). But like you said, I think we can use that cost as a negotiating tool. I mean, no matter how high HYBE sets the price, we will refute them that the price is too high and say NewJeans contract termination cost (600 billion won) + New contract cost (100 billion won won) + HYBE’s initial investment of 20 billion won = 720 billion won is enough. I think this way we can settle on a price of around 800 billion won.
• MHJ: No, HYBE will also evaluate the value of future earnings. It’s a relief that Bang Si Hyuk and Park Ji Won’s luck is not so good ㅋㅋㅋㅋ. But that’s why those guys will bid over 1 trillion won. Hey, they paid that money to a company that has nothing [t/n: Ithaca Holdings], do you think they will release NewJeans for 800 billion won? Let’s be a little more realistic, shall we?

► CEO Min wants to become the owner of ADOR

On the same day, Lee asked a private equity fund (PEF) manager about another investment company.

• Lee: Hyung, have you heard about XXX’s investment? XXX is the name of the president of that company.
• PEF: Not yet.
• Lee: I don’t know the name so I guess the company probably isn’t very famous. Thank you.
• PEF: This name seems quite shady.
• Lee: I feel the same way.
• PEF: Hey, I guess they have money. But do they have a lot of money? One thing I’m sure is that that amount of money is not enough to reach an agreement with you.
• Lee: I think so. They nominated themselves ㅋㅋㅋ. A CEO from that company said that G ** investment fund is very interested in the Korean entertainment industry. According to him, finding financial investors will be easier than finding strategic investors. He said it would give us more freedom, then a strategic investor would always seek to influence the company to their benefit whereas a financial investor would not try to influence their interests and the company’s as much as possible. He also said that ideally we should find a financial investor who agrees with the strategy and then leave HYBE before developing the company to exit or do an IPO. I also agree with him. He said leaving the company or terminating (the contract with NewJeans) would not be beneficial. It is not impossible for a person who holds fewer shares, but is the operator of the company, to defeat the parent company and hold a large number of shares to become the actual owner. He said the most important thing is our will to not give up.
• MHJ: Is this person living in the clouds or something?
• Lee: Well, he also said that we need to hide our claws and endure, no matter how difficult it is. I think information plays the most important role.

► Parents of NewJeans should be proactive

In the most recent conversation at the end of March, Min Hee Jin told an ADOR employee that they needed to ask NewJeans’ parents to step forward as “whistleblowers”.

• MHJ: Whistleblower – The parents will be the ones to complain to HYBE.
• ADOR K: Ah, okay.
• MHJ: So what do you think it means when you make an internal complaint?
• ADOR K: At first I wrote the complaint with that in mind. But I’m wondering if it would be better if I gave notice before making internal complaints.
• MHJ: Why?
• ADOR K: As I wrote, I don’t think having parents involved is good for (NewJeans)’s image. Additionally, I feel it would be better to build public support before making complaints public.
• MHJ: Huh? I do not understand. But I think there would be contract issues if the articles were written as if we were behind them. We need to ask the parents to complain first because ADOR cannot attack HYBE.
• ADOR K: I say that because I don’t fully understand our contractual obligations.
• MHJ: That’s understandable because you’re coming from an outsider’s perspective. But if we don’t make an announcement and talk about selling ADOR internally, we will be the ones being sold. We will not be able to control the situation. Do you understand what I’m saying? I don’t know what the point of your suggesting these risks is. Not only that, what risk will we take by revealing this? Whether they investigate or not, everyone will be busy talking about HYBE’s chart manipulation and the world will turn upside down. We better make this public as soon as possible. The most HYBE can do is contact me and negotiate to prevent further controversy. We will then make demands of them.