On May 10 KST, shortly after ADOR's denunciation of the HYBE auditing team for alleged "illegal investigation" practices, HYBE Labels has issued a statement of rebuttal.
The statement read,
"This is a notice from HYBE.
We would like to clarify that the audit which took place on the evening of May 9 KST with a team leader at ADOR occurred with full consent from the auditee, with no pressuring involved.
Below, we would like to provide an explanation for each of the false claims made by CEO Min Hee Jin's side.
▲ On the claims that the duration of the audit continued from 7 PM until past midnight
The team leader who was being investigated came into work at 6 PM that evening. Upon coming in, the team leader was asked to cooperate for the audit which would begin at 7 PM, and the auditee agreed.
▲ On the claims that the auditors followed a female employee home after 10 PM to pressure them for information
During the audit, the team leader admitted that they received large amounts of money and goods from outside businesses for years, under CEO Min Hee Jin's permission. The team leader then expressed their intention to submit their laptop, which was at home, for evidence. As a result, one female member of the auditing team followed the auditee to their home with consent in order to collect the laptop.
▲ On the claims the auditee was forced to sign agreements for the use of their private information
The team leader consented to the use of their private information for the audit, and even submitted their laptop to cooperate with the audit.
▲ On the claims that the auditors tried to confiscate the auditee's personal phone
CEO Min Hee Jin and several employees of ADOR refuse to use the corporate messaging platform used by all HYBE employees and instead use KakaoTalk for all of their business discussions. As a result, the auditing team asked the team leader to submit messages saved on their phone as evidence, but the team leader refused, and the auditors did not press the matter.
▲ On the claims that the contract follows the general conventions of the advertisement industry and cannot serve as evidence for embezzlement
There is no convention in this industry which allows a full-time employee of a company to receive hundreds of millions of won in payments directly from an advertiser. Amounts of money which should have been considered sales were transferred to private accounts, and the fact that the CEO of the company not only knew about this but approved of it for years, this is clearly illegal. Furthermore, CEO Min Hee Jin has made no attempts to retrieve illegally distributed payments nor take follow-up measures regarding the issue. We at HYBE wish to find out where the hundreds of millions of won which this team leader received through illegal means ended up through a thorough follow-up investigation.
We also attach a portion of the conversation which occurred between Min Hee Jin and the management of ADOR regarding this investigation.
Min Hee Jin is all too aware that large amounts of money and goods were embezzled while she turned a blind eye. When the HR department at HYBE inquired of this matter, Min attempted to wave off the matter as unimportant, despite being aware of the gravity of the issue. Then, internally, Min ordered the team leader to cease the embezzlement while blaming HYBE.
It is a great pity that Min Hee Jin's side has once again tried to mislead the public with a statement containing false information. This is also a serious act of defamation.
It is furthermore regretful that Min Hee Jin's side chose to describe the individual who underwent the audit, jeopardizing their identity. Because an employee of ADOR, and not a board member, was subject to this audit, HYBE had no intention of revealing details of this investigation to the public. However, due to Min's statement, the nation is now aware that this employee underwent an audit. If Min Hee Jin had thoughts to protect this employee, she should not have publicized the case.
Finally, we notify that we will take all civil and criminal legal measures possible against this case."
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There is no convention in this industry which allows a full-time employee of a company to receive hundreds of millions of won in payments directly from an advertiser.
I honestly can’t assess this without 1) seeing the contract 2) understanding what financial benefit HYBE otherwise expected to make in this transaction.
Because yes, there ARE scenarios where creatives have quirky contracts that allow for freelancing, even with existing clients (sometimes there are mechanisms that allow the main employer to dodge overtime pay and legal constrictions, so it’s in their interest). But without HYBE outlining what their loss was in this scenario, it’s hard to grasp what’s going on here.
It would also be useful to know what’s in those amended Feb contracts ADOR says they filed that covered this scenario.
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