According to a report by Korea Economic Daily on May 14 KST, HYBE is set to petition the Financial Supervisory Service for an investigation into alleged stock trading misconduct by executives, including Vice President ADOR, amidst a management conflict. The petition specifically cites violations of the Capital Markets Act, including the dissemination of rumors and the use of undisclosed information.
HYBE's petition also targets other ADOR executives, including CEO Min Hee Jin, in light of allegations surrounding fraudulent transactions aimed at manipulating the stock market. The allegations include spreading false information regarding artists under HYBE's labels plagiarizing others, leading to a negative impact on stock prices and subsequent investor losses.
The investigation stems from Vice President ADOR's sale of all 950 shares of HYBE stock, valued at 200 million won, on April 15. This sale occurred just before ADOR's management sent a communication raising suspicions about HYBE's management, which is believed to have been based on undisclosed information. The timing of the sale, coupled with subsequent developments, has raised concerns of insider trading.
In response, Vice President ADOR has refuted the allegations, stating that the stock sale was intended to raise funds for directors' down payments, and that there was no ulterior motive involved.
HYBE has also called for an investigation into CEO Min Hee Jin, alleging that she was aware of the company's stock price decline in advance and conspired to manipulate public opinion. It is reported that HYBE will provide evidence, including chat room discussions, to support these claims during the ADOR audit.
The ongoing conflict between HYBE and CEO Min Hee Jin escalated further when HYBE filed a complaint against her and Vice President Shin for breach of trust. CEO Min Hee Jin has vehemently denied allegations of planning to usurp management rights and has criticized what she perceives as discrimination against NewJeans, a group under her leadership.
With an extraordinary general meeting of shareholders scheduled for May 31, where the dismissal of CEO Min Hee Jin is on the agenda, tensions between the two parties are expected to continue as legal proceedings unfold.
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This "HYBE has also called for an investigation into CEO Min Hee Jin, alleging that she was aware of the company's stock price decline in advance and conspired to manipulate public opinion." Wow! Either MHJ has foresight or the shaman is really effective.
To HYBE: How far will you go with media play? You don't even make sense. LOL!
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