HYBE Chief Executive Officer (CEO) Lee Jae-sang noted on the 31st that "the results of responding based on principles are emerging" regarding the ongoing ADOR issue that has lasted for about a year.
On the same day, during the regular annual shareholders' meeting held in the Mapo District of Seoul, the CEO responded with this when asked, "What are the governance enhancement measures for HYBE regarding the ADOR issue?"
The CEO mentioned, "I stated at last year's shareholders' meeting that it would take time, but we would respond one by one based on principles," adding, "I believe that the results are starting to come out one by one right now."
He continued, "We are firm in our belief about the value of the multi-label system," explaining that "through creating a multi-label structure and integrating the solution and institutional sector businesses, HYBE could grow to become the fourth largest company in the world by market capitalization, following Universal Music Group, Sony Music Entertainment, and Warner Music Group. I think there were various trials and errors and difficulties during that process, and we are correcting them."
Recently, ADOR, the label under HYBE, received a court decision that granted a preliminary injunction banning the exclusive activities of its girl group NewJeans, with the main lawsuit concerning the 'validity of the exclusive contract' set for its first hearing on the 3rd of next month.
Regarding the representative artist BTS, whose members will all be discharged in June, he said that time is needed to fully resume activities.
The CEO noted, "BTS members are scheduled to complete their military service by the end of the first half of this year and return, so time is needed for preparations and work for activities after their return," emphasizing, "The company is also preparing by discussing with top-tier composers, but the artists (BTS members) need time for reflection and preparation."
He added, "Typically, the order of events is to work on songs, release albums, and then conduct tours, but since BTS members have already made the leap to become global top artists, it is necessary to continue discussions regarding vision and the 'next' and to consider this direction as we adapt."