Hybe CEO Park Ji-won has been replaced by Chief Strategy Officer (CSO) Lee Jae-sang, just three months after becoming embroiled in a dispute between Hybe and Ador CEO Min Hee-jin.
The controversy began when Hybe launched an internal audit on Min over an alleged attempt at a hostile takeover of Ador on April 22 and Min held a press conference three days later to push back. Park, along with Hybe Chairman Bang Si-hyuk, were the main targets of Min, who blamed Park and Bang for failing to manage the company’s multi-label system and falsely accusing her of breach of trust.
Adopting a multi-label system, as many companies have done, was one of Park’s major accomplishments as a CEO at Hybe. Park's previous role as the CEO of Nexon Korea, a local video game developer, from 2014 to 2018 helped him achieve such a result.
Min further fueled the dispute by revealing a private message from Park, in which she questioned his decision to invest 1 trillion won ($721.29 million) in Ithaca Holdings, deeming it unprofitable. She publicly criticized Park’s global strategy, reportedly causing him considerable stress. Hybe America acquired Ithaca Holdings in 2021, and reported consecutive operating losses of 70.1 billion won in 2022 and 142.4 billion won in 2023.
The Ador CEO claims that Hybe neglects its loss-making subsidiaries, such as Hybe America, while undermining the value of profitable entities like Ador.
“It didn’t look like Park was leaving his position until May when the issue received nationwide attention. There were several news reports about Park being removed due to the dispute, but we were told nothing about it,” an employee at Hybe told The Korea Herald on Thursday, on condition of anonymity.
Many in the music industry observed Park's inadequate response to Min's attacks.
“Hybe didn’t have to release materials refuting every argument that Min raised to turn the table in her favor. At the very least, it should not have released a press statement arguing that Min had invited a shaman to help her manage Ador. This was a childish act. If Hybe had quietly proceeded with legal actions with evidence against Min that it claimed to possess, the company would have at least stayed neutral,” music critic Lim Hee-yun said on Wednesday.
In an email sent to all Hybe staff Wednesday, Park said, “The new leadership and organizational changes have been deliberated and discussed over a long period. Jae-sang Lee, our CSO, is the right person to effectively implement our growth strategies while upholding Hybe's vision, mission and core values.
“For the future of Hybe, I will continue to contribute in areas where I can leverage my expertise and network. I wholeheartedly support the new leadership and these changes," Park added.
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