UPDATE: "WE NEED TO DO SOMETHING BEFORE BTS RETURNS FROM MILITARY." - MHJ

EDITS: Edits in the translation are bolded and underlined. My friends my tone is too "soft". As you know, the Korean language is very contextual. Their tone is much harsher.

TV Daily obtained text messages between Adore CEO Min Hee-jin, Vice President Lee, and key ADOR executives. The texts between CEO Min and Deputy CEO Lee were reconstructed, focusing on the conflict over management rights between HYBE and ADOR.

SOURCE: https://www.tvdaily.co.kr/read.php3?aid=17167770001711839010

TRANSLATION OF THE KAKAO EXCHANGE

Lee: We have to make our move before BTS returns in a year.

MHJ: Lol.

Lee: In a year their multi-label/US illusion/IT platform illusions will all go to s*it as it is meant to be… They will struggle and we earn our freedom.

MHJ: I would love that.

Lee: This is our plan.

MHJ: So you’re saying we need to use the media, ugh.

Lee: If HYBE’s album push [advance purchase] is exposed then people will not trust them, right? If these damages add up, they [the public] will lost more trust in them. 

MHJ: We need to plan our escape while HYBE is under fire. Let’s meet Lee XX (media outlet), XXX (analyst) introduced me to one of their journalists.

Lee: Yeah, let’s do that. I’ll prepare carefully. First, we’ll become close to them and like drizzle falling on clothes [to be done slowly that you don't notice, just like how you don't notice your clothes getting soaked when there is drizzle because it happens slowly], we’ll quietly build a personal network of accountants, competitors, investors, outside directors, investment firms and media outlets.

MHJ: Yeah, we should do this personally (not using ADOR’s name).

Lee: Building our personal network while bolstering the capabilities [setting up the system of ADOR to their favor] of ADOR internally is our goal for February.

In another conversation, which took place in March, executive Lee and Min Hee Jin could be seen talking about negotiating a buyout for NewJeans. 

Lee: No matter how I look at it, terminating the members’ contracts is too costly. (We would have to leave behind all of their past albums and all the endorsements are tied to ADOR). But like you said, I think we can use that cost as a negotiating tool. What I mean is, no matter how high HYBE sets the price, we would tell them the price is too high and say that the costs of terminating their contract (₩600 billion KRW (about $439 million USD)) + cost of new contracts (₩100 billion KRW (about $73.2 million USD) + HYBE’s initial investment ₩20.0 billion KRW (about $14.6 million USD)) = ₩720 billion KRW (about $527 million USD) should be enough. I think this way we could meet at a price of ₩800 billion KRW (about $585 million USD).

MHJ: No, HYBE will also put a value on future earnings. It’s a relief that Bang Si Hyuk and Park Ji Won’s luck is horrible, lol. But that is why they will ask for over ₩1.00 trillion KRW (about $732 million USD). Hey they paid that much for a company that had nothing, do you think they’ll hand over NewJeans for ₩800 billion KRW (about $585 million USD)? Do you know what you’re talking about?

In another exchange, LEE was texting with an investor.

Lee: Hyung, have you heard of XXX investments? XXX is the name of its president.

PEF: No.

Lee: I guess it’s not well-known if you don’t know them. Thank you.

PEF: The name seems pretty shady.

Lee: I agree.

PEF: He may have money but the question is 'does he have a lot of money'? Although I’m sure it isn’t enough to make the deal with you.

Lee: I think so. He recommended himself, lol. He said that an investment fund G** wants to get into Korean entertainment. According to him, it is going to be easier to find a financial investor than a strategic investor. He also said it will give us more freedom. He says a strategic investor will always look to influence the company to their gain while a financial investor will not try to influence as much as theirs and the company interests align. He says ideally we should find a financial investor that agrees with our strategy and then leave HYBE before growing the company to exit or do an IPO. I agree with him. He says leaving the company or terminating (NewJeans’s contract) won’t be a good move. He also said that it isn’t impossible for a minority stake holder, who runs the company, to prevail over the parent company and majority stake holder to become the defacto owners. He says the most important thing is our will to not lose.

MHJ: That person seems to be in a cloud of hope (not very realistic).

Lee: Well, he also said that we need to hide our claws and fight, no matter how hard it gets. I thought the information was most important.

In another text exchange, MHJ discusses going public with HYBE album push [advance purchase] to turn public opinion against HYBE.

MHJ: Whistleblower – The parents should be the ones making the complaint to HYBE.

ADOR K: Ah, okay.

MHJ: Then why did you propose to make an internal complaint?

ADOR K: At first, I wrote it with this in mind. But I thought it would be better to leak it to the media before the internal complaint was made.

MHK: Why?

ADOR K: As I had written, I don’t think it would be good for (NewJeans’) image for their parents to get involved. Also, I felt it would be better to create public support before making the complaints public.

MHJ: Huh? I don’t understand. Also, I think there are contractual issues if the articles are written as if they were from us. We need to have the parents make the complaints first because ADOR can’t attack HYBE.

ADOR K: I may have said that without understanding our contractual obligations.

MHJ: I understand because you’re watching from an outsider’s point of view. But if we don’t make the announcement and we talk about selling ADOR internally, we are part of what’s getting sold. We won’t be able to take control. Do you get what I am saying? I don't know what is the consequence of the risks you are talking about. Also, what risk do we have by taking this public? Whether they investigate or not, by then everyone will be talking about HYBE’s album push [advance purchase], and the world would turn on them. It’s better that we make this public as soon as possible. It is better for HYBE to reach out to me and negotiate to block the controversy. Then we can make our demands.

TRANSLATION OF TV DAILY ARTICLE

TV Daily obtained text messages between ADOR CEO Min Hee-jin, Vice President Lee, and key ADOR executives. The texts exchanged between CEO Min and Vice President Lee were reconstructed, highlighting the conflict over management rights between HYBE and Adore.

“If you make things difficult for HYBE, ADOR will be free.”

“BTS’ discharge from military service is important.”

“In the end, we have to use the media.”

In February, Vice President Lee, who is considered CEO Min’s right-hand man, announced that ADOR’s primary goal needs to happen before the discharge of all BTS members from military service. He laid out a yearly plan with the aim of ADOR gaining independence. Vice President Lee told CEO Min that they should create difficulties for HYBE to ensure ADOR's freedom. They criticized HYBE's multi-label system and the misconceptions about its IT business, expressing dissatisfaction with HYBE's management style and planning to formalize their grievances.

On the same day, the conversation continued with CEO Min providing instructions regarding Vice President Lee’s ideas. The strategy included using the media, despite CEO Min’s previous disdain for media manipulation.

At a press conference earlier this month, CEO Min, who had criticized HYBE's 'advance order'. She worked with Vice President Lee to devise a public agenda aimed at media criticism of HYBE. CEO Min viewed this period as an opportune time to make ADOR independent. They even shared names of media outlets and reporters who would be mobilized for the 'advance order' campaign via text messages. One particular reporter, known for writing articles critical of HYBE, was mentioned, having been introduced by an analyst who reviewed Vice President Lee's documents discovered during HYBE's audit.

“The value of NewJeans will be 1 trillion won.”

On March 14, their conversation moved to the implementation stage. CEO Min and Vice President Lee met with an investor before. The condition for investors was that all NewJeans members must be brought out of HYBE before any investment could occur. The next day, CEO Min and Vice President Lee calculated the potential damages if NewJeans were taken out of HYBE.

As CEO Min said, all their conversations could be seen as 'colleagues’ sad remarks and jokes.' However, it is clear that their plan went beyond text and was put into action. On March 18, Vice President Lee informed the representative of a private equity fund management company that an investor willing to invest in ADOR had been secured. The Chairman of ***Finance was considered the ‘new Zhenju.’

Making the plan a reality was challenging. After several reviews, they decided it would not be easy to take NewJeans out of HYBE. CEO Min and her associates, including Vice President Lee, planned to utilize ADOR's shares. This would allow minority shareholders to become the actual owners of ADOR. CEO Min owns 18% of ADOR's shares, and the remaining 2% is held by executives close to her, including Vice President Lee.

At a press conference, CEO Min stated, “It is impossible to aim to usurp management rights from HYBE, which owns 80% of ADOR’s shares.” However, CEO Min harbored that impossible dream. She responded that they were just "hoping" but not putting it into action. Vice President Lee's once said that "It is not unheard of in the capital market for a minority shareholder, who actually runs the company, to break through the checks of the majority shareholder's parent company and establish himself as the actual owner of the company."