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After accepting the call and then you 'get kicked in the back'? HYBE controversy this time over late-night audit of ADOR female employees
ADOR "took a fair price for an illegal receipt" vs HYBE "The CEO of ADOR has tolerated illegal activities for years"
HYBE, an entertainment agency that has been in conflict with management over the management rights of its affiliated label ADOR, has revealed that it illegally audited a female stylist belonging to ADOR late at night. HYBE claims that it is a "legitimate audit following legal procedures," but ADOR responded, "They are questioning an industry practice that has already been explained to HYBE as if it were an illegal act."
On the morning of May 10, ADOR issued a statement saying, "The HYBE audit team began an audit of ADOR's style directing team leader at around 7 PM on May 9 after work hours were over," adding, "The audit continued for more than five hours and until the past midnight on the 10th."
He continued, "(The audit team) followed the members' house and conducted an audit beyond the scope of work, requiring not only a laptop but also a personal cell phone that is not owned by the company. We abused the authority of the audit by making a very serious threat, saying, 'If you don't cooperate, you have to go to the police station,' and commit unusual acts that put psychological pressure on our members'.
According to ADOR, the reason for HYBE's audit on this day was that the directing team leader did not receive the amount paid by the advertiser. While HYBE's claim is that it could be a "misdemeanor" if the money was paid through the outside despite being a member of ADOR, ADOR countered that it was not a problem because it did not cause financial damage to the company.
ADOR said, "These contractual relationships are common practice in the industry," adding that "The contents were already shared with HYBE's HR (Human Resources) department and ER (labor management) department in February." Critics point out that HYBE, which had been aware of the problem for at least two months but did not show any particular position, is taking it as an "attack distance" as the dispute over ADOR's management rights began.
ADOR continued, "The cost HYBE raised is not recorded as company sales, but paid to the stylist who performed the job as the cost of the advertiser's use of the outsourced stylist. We deeply regret that HYBE is trying to cover up yesterday's unsavory incident (late-night audit) by turning the legitimate payment into an illegal receipt amount."
In summary, instead of an outsourced stylist, the advertiser entrusted the work of the stylist belonging to ADOR, and paid the stylist for the expenses, so the money was not included in ADOR's sales but became an individual's income. In particular, they added that since they had been in charge of advertising styling work from the inside, not outsourcing until the last, there was no problem that the internal members who had been carrying out the work received the amount paid by advertisers, and after he increase in advertisements by NewJeans, the advertising styling work will be carried out through outsourced personnel from this year, and they also finished consulting with HYBE.
On the other hand, HYBE said, "The team leader admitted that they had received hundreds of millions of won worth of money and valuables from the outsourcing company for years under the approval of Min Heejin, CEO of ADOR. There is no practice in which a company's full-time employee directly takes hundreds of millions of won from advertisers. It is not a practice that the amount that would be recognized as the company's sales is handed over privately, and that the CEO has tolerated it for years, but it is clearly illegal."
He continued, "As CEO, Min has not taken any follow-up measures, including recovery or punishment of illegal receipts. We expect that the investigation will clearly reveal where the hundreds of millions of won (hundreds of thousands of dollars) in unfair profits went, and we will take a civil and criminal measures in the matter," he said. HYBE also released a message in which Min told her aides, "This actually a big problem internally, so it is something we have to deal with it first before being caught by HYBE. There could be an audit issue. It's true."
Regarding the "illegal late-night audit," she said, "With the consent of the auditee, all procedures were legally carried out in an atmospher that was not coercive," adding, "At that time, the team leader expressed his attention to submit his laptop to the company, so only female employees accompanied him into the team leader's house with his consent and the laptop was returned."
When HYBE's position came out, ADOR said, "This issue stems from HYBE's lack of understanding of stylist work and treatment. Core talents in creative fields such as design, choreography, and styling often generate higher profits id they work as freelancers outside of the company than if they belong to the company depending on their capabilities. Therefore, in the actual label business, a flexible compensation system is needed to maintain this capability," and explained, "ADOR has also provided high incentives to talented people as well as stylists based on the philosophy that reasonable compensation is needed for talented people who have produced results."
He then reiterated that representatives of ADOR, deputy representatives, and stylists discussed the receipt of the cost, which HYBE pointed out as "misdemeanor," and decided that it would be better for an internal stylist to work on it, not outsourcing, in terms of efficiency and quality, so that the price was fairly paid by advertisers.
"Yesterday night's situation was that HYBE misled only women as if they had gone home, but with men and women accompanying them to the front of the house, and men guarding the front of the house, the women even came into the house and asked for a mobile phone," adding, "ADOR has clearly expressed its intention to withdraw it through a notice of withdrawal if information provision and use consent as of May 9th. If we distribute false information as well as the contents of KakaoTalk conversations between individuals to the media without permission, we will take active civil and criminal measures against those involved in HYBE," he said.
Meanwhile, ADOR said it held a board meeting earlier in the day and decided to hold an extraordinary shareholders' meeting on the 31st of this month.
Source: Ilyo
