HYBE is reportedly facing a major setback after the popular girl group, who were at the peak of their career, announced their exit from the agency. Citing a breach of contract, all five members of NewJeans—Minji, Hanni, Danielle, Haerin, and Hyein—held an emergency press conference, sharing details about their next steps, prompting a fiery response from ADOR. Now, according to reports, the Bang Si Hyuk-led company’s shares plunged by as much as 6.97% on Friday.
HYBE’s value plummets after NewJeans’ exit
Despite ADOR dismissing the exit announcement as ‘invalid’ and asserting that the girl group ‘had no valid reason to end their contracts,’ HYBE, the parent company and one of South Korea’s largest K-pop agencies behind groups like BTS, lost over $423 million in market cap on Friday, according to CNBC.
Also read: Members of K-pop group NewJeans say they are leaving agency after dispute
The ongoing feud between ADOR’s former CEO Min Hee Jin and music mogul Bang Si Hyuk, which centered on the management of the girl group and had been escalating for months, led to the members’ abrupt exit and caused the company’s shares to plunge by as much as 6.97% on Friday.
The girl group, known for representing major global brands like Gucci, CK, and LV, rose to success faster than many of their 4th-gen K-pop peers. Although the group debuted at the tail end of the generation, their innovative style and music-making played a key role in their rapid rise. The members credited their former CEO, Min Hee Jin, for much of their success and requested her return to the role as part of their terms outlined in a legal notice to HYBE. However, Min Hee Jin officially resigned on November 20.
NewJeans announces exit
“Staying here would be a waste of time and would only bring mental pain,” Hanni said during the conference after the group accused ADOR of lacking both the will and the ability to protect NewJeans. “There is nothing we can gain professionally from staying here, so the five of us see no reason to remain at ADOR,” according to South Korean media outlet Yonhap.
The group earlier, sent a legal notice to HYBE, outlining five demands. this includes an “apology for bullying allegations against….Read More
Hybe’s third-quarter 2024 net profit saw a dramatic 99% year-over-year decrease, CNBC reports. Analysts point to two main causes: lower sales resulting from limited artist activities during the Olympics and higher expenses linked to the launch of KATSEYE. This negative trend is consistent with the broader K-pop industry, where all four major agencies have seen their stock prices decline.