Jakarta, Indonesia Sentinel — South Korea’s leading entertainment agency, HYBE, has taken a massive financial hit following the sudden disbands of K-pop group NewJeans. The group, which terminated its exclusive contract with ADOR—a HYBE subsidiary—announced its breakup on Thursday November 28, sparking a nearly 7% drop in HYBE’s stock value on Friday November 29, wiping out more than $423 million (Rp6.7 trillion) in market capitalization.
NewJeans debuted in 2022 and quickly rose to prominence as one of K-pop’s brightest stars. By 2024, the group had solidified its global appeal, winning Group of the Year at Billboard’s Women in Music awards.
According to CNBC Indonesia, the announcement of NewJeans’ disbandment stems from months-long management disputes between ADOR and HYBE. In a press conference on Thursday night, the group alleged that ADOR violated their contract, leading to the decision to part ways with the agency.
The conflict tensed two weeks ago when NewJeans issued a legal notice to HYBE. The group reportedly demanded the reinstatement of former ADOR CEO Min Hee-jin, and threatened to terminate their contracts if demands were not met. The letter also outlined demands for addressing over internal HYBE reports alleging plans to sideline NewJeans group to launch a new girl band.
Background of the Dispute
The fallout traces back to April when HYBE launched an internal investigation into former ADOR CEO Min Hee-jin, accusing her of attempting to distance ADOR and NewJeans from the parent company. Min Hee-jin denied the allegations and countered that HYBE had plagiarized NewJeans’ concept for another girl group under a different label.
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Tensions escalated when Min was dismissed as CEO in August, prompting NewJeans to push for her reinstatement. Earlier this month, Min resigned from ADOR entirely, stepping down from her position on its board of directors.
ADOR Responds
Responding to the breakup announcement, ADOR states that NewJeans’ contracts remain valid through July 2029. The agency has pledged to continue managing the group’s affairs, including plans for a fan meet-and-greet in March, a new album release in mid-2025, and a world tour in the latter half of the year.
The disbands announcement of NewJeans give a significant blow to HYBE and its global fans. As the dispute were still on going, the future of NewJeans group and their members remain unclear. Meanwhile, the incident serves as a stark reminder of the complexities and pressures within the competitive world of K-pop management.
(Raidi/Agung)
