SEOUL, SOUTH KOREA – NOVEMBER 28: Haerin, Danielle, Hanni, Minji and Hyein of girl group NewJeans attend a press conference on November 28, 2024 in Seoul, South Korea. K-pop girl group NewJeans held a press conference to announce the termination of their contract with the agency Ador.
Jung Sung-joon | Getty Images Entertainment | Getty Images
On Friday, South Korea’s largest K-pop agency Hybe lost more than $423 million in market value after the upstart band NewJeans announced its formation. it is terminating the contract With Hybe sub-label ADOR.
The announcement, which comes after a months-long management dispute between ADOR and Hybe, caused the company’s shares to plunge 6.97% on Friday.
The five-piece girl group, which was formed in 2022, said at a press conference late Thursday that it was leaving the agency, claiming ADOR had breached its contract with the band.
“Staying here will be a waste of time and will only cause mental anguish,” said team member Hanney.
“We have nothing to gain professionally by staying here, so the five of us see no reason to stay at ADOR,” one employee said. Translated by Korean media Yonhap News Agency.
Two weeks ago, NewJeans sent Hybe a legal notice outlining a series of demands, including the reinstatement of former ADOR CEO Min Hee-jin, or group members threatened to terminate the contract.
Korean media “Central Daily News” It has also been reported The list of demands included “addressing” an internal Hybe report that said “get rid of NewJeans and start over.”
Haney also said there was “mistreatment not only of us but also of our employees, countless missteps and contradictions, deliberate miscommunication, and manipulation in multiple areas.” She did not elaborate further.
According to reports, Hanny Testify to the Korean Congress In October, she claimed she experienced workplace harassment at the brand.
“This is not a professional ethic that we respect nor want to be a part of, and continuing to work for a company that has no intention of protecting NewJeans will only do us harm,” she said at a news conference.
AprilHybe accused Min Hee-jin, then CEO of ADOR, of trying to make the sub-brand independent.
Minyou Deny the accusation and denounced Hybe, saying they copied the concept of NewJeans and used it in another girl group owned by another subsidiary of Hybe.
mineResigned as CEO of ADOR in August. However, he still serves as a director of the company and resigned from the position on November 20.
The group, which debuted in 2022, has become one of the most popular faces in K-pop and has won numerous accolades at Korean award shows. In 2024, NewJeans also won the Group of the Year Award at the Billboard Women in Music Awards.
Billboard’s quote says The band has charted on 10 Billboard charts including the Billboard Hot 100, Billboard 200 and Billboard Global 200.
Hybe’s net profit dropped nearly 99% annually In the third quarter of 2024, analysts said sales shrank due to limited artists and events during the 2024 Olympics, while profitability was hurt by rising costs as a result of the launch of U.S. localization group KATSEYE
Hybe’s share price has fallen 15.72% so far this year due to the overall downward trend in the industry, with all “big four” K-pop institutions experiencing declines.
