New Jeans departure causes BTS’ agency HYBE to lose $423 million
ADOR, the sub-label of the K-pop giant, amid the ongoing drama between HYBE’s executives and Min HeeJin, who was ADOR’s former CEO and the girl group’s creative director.
However, losing New Jeans has proven to be disastrous for HYBE.
HYBE Faces Major Market Setback Following NewJeans' Departure Announcement
HYBE’s market value took a significant hit after news of NewJeans’ alleged departure. Although ADOR, the group’s label, dismissed the announcement as “invalid” and maintained that the girl group lacked any legitimate grounds to terminate their contracts, the parent company—one of South Korea’s leading K-pop agencies, known for managing global sensations like BTS—saw its market capitalization drop by over $423 million on Friday, as reported by CNBC.
For those unfamiliar, the five-member girl group NewJeans, formed in 2022, announced during a press conference late Thursday that they were leaving ADOR, citing a breach of contract by the agency. Group member Hanni stated, “Staying here would be a waste of time and only cause mental anguish.” She added, “There is nothing for us to gain professionally by remaining at ADOR, so the five of us see no reason to stay,” according to a translation by South Korean outlet Yonhap.
Two weeks prior, NewJeans had issued a legal notice to HYBE, outlining several demands, including the reinstatement of former ADOR CEO Min Hee-jin. The group warned that failure to meet these demands would result in contract termination. Reports from JoongAng Ilbo also revealed that the demands
