HYBE Reportedly Loses Nearly Half A Billion Dollars After NewJeans’ Departure
This article is part of our coverage of HYBE vs. ADOR CEO Min Hee Jin. You can read more and view the entire timeline here.
On November 28, KST, NewJeans held an emergency press conference and confirmed that they would be leaving ADOR, terminating their exclusive contract with the label.
According to reports on November 29, KST, the group’s departure has cost HYBE a whopping $423 million USD.
NewJeans’ departure came after months of escalations between them and their label, as well as conflicts between HYBE and former ADOR CEO Min Hee Jin, who the NewJeans members are still loyal to. The group’s stronghold on the K-Pop market within just a year of its debut had already rendered them one of the primary money-makers of HYBE.
Consequently, the group’s decision to leave the company has sent shockwaves through the K-Pop industry, resulting in a 6.97% plunge in HYBE’s share prices. On the morning of November 29, HYBE stocks were priced at ₩196,000 KRW (about $140 USD), down 6.34% from the previous day. The price went down even further after the opening, to ₩190,000 KRW (about $136 USD), leading to a total loss of $423 million USD in market cap.
While NewJeans has already made it clear that the members want to leave ADOR and continue working with former CEO Min Hee Jin, the label’s current management said they are interested in continuing a dialogue with the group and honoring the contract. Read more about it here.
