NewJeans’ Potential Departure from ADOR Could Result in Billion-Dollar Losses for HYBE

Amid the ongoing dispute between HYBE and its former ADOR CEO, Min Hee-jin, South Korean investment firm NH Investment & Securities has reduced the target share price for the company. The stock price was cut by 4 percent due to the uncertainty surrounding the future of NewJeans, a rapidly rising K-pop group under ADOR.

The postponement of the girl group’s anticipated full-length album release, initially scheduled for late 2024, along with their 2025 world tour, has been omitted from financial forecasts. This previously projected income was expected to generate over 35 billion won (approximately $27 million) in operating profit for HYBE.

Additionally, NH Investment indicated that a resolution to the current conflict would enhance the label’s long-term performance, whereas ongoing tensions could significantly hinder the company’s stock value and profitability.

The report also highlighted alternative revenue sources, such as Weverse, the fan engagement platform, and the anticipated return of BTS in 2025 following their military service. This resurgence could potentially mitigate the projected losses stemming from the uncertain future of NewJeans. However, the lack of clarity surrounding NewJeans’ position in HYBE’s lineup continues to cast a shadow over the entertainment conglomerate’s forecast.

NewJeans Fans Consider Legal Action Against HYBE Amid Management Crisis

In the meantime, fans of NewJeans have expressed their dissatisfaction with the parent company, accusing HYBE of orchestrating a damaging media campaign against the group. They have warned of potential legal action, including allegations of embezzlement and breach of fiduciary duty, if their grievances remain unresolved.

The controversy ignited when a former journalist disclosed a recording during a radio broadcast, where a HYBE representative supposedly made negative comments regarding NewJeans’ performance in Japan. The label promptly denied these allegations and stated its intention to pursue legal remedies, asserting that the recording was distributed without consent.

The fanbase, consisting of about 5,000 supporters, has mounted an official protest against the company, insisting it uphold the group’s reputation and restore Min Hee-jin as CEO of ADOR.

They contend that Min’s dismissal has resulted in notable financial setbacks, including the cancellation of events and album releases, potentially costing billions of won. Fans are calling for immediate corrective actions, cautioning that they will proceed with lawsuits if both HYBE and ADOR leadership do not respond promptly.

The ongoing legal dispute between the label and Min Hee-jin, who was ousted from her role as CEO at ADOR in August, has already led to disruptions in NewJeans’ activities, including the cancellation of fan gatherings and a halt in music production.

The tension escalated further when the girl group called for Min’s reinstatement as CEO during a live stream in September, to which the label firmly replied that Min’s return was “not acceptable.”

While it is still unclear whether NewJeans will sever ties with the label, no official announcements have been made by either party, leaving fans anxiously awaiting a resolution.

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