World Courant
SEOUL, SOUTH KOREA – NOVEMBER 28: Haerin, Danielle, Hanni, Minji and Hyein of lady group NewJeans attend the press convention on November 28, 2024 in Seoul, South Korea. Okay-pop lady group NewJeans makes an announcement at a press convention in regards to the termination of their contract with their company Ador.
Chung Sung-jun | Getty Pictures Leisure | Getty Pictures
South Korea’s largest Okay-pop company Hybe misplaced greater than $423 million in market capitalization on Friday after rookie group NewJeans introduced it terminated his contract with Hybe sublabel ADOR.
The announcement, which follows a months-long administration dispute between ADOR and Hybe, despatched the corporate’s shares plunging as a lot as 6.97% on Friday.
The five-member lady group, shaped in 2022, stated at a press convention late Thursday that they have been leaving the company, claiming that ADOR had violated its contract with the band.
“Staying right here can be a waste of time and would solely trigger psychological ache,” stated group member Hanni.
“There’s nothing we will acquire professionally by staying right here, so the 5 of us see no cause to stick with ADOR,” stated one translation by South Korean media firm Yonhap.
Two weeks in the past, NewJeans had despatched a authorized discover to Hybe with an inventory of calls for, together with the reinstatement of ADOR’s former CEO Min Hee-jin. Failing that, the group members threatened to terminate their contracts.
South Korean media outlet JoongAng Ilbo had additionally reported that the checklist of calls for included “dealing with” an inner Hybe report stating that “NewJeans ought to be thrown out and began over.”
Hanni additionally stated there was “not solely mistreatment in the direction of us, but in addition in the direction of our employees, quite a few preemptions and contradictions, deliberate miscommunication and manipulation in a number of areas.” She did not elaborate additional.
Hanni allegedly did that testified earlier than the South Korean parliament in October, she claimed she had suffered office harassment on the label.
“This isn’t the form of work ethic we respect or need to be part of, and persevering with to work below an organization with no intention of defending NewJeans would solely hurt us,” she stated on the information convention.
In April, Hybe accused then-ADOR CEO Min Hee-jin of making an attempt to make the sub-label unbiased.
Min had denied the allegations and lambasted Hybe, saying that they copied NewJeans’ idea to make use of in one other lady band below one other Hybe subsidiary.
Min stepped down as CEO of ADOR in August, however remained director of the corporate earlier than resigning from that place on November 20.
The group has turn into one in every of Okay-Pop’s hottest faces when it debuted in 2022, successful quite a few accolades at South Korean award reveals. In 2024, NewJeans had additionally received the Group of the Yr Award at Billboard’s Girls in Music ceremony.
The quote from Billboard stated the group scored entries on 10 Billboard charts, together with the Billboard Sizzling 100, Billboard 200 and Billboard World 200.
Hybe’s web revenue fell almost 99% year-on-year within the third quarter of 2024, with analysts saying income shrank attributable to restricted artists and actions throughout the 2024 Olympics, whereas profitability was additionally harm by larger prices as a result of launch of KATSEYE, a localized group within the US
Hybe shares have misplaced 15.72% to date this 12 months, amid a broader downturn within the sector, with all of the ‘Massive 4’ Okay-pop businesses seeing shares fall.
Hybe will lose greater than $420 million in worth after NewJeans pronounces contract termination
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