In a dramatic turn of events, NewJeans announced their departure from ADOR during an emergency press conference on November 28, sending shockwaves through the K-pop industry. This decision not only marked a significant shift for the group but also dealt a staggering financial blow to their parent company, HYBE.

NewJeans’ Exit and Its Ripple Effect

Reports on November 29 revealed that HYBE suffered a $423 million USD loss in market value following NewJeans’ announcement. The group, widely regarded as one of the company’s top revenue drivers, cited loyalty to former ADOR CEO Min Hee Jin as a key reason for their departure.

NewJeans’ decision came after months of escalating tension between the members, ADOR’s current management, and HYBE. Their rapid rise to prominence since debuting in 2022 had positioned them as a cornerstone of HYBE’s success, amplifying the financial and reputational impact of their exit.

Plunge in Stock Prices

The aftermath was immediate in the stock market:

• HYBE’s stock prices fell 6.97% on November 29, opening at ₩196,000 KRW ($140 USD) and later dropping further to ₩190,000 KRW ($136 USD).
• This translated to a total market cap loss of nearly $423 million USD.

HYBE’s Attempt to Reconcile

While NewJeans expressed their intent to continue working with Min Hee Jin outside of ADOR, HYBE’s management has reportedly shown interest in continuing dialogue with the group to honor their existing contract. However, no resolution has been reached yet.

Industry Impact

The departure of such a high-profile group has not only rocked HYBE’s financial standing but has also raised questions about internal dynamics and artist management within K-pop’s corporate structures. For fans and investors alike, the uncertainty surrounding NewJeans’ future adds to the intrigue of this unfolding saga.

What do you think lies ahead for HYBE and NewJeans?

Source: EToday