Highlights
- Court confirms NewJeans’ contract with Hybe sublabel ADOR remains valid
- Hybe’s market value jumps about $644 million after ruling
- Dispute dates back to 2024, involving contract challenges and leadership shake-ups
- NewJeans remains one of K-pop’s biggest global acts
Court decision boosts Hybe shares
South Korean entertainment giant Hybe gained about $644 million in market value on Thursday after a court reportedly upheld the validity of girl group NewJeans’ contract with sublabel ADOR.
Hybe shares climbed as much as 7.12% following the ruling, which confirmed the five-member group remains tied to ADOR until 2029. NewJeans signed the agreement in April 2022.
Background: A dispute with high stakes
The ruling marks a major moment in a year-long legal clash. NewJeans moved to terminate their contract in November 2024, citing alleged breaches by ADOR. That announcement previously wiped roughly $420 million from Hybe’s market cap.
ADOR responded with a lawsuit in December 2024 seeking confirmation that the contract remained binding.
The dispute traces back to April 2024, when Hybe accused then-ADOR CEO Min Hee-jin of attempting to take the sublabel independent. Min denied the allegation and accused Hybe of imitating NewJeans’ creative direction for another group under its umbrella.
Min resigned as ADOR CEO in August 2024 and later stepped down as company director in November.
Impact on Hybe and K-pop landscape
Hybe, which manages major K-pop acts including BTS, Seventeen and LE SSERAFIM, has been under investor watch as the battle unfolded. Thursday’s decision signals stability for the company at a time of intense competition across the industry.
NewJeans debuted in 2022 and quickly became one of K-pop’s top global acts, appearing on 10 Billboard charts, including the Hot 100 and Billboard 200.
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