(Bloomberg) — Hybe Co. shares fell Friday as infighting between the K-pop giant and ADOR, the Hybe-owned label behind popular girl group NewJeans, deepened.
Most read on Bloomberg
The company, which manages artists including BTS and Seventeen through more than 10 labels in South Korea and abroad, fell 5.8 percent in early trading in Seoul. In total, 1.2 trillion won ($873 million) in market value has been wiped out since the saga began earlier this week.
On Thursday, Hybe announced that she would report Min Hee-jin, CEO of label ADOR, to Korean police for breach of trust and other related allegations. The parent company said Monday that Min and other ADOR executives were under internal investigation regarding an alleged takeover attempt at the label.
Min held a two-hour press conference on Thursday, denying allegations that she tried to take control of ADOR and accusing Hybe of mismanagement of the label. The event was broadcast live on YouTube and attracted public attention in South Korea.
Following the press, Hybe refuted Min’s arguments and urged Min to resign immediately. An upcoming album from NewJeans – one of Hybe’s most popular bands, whose work Min produces – will be released as planned, Hybe said in a statement Friday.
Hybe owns 80% of ADOR’s shares, while Min owns 18%. The parent company’s investigation is examining allegations that ADOR executives sought to raise new funds to reduce Hybe’s stake in the label and consulted with outside investors and analysts.
“Whether or not his claims are true, suspicions about Hybe’s ability to handle [its] the multi-label system will become dominant,” said Yoon Joonwon, fund manager at DS Asset Management.
Min became CEO of ADOR in 2021 and is recognized for creating NewJeans, an internationally successful five-member group whose projects include collaborations in luxury fashion as well as music. The group is expected to release new songs starting Saturday and will perform at Tokyo Dome in June.
ADOR contributed 5 percent to Hybe’s consolidated sales last year, said Doyoung Ahn, an analyst at Korea Investment & Securities.
–With the help of Youkyung Lee.
(Adds details about Min’s career.)
Most read from Bloomberg Businessweek
©2024 Bloomberg LP
