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In light of the ongoing conflict between HYBE and former ADOR CEO Min Hee-jin, South Korean securities firm NH Investment & Securities has downgraded the company's target share price. The company slashed the stock price by 4 percent, citing the uncertain future of NewJeans, a rising K-pop group under ADOR.
The absence of the girl group's planned full-length album release in late 2024 and their 2025 world tour was excluded from financial projections, which had previously been estimated to contribute over 35 billion won ($27 million) in operating profit for HYBE.
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NH Investment further noted that resolving the conflict would stabilize the label's performance in the long term while continuing tensions might severely impact the company’s stock and earnings.
Additionally, the firm's report emphasized other revenue drivers, including Weverse, the fan interaction platform, and the anticipated return of BTS in 2025 after completing their military service, which could offset the potential shortfall from NewJeans. However, for now, the uncertainty surrounding NewJeans' future in HYBE's roster continues to weigh on the entertainment giant's outlook.
NewJeans fans threaten lawsuits against HYBE amid Min Hee-jin’s dismissal and financial losses
Meanwhile, fans of NewJeans have expressed strong discontent with the parent label. They have accused the company of running a negative media campaign against the group and have threatened legal action, including charges of embezzlement and breach of fiduciary duty if their concerns are not addressed.
The controversy began when a former journalist revealed a recording during a radio show, where a HYBE representative allegedly made disparaging remarks about NewJeans' performance in Japan. The label quickly denied the claims and promised legal action, asserting the recording was shared without consent.
The fan base of the group which includes around 5,000 supporters, has since issued an official protest to the company, urging it to protect the group’s reputation and reinstate Min Hee-jin as CEO of ADOR.
They argued that Min’s dismissal led to significant financial losses, including canceled events and albums, potentially amounting to billions of won. Fans are demanding immediate corrective measures, warning that they will proceed with legal action if HYBE and ADOR leadership fail to respond.
The ongoing legal dispute between the label and Min Hee-jin, who was removed from her CEO position at ADOR in August, has already caused delays in NewJeans' activities, including the cancellation of fan events and a pause in music production.
The situation escalated when the girl group requested Min’s reinstatement as CEO during a live broadcast in September, to which the label firmly responded that Min’s return was "not acceptable."
While it remains unconfirmed whether NewJeans will part ways with the label, as no official statements have been made by either party, fans are eagerly awaiting a resolution.
