South Korea’s largest K-pop agency, Hybe, surged in market value by about $644 million on Thursday after a court ruled that NewJeans’ contract with its sublabel ADOR remains valid.
Hybe’s shares jumped as much as 7.12%, lifting its market capitalization by roughly 915 billion won ($644 million). The decision confirms that NewJeans remain under contract with ADOR until 2029, following their original agreement signed in April 2022.
legal victory stabilizes Hybe’s market position
The ruling marks a significant turning point in Hybe’s prolonged legal standoff with the five-member girl group. NewJeans had sought to terminate their contract in November 2024, citing alleged breaches by ADOR. The announcement at the time erased nearly $420 million from Hybe’s market capitalization.
In response, ADOR filed a countersuit in December 2024, requesting judicial confirmation that the contract was still legally binding.
background of the dispute
The legal conflict dates back to April 2024, when Hybe accused former ADOR CEO Min Hee-jin of attempting to take the sublabel independent. Min denied the allegations, instead accusing Hybe of replicating NewJeans’ creative concept for another girl group under a different Hybe subsidiary.
Min resigned as ADOR’s CEO in August 2024 but continued as a board director until stepping down from that position on November 20.
NewJeans remain a key K-pop asset
Debuting in 2022, NewJeans quickly became one of K-pop’s most successful acts, achieving major domestic awards and charting across 10 Billboard rankings, including the Billboard Hot 100, Billboard 200, and Billboard Global 200.
Hybe and its network of sublabels manage several of K-pop’s biggest names, including BTS, Seventeen, and LE SSERAFIM, positioning the company as the leading powerhouse in South Korea’s entertainment industry.
