NewJeans contract termination with ADOR costs HYBE $423M
After NewJeans announced contract termination with ADOR, a big financial blow hits HYBE, amounting to almost half a billion dollars.
The lawsuit between ADOR CEO, Min Hee Jin, and parent label HYBE has been ongoing for months. Recent developments indicate that the Seoul Central District Court has approved Min Hee Jin’s injunction, preventing HYBE from exercising their shareholder voting rights to dismiss her as the subsidiary label’s CEO.
Reports indicate that if HYBE removes her, they must pay 20 million won in compensation. HYBE had accused Min Hee Jin of planning to take over the subsidiary label using the K-pop girl band NewJeans, which is under ADOR. With HYBE owning 80% of the shares, their votes in the shareholders’ meeting were central to the case.
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Following news that HYBE had potential replacements for Min Hee Jin, she will now be able to retain her position and pursue her plans for NewJeans. During the suit, a series of alleged texts revealed by HYBE involved ADOR officials and seemingly supported HYBE’s accusations. These texts, released by TV Daily, showed CEO Min planning to remove ADOR from HYBE’s multi-label system to gain independent control.
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At a previous press conference, Min responded to the accusations, claiming she only met with Naver and Dunamu for social reasons, not to gain independent control of ADOR.
The high-profile legal feud between HYBE and ADOR’s CEO has attracted significant scrutiny. Following the court ruling, HYBE announced they would respect the outcome and not exercise their power to dismiss Min. At a subsequent press conference, Min expressed her gratitude to NewJeans fans and proposed reconciliation with HYBE, stating, “If I were thinking only of my own future, I would choose otherwise. But if I continue to work toward the plans I envisioned with the NewJeans members, I do not believe that it will bring losses to anyone. I want to suggest a rational approach.”
The feud continues to evolve, and it remains to be seen how things will fare for HYBE and Min Hee Jin now that she can retain her position at the subsidiary label.
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