The group claimed that there was a breach of contract by their label ADOR, which is a sublabel of K-pop powerhouse Hybe.
South Korea’s largest K-pop agency Hybe lost over $423 million in market cap on Friday after rookie group NewJeans announced it was terminating its contract with Hybe sub-label ADOR.
The announcement, which follows a months-long management dispute between ADOR and Hybe, sent the company’s shares plunging as much as 6.97% on Friday.
The five-member girl group, formed in 2022, said in a press conference late Thursday that it was leaving the agency, claiming ADOR had breached its contract with the band.
“Staying here would be a waste of time and would only bring pain, mentally”, group member Hanni said.
“There is nothing we can gain professionally from staying here, so the five of us see no reason to remain at ADOR”, according to a translation by South Korean media outlet Yonhap.
Two weeks ago, NewJeans had sent a legal notice to Hybe with a list of demands, including reinstating former ADOR CEO Min Hee-jin, failing which, the group members threatened to terminate their contracts.
