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.
