NewJeans parts ways with Hybe's ADOR amid contract breaches

In a significant development within the South Korean music industry, the girl group NewJeans announced on November 29, 2024, during a press conference that they would be terminating their contract with ADOR, a subsidiary of Hybe, South Korea's largest K-pop agency. This decision was influenced by a multi-month management dispute and claims from the group that ADOR had breached their contract. Members of NewJeans voiced their frustrations publicly, stating that remaining with ADOR would result in further mental pain and professional stagnation. The announcement led to a dramatic loss in Hybe's market value, reportedly over $423 million, as their shares plunged by nearly 7% following the news of the group's departure. The controversy stemmed from a series of demands NewJeans presented to Hybe two weeks prior to their announcement. Among their requests was the reinstatement of former ADOR CEO Min Hee-jin. Following these demands, the group indicated they would terminate their contracts if their requests were not met. They also alleged mistreatment by the label and pointed to issues involving miscommunication and manipulation within the company that impacted not just the group but also their staff. Hanni, one of the group members, emphasized during the press conference that the work environment under ADOR was detrimental to their well-being, stating that it was not in line with their values or expectations for a supportive work ethic. Min Hee-jin, who had been appointed CEO of ADOR, was removed from her position in August 2024 after being accused by Hybe of attempting to take the label independent. The fallout from these accusations saw Min resign from the company altogether in November 2024. The dismissal of Min and the subsequent turmoil within ADOR reportedly contributed to NewJeans' frustrations, culminating in their high-profile exit. This decision will likely have lasting implications for both NewJeans and ADOR, as the group has quickly risen to fame since their debut in 2022, even winning accolades such as the Group of the Year Award at Billboard's Women in Music ceremony in 2024, where they made significant impressions on various Billboard music charts. Hybe's challenges are visible in its financials, too. In its third quarter earnings report for 2024, Hybe announced a staggering 99% plunge in net profit year-on-year, attributing this to reduced artist activities during the ongoing 2024 Olympics and increased costs associated with the launch of a new U.S. localized group, KATSEYE. The crisis surrounding NewJeans' exit from ADOR is not just a blow to their label but signals deeper structural issues within Hybe and its subsidiaries, especially as fans and analysts observe the fallout and future moves from both the group and the label.