Stock prices dropped dramatically in one day.
This article is part of our coverage of HYBE against ADOR CEO Min Hee Jin. You can read more and view the entire timeline here.
On November 28, KST, New Jeans held an emergency press conference and confirmed that they would be leaving I LOVE ITterminating their exclusive contract with the label.
As KST reported on November 29, the group’s departure cost HYBE a whopping $423 million.
NewJeans’ departure came after months of escalation between them and their label, as well as conflicts between HYBE and ADOR’s former CEO Min Hee Jinto which the members of NewJeans are still loyal. The group’s stronghold on the K-Pop market within just a year of its debut had already made them one of HYBE’s top money makers.
As a result, the group’s decision to leave the company sent shockwaves through the K-Pop industry, resulting in a 6.97% drop in HYBE stock prices. On the morning of November 29, HYBE shares were priced at ₩196,000 KRW (approximately $140 USD), down 6.34% from the previous day. The price fell further after the opening, to ₩190,000 KRW (around $136 USD), leading to a total loss of $423 million USD in terms of market capitalization.
While NewJeans has already made it clear that the members want to leave ADOR and continue working with former CEO Min Hee Jin, the label’s current management has said they are interested in continuing dialogue with the group and honoring the contract. Read more here.
