South Korea’s largest Ok-pop company Hybe misplaced over $423 million in market cap on Friday after rookie group NewJeans introduced it was terminating its contract with Hybe sub-label ADOR.

The announcement, which follows a months-long administration dispute between ADOR and Hybe, despatched the corporate’s shares plunging as a lot as 6.97% on Friday.

The five-member woman group, fashioned in 2022, mentioned in a press convention late Thursday that it was leaving the company, claiming ADOR had breached its contract with the band.

“Staying right here could be a waste of time and would solely deliver ache, mentally,” group member Hanni mentioned.

“There’s nothing we are able to achieve professionally from staying right here, so the 5 of us see no cause to stay at ADOR,” in accordance with a translation by South Korean media outlet Yonhap.

Two weeks in the past, NewJeans had despatched a authorized discover to Hybe with a listing of calls for, together with reinstating former ADOR CEO Min Hee-jin, failing which, the group members threatened to terminate their contracts.

South Korean media outlet JoongAng Ilbo had additionally reported that the record of calls for included “coping with” a Hybe inner report that mentioned to “eliminate NewJeans and begin anew.”

Hanni additionally mentioned there was “mistreatment not simply towards us but in addition towards our employees, numerous preventions and contradictions, deliberate miscommunication, and manipulation relating to a number of areas.” She didn’t elaborate additional.

Hanni had reportedly testified to South Korea’s parliament in October, claiming she had skilled office harassment on the label.

“This isn’t the kind of work ethic we respect nor need to be part of, and to proceed working below an organization with no intention of defending NewJeans would solely do us hurt,” she mentioned on the press convention.

In April, Hybe accused then ADOR CEO Min Hee-jin of making an attempt to take the sublabel impartial.

Min had denied the allegations and denounced Hybe, saying they’d copied the idea of NewJeans to make use of in one other woman band below a distinct Hybe subsidiary.

Min stepped down as ADOR CEO in August, however remained as a director of the corporate, earlier than resigning from that place as effectively on Nov. 20.

The group has turn out to be one among Ok-Pop’s hottest faces when it debuted in 2022, successful quite a few accolades at South Korean award reveals. In 2024, NewJeans had additionally received the Group of the 12 months Award at Billboard’s Girls in Music ceremony.

Billboard’s quotation mentioned the group scored entries throughout 10 Billboard charts, together with the Billboard Sizzling 100, Billboard 200, and Billboard World 200. 

Hybe web revenue plunged practically 99% yr on yr within the third quarter of 2024, with analysts saying gross sales shrank because of restricted artists and actions through the 2024 Olympics, whereas profitability was additionally damage by increased prices owed to the launch of KATSEYE, a localized group within the U.S.

Hybe shares have misplaced 15.72% thus far this yr amid a wider downtrend within the business, with all the “Huge 4” Ok-pop companies seeing shares drop.