The value of South Korea's largest K-pop agency decreases by $420 million as NewJeans prepares to disband.

• The girl group, consisting of five members, announced in a press conference on Thursday evening that they were leaving their agency, ADOR, due to a breach of contract.
• On Friday, the announcement that ended a months-long management dispute between ADOR and Hybe caused the company's shares to drop by as much as 6.97%.

On Friday, Hybe, South Korea's largest K-pop agency, lost over $423 million in market cap 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 plummeting as much as 6.97% on Friday.

The girl group, consisting of five members, announced in a press conference on Thursday evening that they were leaving their agency, ADOR, due to a breach of contract.

Hanni stated that remaining in this location would be a waste of time and would only cause mental anguish.

According to Yonhap, the five of us see no reason to remain at ADOR because there is nothing we can gain professionally from staying here.

Last week, Hybe received a legal notice from NewJeans with a list of demands, including the reinstatement of former ADOR CEO Min Hee-jin. If these demands were not met, the group members threatened to end their contracts.

JoongAng Ilbo, a South Korean media outlet, reported that the list of demands included "dealing with" a Hybe internal report that recommended "getting rid of NewJeans and starting anew."

Hanni stated that there was mistreatment not only towards us but also towards our staff, numerous preventions and contradictions, intentional miscommunication, and manipulation in various areas. She did not provide additional details.

In October, Hanni allegedly testified to South Korea's parliament about the harassment she faced at the label.

She stated at the press conference that this work ethic is not respected and not desired to be associated with, and continuing to work under a company that does not prioritize protecting NewJeans would only cause harm.

In April, ADOR CEO Min Hee-jin was accused by Hybe of trying to gain independence from the sublabel.

Hybe had been accused of copying the concept of NewJeans for use in another girl band under a different subsidiary, and Min had denied these allegations and condemned the company.

In August, Min resigned as CEO of ADOR, but continued to serve as a director until November 20th when he also resigned from that position.

In 2024, NewJeans won the Group of the Year Award at Billboard's Women in Music ceremony, further solidifying their status as one of K-Pop's most popular faces.

The group achieved success on multiple Billboard charts, including the Billboard Hot 100, Billboard 200, and Billboard Global 200.

In the third quarter of 2024, Hybe's net profit plummeted nearly 99% year on year, with analysts attributing the decline to limited artists and activities during the 2024 Olympics, as well as higher costs associated with the launch of KATSEYE, a localized group in the U.S.

The "Big Four" K-pop agencies have experienced a decline in their share prices, with Hybe losing 15.72% so far this year.