Court Confirms Validity of NewJeans’ ADOR Contract...HYBE’s Market Cap Rises by 644 Billion Won

HYBE, South Korea’s largest K-pop entertainment company, has regained approximately 644 billion won in market capitalization following a court ruling confirming the validity of NewJeans’ contract. According to the court decision issued on Thursday, NewJeans’ contract with its subsidiary label ADOR remains valid, with the agreement signed in April 2022 lasting until 2029. HYBE’s stock price rose by 7.12% temporarily, resulting in an additional approximately 915 billion won in market cap. This ruling represents the latest development in a legal dispute that has persisted for over a year. NewJeans filed a request to terminate the contract in November 2024, citing ADOR’s breach of terms. At that time, HYBE’s market cap declined by approximately 420 billion won due to this announcement. In response, ADOR filed a lawsuit in December 2024 seeking confirmation of the contract’s validity. The legal conflict dates back to April 2024, when HYBE alleged that Minhee, the former CEO of ADOR, attempted to make the subsidiary label independent. The former CEO denied these claims and counteraccused HYBE of copying NewJeans’ concept for other girl groups under its umbrella. Minhee resigned as ADOR’s CEO in August 2024 and also stepped down from her role as director on November 20 of the same year. Since their debut in 2022, NewJeans has become one of the most popular K-pop groups, winning numerous awards at major domestic ceremonies and appearing on 10 Billboard charts, including the Billboard Hot 100, Billboard 200, and Billboard Global 200. HYBE manages other prominent K-pop artists such as BTS, SEVENTEEN, and LE SSERAFIM.