SEOUL, SOUTH KOREA – MARCH 7: NewJeans attends the first court hearing for ADOR lawsuit at Seoul Central District Court in Seocho-gu on March 7, 2025 in Seoul, South Korea. (Photo by The Chosunilbo JNS/Imazins via Getty Images)
The Chosunilbo Jns | Imazins | Getty Images
South Korea’s largest K-pop agency Hybe added about $644 million in market value Thursday after a court reportedly ruled that girl group NewJeans’ contract with its sublabel ADOR remains valid.
Hybe shares gained as much as 7.12%, boosting its market capitalization by roughly 915 billion won ($644 million).
The court ruling means that NewJeans are still contractually bound with ADOR until 2029, having signed their contract in April 2022.
Hybe and its sublabels manage some of K-pop’s most popular names, including BTS, Seventeen, and LE SSERAFIM.
The ruling is the latest development in a yearlong legal battle that began when the five-member girl group sought to terminate its contract with Hybe in November 2024, citing contract breaches by ADOR. The announcement wiped about $420 million from Hybe’s market cap at the time.
ADOR then filed a lawsuit against the group in December, seeking confirmation of the validity of the exclusive contract.
The case stemmed from a conflict in April 2024 when Hybe accused then ADOR CEO Min Hee-jin of attempting to take the sublabel independent.
Min denied the allegations and accused Hybe of copying NewJeans’ concept for another girl band under a different Hybe subsidiary.
She resigned as ADOR CEO in August 2024, but remained as a company director before resigning from that position on Nov. 20 as well.
NewJeans became one of K-pop’s most popular acts when it debuted in 2022, winning numerous domestic accolades and earning spots on 10 Billboard charts, including the Billboard Hot 100, Billboard 200, and Billboard Global 200.