The popular K-pop group NewJeans held a live stream on YouTube on the night of the 11th, demanding that the major entertainment agency HYBE reinstate the dismissed subsidiary’s former CEO Min Heejin by September 25. This is an unprecedented situation in the K-pop industry, which is dominated by a few powerful management companies.
After the live stream, HYBE’s stock price temporarily plummeted by 6.2% on the 12th, marking the largest drop during trading hours in the past month. The five members of NewJeans claimed that discriminatory practices were taking place at HYBE and requested measures to protect the group.
NewJeans belongs to the HYBE subsidiary ADOR and is currently one of the most popular K-pop groups. According to HYBE’s report, they generated revenues of 100 billion won (approximately 10.6 billion yen) last year. Mr. Min had long served as the producer for NewJeans.
K-pop group NewJeans
Photographer: SeongJoon Cho/Bloomberg
HYBE did not immediately respond to requests for comments.
NewJeans’s actions highlighted the growing backlash against HYBE. In August, HYBE asked Mr. Min to step down as the CEO of ADOR and requested him to produce NewJeans’s album for a two-month contract. According to a statement from Mr. Min’s lawyer, this contradicts a previous court order that prohibited the removal of Mr. Min by ADOR’s CEO.
Since the conflict between Mr. Min and HYBE became public in mid-April, the company’s market capitalization has decreased by 27%. HYBE conducted an internal audit to investigate Mr. Min’s activities and accused him of attempting to seize control of ADOR. The disagreements between the two were brought to court, and the court ruled that Mr. Min should remain at the helm of ADOR, with a decision supporting that outcome.
Original title: Kpop Stars Send Ultimatum to Managers in Rare Industry Revolt (excerpt)