Outlook Business Desk
Shares of South Korean entertainment company Hybe rose on Thursday after a court ruled in its favour in a case related to K-pop girl group NewJeans. The ruling boosted the K-pop powerhouse’s market value by about $644 million.
Hybe’s stock jumped more than 7.12% after the court ruling, increasing its overall market capitalisation by nearly 915 billion won in early trade in Seoul. The South Korean agency is the parent firm behind k-pop groups like BTS, TXT, Enhyphen and Seventeen.
The case concerns NewJeans members seeking to end their contracts with Hybe and its subsidiary ADOR, alleging harassment and manipulation. However, the court ruled that NewJeans’ exclusive agreement with ADOR, signed in April 2022, remains legally binding and will continue until 2029.
In November 2024, NewJeans sought to end their deal with Hybe, alleging contract breaches by ADOR, which at the time wiped about $420 million off Hybe’s market value.
In December, ADOR filed a lawsuit against NewJeans, requesting the court to officially confirm that the group’s exclusive contract with the label remained valid and enforceable under law.
The clash can be traced back to April 2024, when Hybe accused then ADOR CEO Min Hee-jin of trying to take the sublabel independent, creating deep tension between both sides.
Min denied the allegations and accused Hybe of copying NewJeans’ concept for another girl group called ILLIT. She quit as CEO in August and resigned as director in November 2024.
Since debuting in 2022, NewJeans have become one of K-pop’s biggest acts, winning major awards and charting globally on Billboard Hot 100, 200, and Global 200. The five member group plans to appeal the today's ruling.