Seoul, South Korea – March 7: NewJeans attends the first trial of the ADOR lawsuit held on March 7, 2025 at the Seoul Central District Court, Seocho District, Seoul, South Korea. (Photo provided by Chosun Ilbo JNS/Imagins via Getty Images)
Chosun Ilbo JNS | Imagine | Getty Images
Hybe, South Korea’s largest K-pop agency, added about $644 million to its market capitalization on Thursday after a court ruled that its contract with girl group NewJeans and sublabel ADOR remains valid.
Hive shares rose as much as 7.12%, increasing its market capitalization by about 915 billion won ($644 million).
The court’s decision means that NewJeans will enter into a contract in April 2022 that will remain contractually binding with ADOR until 2029.
Hybe and its sublabels control some of K-pop’s most popular brands, including BTS, Seventeen, and LE SSERAFIM.
The ruling is the latest development in a year-long legal battle that began when the five-member girl group sought to terminate their contract with Hive in November 2024, citing breach of contract by ADOR. The announcement wiped out about $420 million from Hive’s market capitalization at the time.
ADOR filed a lawsuit against the group in December, seeking confirmation of the validity of the exclusive contract.
The lawsuit stems from a dispute in April 2024 in which Hybe accused then-ADOR CEO Min Hee-jin of trying to make the sublabel independent.
Min denied the allegations and accused Hybe of copying NewJeans’ concept and creating another girl band under another Hybe subsidiary.
She stepped down as ADOR’s CEO in August 2024, but remained on the company’s board, and subsequently resigned from that position on November 20.
NewJeans became one of K-Pop’s most popular artists upon debuting in 2022, earning numerous domestic accolades and spots on 10 Billboard charts, including the Billboard Hot 100, Billboard 200, and Billboard Global 200.
