NewJeans’ possible exit from ADOR will cost entertainment giant HYBE an estimated KRW 35 billion; know more

Given the recent feud between Min Hee Jin and HYBE, financial data analysis believes that the parent company could suffer a huge loss if NewJeans decides to part ways with ADOR. According to a recent report, the company could lose around KRW 35 billion if the girl group decides to leave the agency after their demands are not met.

According to Korea JoonAng Daily, NH Investment & Securities recently downgraded HYBE’s share price target following the company’s dispute with former ADOR CEO Min Hee Jin. Given the situation, the financial company excluded the girl group from its projection.

In a report published on September 26, NH Investment & Securities lowered the company’s forecast share price by 4 percent from KRW 280,000 to KRW 270,000. This calculation excluded NewJeans’ upcoming activities that would have contributed to HYBE’s profits, including the potential sales price of a full-length album that the group had previously planned to release in the second half of 2024, a world tour, and planned new music for 2025.

It was previously estimated that including all of these activities would give NewJeans HYBE an operating profit of KRW 10 billion in the second half of 2024 and an additional KRW 25 billion in 2025, for a total of KRW 35 billion. So if the girl group decides to leave the company, they can lose up to this huge amount of profits.

Lee Hwa Jeong, analyst at NH Investment & Securities, said: “Assuming the worst-case scenario and a conservative approach, we have lowered the company’s performance estimate on the premise of NewJeans’ absence.”

Meanwhile, HYBE has been embroiled in a legal battle with former ADOR CEO Min Hee Jin for months. The long-standing conflict led to her dismissal from the CEO post, which was then replaced by internal director Kim Joo Young.

NewJeans, not liking this new leadership change, held an emergency and gave HYBE an ultimatum that she be reinstated by September 25th. Min Hee Jin himself filed an injunction for this.

However, on September 25, ADOR’s new management stated that the decision had been made by the board and her reappointment as CEO was therefore “unacceptable.” At the same time, they have also confirmed that Min Hee Jin will continue to serve as Inside Director of NewJeans for the next five years, the length of her remaining contract.

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