Hybe adds $282 million in market cap as ADOR CEO resigns amid ongoing dispute

Shares of Hybe, a major player in the K-pop industry, experienced a notable increase of 4.97% on Wednesday, following the announcement that Min Hee-jin, the former CEO of its sublabel ADOR, had stepped down.

This price surge added approximately 376.02 billion won (about $282.05 million) to Hybe’s market value.

The news marks a significant development in the ongoing management disputes that have been affecting the company, which is renowned for managing the globally popular K-pop group BTS.

Min Hee-jin resigns as ADOR CEO

Min Hee-jin’s resignation as CEO of ADOR was confirmed on Tuesday after market hours.

Despite stepping down from the top executive role, Min will continue to work with ADOR in her new position as an “internal director,” where she will still be involved in producing content for the popular girl group NewJeans.

The role of CEO at ADOR will be filled by Kim Joo-young, the company’s chief human resources officer.

This shift comes amidst a prolonged and public management dispute between Min and Hybe.

South Korean media have reported that Min criticized the decision to replace her as CEO, describing it as “illegal” and “unilateral.”

She also claimed that she was not consulted regarding her continued involvement in producing material for NewJeans.

Legal battles between Hybe and Min

The dispute between Hybe and Min Hee-jin has been escalating for several months. In April, Hybe filed a police report accusing Min of attempting to separate ADOR from the parent company.

In response, Min alleged that Hybe had replicated the concept of NewJeans for another girl group under a different Hybe subsidiary.

The tensions reached a peak in May when Hybe convened an extraordinary general meeting (EGM) to vote on Min’s removal as CEO.

Min contested this move by filing an injunction with the Seoul Central District Court. The court granted the injunction, ruling that Hybe could not use its voting rights during the EGM to effectuate her removal.

The legal and management battles reflect broader challenges within the K-pop industry, where high-stakes corporate decisions and personal disputes can significantly impact market performance and public perception.

Hybe’s market response and future outlook

The immediate market reaction to Min’s resignation suggests that investors may view the change in ADOR’s leadership as a positive development.

The 4.97% rise in Hybe’s share price indicates a boost in confidence among investors, possibly due to anticipated stability following a tumultuous period.

Looking ahead, it remains to be seen how the leadership transition at ADOR will affect the company’s operations and its relationship with key artists like NewJeans.

The continued involvement of Min Hee-jin in a different capacity might help maintain continuity for the group, while the new leadership under Kim Joo-young will need to navigate the challenges and expectations associated with the role.