Hybe vs ADOR: 3 Possible Futuresfor NewJeans Amidst the Battle

Hybe vs ADOR: 3 Possible Futuresfor NewJeans Amidst the Battle

In the midst of the powerstruggle between Hybe and Min Hee-jin, the CEO of ADOR, the future of NewJeans,who are set to make a comeback in May, has become uncertain.

On April 22nd, the K-pop industrywas shocked when Hybe, the largest entertainment company in Korea, announced anaudit of its subsidiary label ADOR, citing an alleged "attempt to seizemanagement rights.

" CEO Min Hee-jin denied the allegations and insteadraised another issue, claiming that Hybe copied NewJeans during the launchprocess of the group ILLIT

Naturally, the public's attentionturned to NewJeans, who are currently considered the representative girl groupof the 4th generation and enjoying great popularity both domestically andinternationally.

There are three main possible scenarios for how this situationmay unfold.

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◇ If only CEO Min Hee-jin leavesand NewJeans stays with ADOR

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If CEO Min Hee-jin steps downfrom ADOR, only the management will change, and NewJeans will continue theiractivities as artists under the label.

In this case, NewJeans willlikely proceed with their scheduled double single comeback on May 24th, as wellas their official Japanese music release and solo fan meeting at the Tokyo Domein June.

However, the absence of CEO Min, who was known as "NewJeans'mom," will be significant.

NewJeans, who debuted under theleadership of CEO Min, released a series of hit songs such as "HypeBoy," "Attention," "Ditto," and "OMG"immediately after their debut in 2022.

The easy listening and Y2K vibe showcasedby NewJeans were praised for changing the trends in the music industry.

The keypoint will be how the new management replacing CEO Min will create synergy withNewJeans and increase their brand value.

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◇ If both CEO Min Hee-jin andNewJeans stay

This is the most ideal situation,where the conflict between Hybe Chairman Bang Si-hyuk and CEO Min is resolved.

Although it seems unlikely at the moment, if this happens, both CEO Min andNewJeans can remain with ADOR.

On the day the news of the audit broke, Hybe'sstock price plummeted by 7.81% in a single day, so if the risk is resolved, thestock price is expected to rise again.

Of course, with BTS members Jinand J-Hope being discharged from the military in June and October respectivelyand likely to resume activities, Hybe's stock price, which plummeted due tothis incident, is expected to rebound.

If the conflict between Hybe and CEO Minis resolved, it may further boost the stock price.

However, there are many issues tobe resolved. If Hybe's claim that CEO Min and the current ADOR managementattempted to seize control of ADOR is true, they will have to be heldaccountable.

As the conflict has escalated, reconciliation will not be easy.

It is also worth noting whetherthis incident will change Hybe's policy of emphasizing the independence of eachlabel under its "multi-label system."

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◇ If both CEO Min Hee-jin andNewJeans leave

This is the worst-case scenario.In this case, NewJeans would have to file an injunction to suspend theeffectiveness of their exclusive contract with ADOR. If the injunction isdismissed, NewJeans will remain with ADOR, and if it is granted, they will beable to continue their activities. This can be seen as a second"FIfty-Fifty" incident.

Until the legal outcome isdetermined, all planned activities for NewJeans, including their domesticcomeback in May, Japanese debut in June, and Tokyo Dome fan meeting, willbecome uncertain. This would be the biggest loss for NewJeans in terms of team activities,as they have achieved career highs with each album release.

As CEO Min is knownto be like a "mother" to NewJeans, the possibility of the worst-casescenario cannot be ruled out.

Since CEO Min and the currentADOR management have detailed information related to NewJeans' contracts, if alegal battle ensues, it is expected to have a significant impact on NewJeans'image.

Meanwhile, on April 22nd, Hybesent an audit inquiry to CEO Min and the ADOR management. It included detailson the alleged attempt to seize management rights, suspicions of externalconsulting, and personnel hiring irregularities.

Hybe also requested CEO Min'sresignation and called for a shareholders' meeting to replace the current ADORboard of directors.

In response, ADOR stated,"We have never met with any investors to seize management rights,"and claimed, "When we raised issues about other matters revealed by the ILLIT's copying of NewJeans, we suddenly received notice of dismissal

procedures."CEO Min Hee-jin is the second-largest shareholder of ADOR, holding 18% of theshares, while Hybe is the largest shareholder with 80%.

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