HYBE reportedly faces an 850B KRW loss amid ongoing conflict with ADOR’s CEO Min Hee-jin, awaits Jin and J-hope’s return from the military

The HYBE and ADOR CEO Min Hee-jin conflict has reportedly resulted in a loss of 850 billion Korean won (approximately 600M USD). On April 23, E Daily reported that the Korean entertainment label is losing money, increasing anxiety among investors.

As per the data revealed by the Korea Exchange, HYBE's market closed at 210,000 won on April 23, down 1.18% (2,500 won) from the previous trading day. The stock price continued to drop for two days in a row during trade, reportedly resulting in a loss of 853.8 billion won in market value.

As per the reports, the financial changes at HYBE are due to the ongoing feud between CEO Min Hee-jin and ADOR's parent label. On April 22, HYBE launched an audit against ADOR management and called for the resignation of the board of directors.

HYBE stated that they found physical evidence of Min Hee-jin's attempt to take over ADOR management rights, of which NewJeans is a part.

However, as BTS members Jin and J-hope are expected to return to the music scene following the completion of their military service, stock prices are anticipated to rebound.

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HYBE reportedly loses 850B KRW, stock prices expected to rebound after BTS’ Jin and J-hope's return

K-pop sensation Jin and J-hope of BTS are currently completing their national duties by serving in the military. The two stars are expected to be discharged in the second half of 2024 and will be reportedly active in the entertainment industry.

The Astronaut singer Jin became the first member to enlist in the military on December 13, 2022, followed by the Arson singer J-hope on April 18, 2023. Despite their military break, BIGHIT MUSIC, another subsidiary of HYBE, became the highest profit-generating agency among others.

In 2023, BIGHIT MUSIC generated annual sales of 552 billion won with a net profit of 140 billion won, reportedly five times higher than that of ADOR. It is due to the group activities of TOMORROW X TOGETHER members and the solo activities of BTS members.

ADOR is a subsidiary of HYBE LABELS, which started in 2021. The conglomerate invested 16.1 billion Korean won and recruited former art director and general director of SM Entertainment Min Hee-jin as the CEO of the agency. ADOR witnessed significant growth following the debut of the first group under their management, which is NewJeans.

NewJeans rose to popularity owing to their infectious music and refreshing concept. The revenue generated by ADOR in 2023 due to NewJeans was 110 billion Korean won. ADOR's revenue last year was an increase of 491.7% from 2021.

It is said that the speed at which the agency achieved annual sales of 100 billion Korean won is unprecedented in a single year. This has reportedly been stated as the reason for the investors' concerns. However, the BTS member's comeback is expected to stabilize the situation.

More about HYBE and ADOR CEO Min Hee-jin’s feud

On Thursday, April 25, as per Yonhap News, the label reportedly announced the filing of a criminal complaint against Min Hee-jin. As per the reports, based on physical evidence, the CEO attempted to seize the management rights of ADOR as well as leak confidential information about the agency.

The label also accused Min Hee-jin of witchcraft with the help of a shaman. Following the allegations, the art director called for an emergency press conference the same day, which began at 3 p.m. KST.

In the press conference, she revealed her conversations with Chairman Bang Si-hyuk, whom she accused of copying NewJeans for ILLIT's debut concept. The CEO also addressed the accusations made against her.

Meanwhile, Jin is expected to return a day before the BTS 11th debut anniversary on June 12, 2024, and J-hope will be discharged in October 2024.