HYBE's Value Soars to $644M After Court Upholds NewJeans Contract

In a landmark decision that has sent shockwaves through the K-pop industry, South Korea’s largest entertainment agency, HYBE, saw its market value surge by an impressive ₩915 billion (around $644 million). This massive financial upswing came after the Seoul Central District Court decisively ruled in favour of HYBE’s subsidiary, ADOR, upholding the validity of its exclusive contract with the superstar girl group NewJeans. 

Following the ruling, HYBE's share price jumped by as much as 7.12%, reflecting strong investor confidence in the company’s stability.

The ruling brings a dramatic, if not harmonious, end to a bitter, year-long public feud that has captivated fans and worried investors. The conflict pitted NewJeans and their celebrated producer, former ADOR CEO Min Hee-jin, against the corporate might of HYBE.

The court’s decision has now locked the group into their contract until 2029, leaving them legally bound to an agency they have publicly disavowed.

The NewJeans Feud

The dispute ignited in early 2024 when Min Hee-jin, the creative visionary behind NewJeans and then-CEO of ADOR, accused another HYBE label, BELIFT LAB, of plagiarising her group’s concept for their new act, ILLIT. HYBE responded not with a creative discussion but with a surprise audit of ADOR, accusing Min of orchestrating a hostile takeover.

This internal power struggle escalated until HYBE, which holds an 80% majority stake in ADOR, successfully dismissed Min as CEO in August 2024. This move set the stage for an unprecedented confrontation with the artists themselves.

The members of NewJeans, who have shown unwavering loyalty to Min Hee-jin, took the extraordinary step of entering the fray. In a surprise livestream, they called HYBE an "inhumane company". Later, in November 2024, the group held its own press conference to unilaterally declare its contracts terminated.

They argued that a "breakdown of trust" and the sudden departure of Min, who they saw as central to their success, violated the core obligations of their agreement.

The Court's Decisive Ruling

On October 29, 2025, the Seoul Central District Court systematically dismantled the group's case. The judge dismissed NewJeans' claims and confirmed that the exclusive contract, signed in April 2022, remains valid until 2029. The court found that the group's personal trust in Min Hee-jin was not a legal condition of their artist contract.

It also ruled that Min's departure did not legally constitute a breach, noting that ADOR, now under new HYBE-appointed leadership, was still perfectly capable of managing the group. The court highlighted that ADOR had continued releasing albums, organizing fan meetings, and planning world tours despite the fallout.

What This Means for HYBE and ADOR

For HYBE, the verdict was a massive financial victory. The $644 million surge in market capitalization reflects pure investor relief. For a year, the market had been terrified by the risk of HYBE’s "multi-label" system collapsing, with a top-tier artist simply walking away. The court’s ruling affirmed that the contracts—the foundational assets of the K-pop business model—are iron-clad and enforceable.

Investors weren't celebrating a happy resolution; they were celebrating the removal of massive financial risk. 

But for ADOR, it’s an awkward win. The label now has the legal right to manage its only K-pop band, but that artist has publicly declared its hatred for the company. HYBE has already installed its own executive, Kim Joo-young, as the new CEO to stabilise the subsidiary. 

ADOR’s real power now lies in a stark financial threat: the court also approved a penalty of ₩1 billion (about $700,000) per member for any unauthorised entertainment activity, effectively blocking them from going independent.

What’s New for NewJeans?

This leaves the members of NewJeans in a state of strategic paralysis. Their legal representatives have already announced their intention to appeal the decision, stating that a return to ADOR activities is "impossible" under the circumstances due to the irreparable breach of trust. The group faces a grim choice: either return to work under ADOR, a company they've publicly denounced, or refuse and enter a career-damaging hiatus, enforced by the steep financial penalties.

The entire saga has been a public test for HYBE’s multi-label system. This decision powerfully confirms that K-pop's exclusive contracts are iron-clad, while also setting a new legal standard for artists who want to fight their agreements. 

In response to the conflict, HYBE has already signalled a shift to "HYBE 2.0", a new strategy to centralize control and prevent a star producer from ever holding this much sway again. The case drew significant international attention, with global fans and even figures like pop star Kesha publicly supporting NewJeans, highlighting the ongoing tensions between artist rights and corporate control in the global entertainment industry.