South Korea's largest K-pop agency loses $423 million in value as girl group NewJeans set to part ways

South Korea's largest K-pop agency Hybe lost over $423 million in market cap on Friday after rookie group NewJeans announced it was terminating its contract with Hybe sub-label ADOR.

The announcement, which follows a months-long management dispute between ADOR and Hybe, sent the company's shares plunging as much as 6.97% on Friday.

The five-member girl group, formed in 2022, said in a press conference late Thursday that it was leaving the agency, claiming ADOR had breached its contract with the band.

"Staying here would be a waste of time and would only bring pain, mentally," group member Hanni said.

"There is nothing we can gain professionally from staying here, so the five of us see no reason to remain at ADOR," according to a translation by South Korean media outlet Yonhap.

Two weeks ago, NewJeans had sent a legal notice to Hybe with a list of demands, including reinstating former ADOR CEO Min Hee-jin, failing which, the group members threatened to terminate their contracts.

South Korean media outlet JoongAng Ilbo had also reported that the list of demands included "dealing with" a Hybe internal report that said to "get rid of NewJeans and start anew."

Hanni also said there was "mistreatment not just toward us but also toward our staff, countless preventions and contradictions, deliberate miscommunication, and manipulation regarding multiple areas." She did not elaborate further.

Hanni had reportedly testified to South Korea's parliament in October, claiming she had experienced workplace harassment at the label.

"This is not the type of work ethic we respect nor want to be a part of, and to continue working under a company with no intention of protecting NewJeans would only do us harm," she said at the press conference.

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