Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
NewJeans strife angers investors
Members of K-pop girl group NewJeans pose during a press conference in southern Seoul, Thursday, when they announced the end of their contract with Ador, a sub-label of K-pop powerhouse HYBE. Yonhap
By Yi Whan-woo
Shareholders of K-pop powerhouse HYBE are dissatisfied with the company’s management style after NewJeans announced it would end its contract with Ador, a HYBE sub-label.
The announcement was made unexpectedly on Thursday evening, following a prolonged dispute between HYBE and former Ador CEO Min Hee-jin, the creator of NewJeans, over who should have management rights of the internationally popular girl group's agency.
HYBE slid 4.08 percent to close at 195,200 won on the benchmark KOSPI on Friday, marking a two-day losing streak, following NewJeans’ announcement in protest of Min’s dismissal as Ador CEO.
During intraday trading on Friday, the company dipped as low as 189,300 won, the lowest level in more than three weeks.
HYBE's headquarters in Seoul / Yonhap
“I can’t believe HYBE is a publicly-traded company, considering investors hear about news that can affect its stock price from media, not through official disclosure made by the company,” a user said in a chatroom of HYBE investors.
They pointed out that the feud between HYBE and Min has been ongoing for months, while “investors are left blind concerning relevant information.”
Another user partly criticized NewJeans “for being immature and reckless for making the abrupt, one-sided announcement,” saying they make up a significant portion of HYBE’s sales.
“Nevertheless, it is HYBE that should ultimately take the blame for the tumble in stock price,” the user said, noting that NewJeans members are in their teens or early 20s.
They added, “They are too young to judge how their words can affect the stock price, and I must say HYBE is simply unprofessional in taking care of its artists."