HYBE shares tank as K-pop dispute with NewJeans' ADOR escalates

Girl group NewJeans [ADOR]

K-pop powerhouse HYBE’s share price slid over 3 percent on Tuesday morning, following a 7.81 percent plunge a day prior, as the company clashes with the CEO of its subsidiary ADOR, the agency behind the girl group NewJeans.

As of 10:15 a.m. Tuesday, HYBE traded at 205,500 won ($149), down 3.29 percent from the previous day’s closing price. The price hit a low of 202,500 won, down 4.71 percent, around 9:45 a.m.

HYBE plunged 7.81 percent on Monday to close at 212,500 won, following reports that HYBE launched a probe against executives of ADOR, including CEO Min Hee-jin, for an alleged attempt to seek independence.

The company's market cap shrank by 749.7 billion won on Monday to 8.85 trillion won. As of 10:15 a.m., it stood at 8.54 trillion won.

HYBE, the agency behind BTS, owns 80 percent of ADOR, which manages NewJeans.

Min defended herself, criticizing HYBE founder Bang Si-hyuk, as well as the parent company’s disregard for the similarities between NewJeans and fellow rookie girl group ILLIT, which debuted in March under ADOR's sister label Belift Lab.

While Min denied the allegations of an attempted takeover, media reports on Tuesday morning suggested ADOR management has been planning to “keep [HYBE's] hands off us and get away,” citing an internal document.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]