(Bloomberg) — Popular K-pop group NewJeans took to Youtube to demand Hybe Co. reinstate their ousted long-time producer by Sept. 25, escalating an ongoing dispute and stunning an industry controlled by a handful of powerful management firms.
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Hybe’s shares dived as much as 6.2% — their biggest intraday fall in a month — after the five-member group announced their demands in a surprise Youtube live-stream Wednesday evening. The women accused Hybe of discrimination and called for measures to protect NewJeans, one of the most lucrative and popular K-pop bands that generated 100 billion won ($73 million) of revenue last year, according to a company filing.
Hybe didn’t immediately respond to a request for comment.
NewJeans’ ultimatum underscored a deepening revolt against the management company. It comes after Hybe ordered Min Hee-jin to step down as CEO in August and gave her two months to work on the group’s album. In doing so, Hybe defied an earlier court order that barred Hybe from dismissing Min as the head of sister label ADOR, which produces NewJeans, according to a statement from Min’s lawyer.
“If our message has been properly conveyed, we hope chairman Bang and Hybe will make a wise decision to restore ADOR to its original state by the 25th,” NewJeans member Minji said at the end of the video, referring to label chairman Bang Si-Hyuk.
The power struggle at Hybe has wiped out 27% of Hybe’s market value since the dispute between Min and the company first surfaced in mid-April. Hybe started an internal audit of Min’s activities, accusing her of trying to seize control of ADOR. They took their disagreement to court, where a judge ruled the producer should remain head of the sister label.
“All we want is this legal conflict to be resolved and have our working environment returned back to normal the way it was before,” another member Hanni said.
–With assistance from Shinhye Kang.
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