HYBE
Page: 3
A Seoul court has barred K-pop giant HYBE from dismissing Min Hee-jin as CEO of its ADOR subsidiary label following HYBE’s internal audit and subsequent police report against the executive last month. The decision will keep Min in her role as CEO, by extension allowing her to stay in control of the label’s sole artist, girl group NewJeans.
As Bloomberg cites from local Korean coverage, “The Seoul Central District Court said HYBE’s evidence and rationale were not sufficient to back the company’s case for Min’s dismissal.” Despite HYBE’s 80% stake in ADOR (where Min has an 18% stake, with the last 2% retained by other executives), the company cannot vote to dismiss Min, which it was expected to do at a company shareholder meeting scheduled for Friday (May 31).
Trending on Billboard
“We urge HYBE to respect the court’s decision,” Min’s attorney said in a statement, per Bloomberg. “If Hybe takes any action to remove Min from her position as CEO, it will be in direct violation of the shareholders’ agreement.” The legal reps shared their hope that Min’s leadership team at ADOR would also stay intact.
In its own statement, HYBE acknowledged the court’s decision and said it would not utilize its voting rights but vowed to “follow up within the framework of the law.” The company noted that the court admitted Min had sought ways to weaken HYBE’s control over ADOR — efforts that could have led to Min independently running ADOR, taking NewJeans out of the HYBE system or pressuring HYBE to sell its shares in the subsidiary label. The company say sit still plans to pursue its breach of trust case after finding “substantial evidence to prove that Min deliberately led the plan to take over management control of the subsidiary.”
In the meantime, the 2023 Billboard Women in Music honoree will be able to continue directing NewJeans following ADOR’s release of two new singles from the group: “How Sweet” and “Bubble Gum.” The group’s debut Japanese single, “Supernatural” — which reportedly reinterprets a ’00s Pharrell single — is set to drop in June.
Despite the court ruling, the ongoing K-pop power struggle is hardly resolved, and in fact has only widened since HYBE’s initial audit in April.
Following HYBE’s request for her to exit her role as ADOR CEO, Min held an emotional two-hour press conference in which she detailed her concerns and struggles with other teams in the HYBE LABELS system. AsThe New York Times‘ Seoul reporter Jin Yu Young noted in her report, Min’s “pushback against HYBE and its founder, Bang Si-Hyuk, has resonated widely in South Korea, where corporate life can be punishingly hierarchal.”
Last week, HYBE label BELIFT LAB announced it had submitted a letter of complaint for obstruction of business and defamation against Min stemming from Min’s claims that BELIFT girl group ILLIT had copied NewJeans music, style and creative concept. The conflict has also involved the parents of NewJeans members, who have voiced worries about Minji, Hanni, Danielle, Haerin and Hyein’s reputation and treatment in a letter.
The court order follows last Friday’s release of new material from NewJeans and fellow HYBE artist RM, both of whom will likely make substantial bows on the Billboard charts next week.
K-pop giant HYBE sold a portion of its stake in rival South Korean music group SM Entertainment worth $50 million, or roughly 3% of the company, according to a filing made public on Tuesday (May 28). Though it sold roughly 755,500 shares worth 68.4 billion Korean won, HYBE still owns some 2.2 million shares comprising […]
K-pop giant HYBE posted its lowest total revenue in two years as its recorded music segment sank to its lowest level in seven quarters, the South Korean company announced Thursday (May 2).
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
HYBE had first quarter revenue of 360.9 billion won ($271.5 million), down 12.1% year over year and the lowest since posting 285 billion won ($214.4 million) in the first quarter of 2022. Operating profit fell precipitously to 14.4 billion won ($10.8 million), down 72.6% from the prior-year period.
HYBE’s share price was barely affected by the slowest quarter in years. The share price initially rose 1.7% to 205,500 won ($149.23) but my midday had fallen to 201,500 ($146.33), down 0.2%. The stock is down 13.7% year to date, however, and fell 12.6% last week following news that HYBE will report the CEO of its ADOR imprint, Min Hee-jin, to the police for “breach of trust and other related allegations.”
Trending on Billboard
Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of profitability that strips out non-cash items, was 39.8 billion won ($29.9 million), down 45% year over year and the lowest since the first quarter of 2021.
Concerts revenue of 44 billion won ($33.1 million) was up 74.5% year over year. Although that was the biggest year-over-year increase of any category, the first quarter of 2023 was abnormally slow. HYBE’s latest quarter was on par with 45.3 billion won ($34.1 million) of concert revenue in the fourth quarter of 2021, the first quarter the company had performances after COVID-19 restrictions shut down the touring industry.
Recorded music, the company’s largest segment at 40.2% of total revenue, fell 21.3% to 145.1 billion won ($109.2 million). HYBE successfully debuted two new groups during the quarter. Sparkling Blue, the debut EP by PLEDIS Entertainment boy band TWS, sold 260,000 units in its first week for and accumulated 500,000 units in the first nine weeks of release. Girl group ILLIT’s EP, Super Real Me, released through BELIFT LAB, sold 380,000 units in its debut week and reached the 500,000-unit mark in just four weeks. The single “Magnetic” debuted at No. 91 on the Billboard Hot 100 singles chart in April.
Merchandising and licensing fell 11.9% to 60.7 billion won ($45.7 million). Contents fared worse, dropping 29.8% to 61.1 billion won ($46 million).
Weverse, HYBE’s social media platform, saw its monthly active users (MAUs) decline for the second quarter. After reaching a peak of 10.6 million MAUs in the third quarter of 2023, MAUs fell to 10.1 million in the fourth quarter and 9.2 million in the first quarter. Both average revenue per paying user and payment amount fell below levels reached in 2022 and 2023; HYBE does not provide specific numbers for either metric.
Just days after launching an audit into subsidiary label ADOR and asking its CEO, Min Hee-jin, to exit, the Korean entertainment giant says it will report the executive to police.
The announcement came ahead of Min holding an emotional press conference in Seoul, where she refuted allegations of usurping ADOR girl group NewJeans‘ management, shared conversations she had with the group’s members and addressed other rumors as the Billboard 200–topping girl group prepares to launch its new single, “Bubble Gum.”
On Thursday (April 25) local time in Korea, HYBE shared the following statement with the media as an update to its audit regarding ADOR, CEO Min and other executives at the label:
Trending on Billboard
On April 25 KST, HYBE announced that the company will report CEO Min Hee-Jin of its subsidiary label ADOR to police for a breach of trust and other related allegations today.
HYBE secured substantial evidence to prove that Min deliberately led the plan to take over management control of the subsidiary, through the audit process. The evidence included detailed discussions that Min has ordered the ADOR management to find ways to pressure HYBE into ultimately selling ADOR’s shares. One of the audited parties submitted information assets to seize the management of ADOR and to attempt to contact external investors. The auditee also admitted to creating the documents to attack HYBE.
In the meantime, HYBE will continue to provide attentive mental and emotional care to the company’s artist NewJeans and best support for their upcoming comeback. The company will meet legal representatives of the respective members as soon as possible to discuss the plan to protect the act.
As previously reported, Min earned an 18% stake in ADOR in late 2023, when HYBE moved from full ownership of the label to 80%, with the additiona 2% owned by other company executives.
Following Min Hee-jin and ADOR going on the offensive with interviews and multiple statements to various Korean media alleging that HYBE has been exploiting ADOR and allowing NewJeans’ concept to be plagiarized, the K-pop industry veteran held a press conference with her lawyers that lasted more than two hours on Friday.
[embedded content]
According to the Korea JoongAng Daily‘s minute-by-minute report, Min arrived for the 3 p.m. press conference casually dressed in a baseball cap and simple T-shirt to be greeted by a slew of photographers — so many that at one point, the executive said she wouldn’t be able to speak if the camera flashes continued. Throughout the two-hour event, Min proclaimed her innocence, shared her disagreements with HYBE’s leadership, rebutted their conclusion that she wanted to seize NewJeans’ management and tried to shift focus back to her original internal complaint regarding plagiarism. Under Min’s leadership, ADOR previously claimed that HYBE’s newest act, the five-member girl group ILLIT formed under another subsidiary, BELIFT LAB, is copying NewJeans.
While weaving through stories with her lawyers alongside her, an at-times sobbing Min also addressed rumors regarding current and past HYBE artists including BTS, GFRIEND, LE SSERAFIM and more.
During the first half hour of the presentation, Min shared text message chats she claims she had with HYBE founder/chairman Bang Si-hyuk and HYBE CEO Park Ji-won. These alleged texts, according to Min, show Bang’s interest in buying Source Music, where Min previously worked, to launch a girl group. She also revealed that she recruited NewJeans’ eldest member, Minji, from Source’s trainee pool for ADOR. Min further claimed that HYBE’s debuting LE SSERAFIM under the Source label led to NewJeans being cast aside and created internal issues.
In a 2022 Billboard interview shortly after NewJeans’ debut, Min described her move away from Source Music by noting that “there would have been a number of different challenges involved” at the time and that she instead focused on creating “an independent label,” which became ADOR. “ADOR is a label that started with guaranteed autonomy, so it has no ties with HYBE’s management,” Min said. “They actually didn’t have any knowledge about anything we were going to release up until the first music video was released.” In the same interview, a question regarding Minji’s time as a trainee under Source Music was never addressed by press time.
After the first hour of the press conference, Min added claims that her contract terms with HYBE were unfair, though her lawyer said the details of the contract are confidential. Min also alleged that HYBE spun her contacting a law firm as external consulting, creating the current situation. Min pointed to multiple misunderstandings, including those that arose from jokes between her executive team, and added that HYBE still owes her money.
Through tears, Min revealed more text messages claiming that a NewJeans member’s mother called her to encourage her to speak out. During the Q&A with the press in attendance, Min contended that NewJeans members Hanni and Haerin have specifically reached out to her in support.
Separately, two NewJeans members have made public appearances amid the K-pop power struggle. Minji attended a Chanel pop-up store opening on Tuesday (April 23) in Seoul, while Danielle attended different fashion events on the Tuesday and Wednesday, though neither has made public statements on the matter.
Throughout the press conference, Min also touched on BTS (refuting an online rumor that she claimed the Billboard chart-toppers had copied her ideas), GFRIEND (saying she had nothing to do with the group’s abrupt 2021 disbandment soon after her formal start at HYBE) and took several shots at the teams behind ILLIT by sharing how the members are innocent but “it’s the adults that have sinned…copied all the formulas that we had with NewJeans,” from the concept to fashion collaborations, as reported by the Korea JoongAng Daily.
Just as HYBE did in its statement, Min ended her press conference by re-focusing attention on NewJeans. Despite the clash, the K-pop group’s upcoming music video for “Bubble Gum” is still set to premiere on Friday (April 26) via the HYBE Labels YouTube channel.
While HYBE has successfully expanded into an entertainment powerhouse built around its multi-label structure, the Korean corporation says it has investigated one of its crown jewel agencies, ADOR, the home of chart-topping girl group NewJeans.
Since its launch in late 2021, ADOR (an acronym for the phrase All Doors One Room) has been led by Min Hee-jin, a veteran creative in the K-pop industry who famously helped develop the scene’s penchant for artistic concepts and craft era-defining K-pop acts like Girls’ Generation, SHINee, f(x), EXO and Red Velvet during her tenure at SM Entertainment. After Min’s exit from SM, she joined then–Big Hit Entertainment in 2019 as chief brand officer and helmed the company’s rebrand into HYBE. During the 2021 rebrand reveal, HYBE announced Min as CEO of a new label, ADOR, with plans to debut the girl group that would become NewJeans.
Earlier this month, a report by Korea’s Financial Supervisory Service revealed that Min controlled an 18% stake in ADOR since late last year. HYBE previously had complete control of the label but now boasts 80%, with an additional two percent owned by other company executives. HYBE reportedly invested 16.1 billion won (about $11.7 million) to establish ADOR.
Trending on Billboard
Less than two years into NewJeans’ history-making debut, HYBE is asking Min to step down from ADOR after an audit of her, the label and its executives.
HYBE confirmed to Billboard that on April 22, the company “invoked the right to audit CEO Min Hee-Jin and top executives of its subsidiary label ADOR.” HYBE said it “called them to summon a shareholder meeting and sent an official letter to ask CEO Min to step down.” HYBE added that it could not provide further information on reason or reasons for the audit or why it is asking Min to step down.
Since news of the audit went public, ADOR and Min Hee-jin have gone on the offensive in the Korean media.
In a series of statements, ADOR claims HYBE’s newest act, the five-member girl group ILLIT under another subsidiary, BELIFT LAB, is copying NewJeans. With HYBE founder and current chairman Bang Si-hyuk involved in ILLIT’s debut album Super Real Me (No. 6 on the World Albums chart after three weeks), ADOR claims both BELIFT LAB and HYBE are complicit in the alleged infringement. ADOR says they raised the copycat issue internally a month ago but did not receive answers, claiming now that HYBE’s attempt to remove her as CEO is a result of bringing up the alleged problem. Min gave an additional interview to Korean outlet Sports Ilgan to fire back at rumors she was trying to break ADOR away from HYBE or seek outside investors to go independent with her 18% stake.
Min Hee-jin has not responded to Billboard‘s request for comment.
Min and ADOR quickly spun NewJeans into a slew of record-setting achievements including a No. 1 album on the Billboard 200 with 2023’s Get Up just a year after the debut, five Hot 100 hits to their name, a well-received live debut in the U.S. at Lollapalooza last year, plus honors like Top Global K-Pop Artist at the 2023 Billboard Music Awards and the first K-pop act honored as Group of the Year for Billboard‘s Women in Music. In 2023, Min earned a spot on Billboard‘s International Power Players and Women in Music executive lists and also collaborated with V of BTS on the overall production of his debut solo album, Layover, which peaked at No. 2 on the Billboard 200 in September.
The K-pop power clash comes as NewJeans prepares for several releases including new singles “Bubble Gum” and “How Sweet,” with the former’s music video scheduled to drop April 26 on the HYBE LABELS YouTube channel. NewJeans is also preparing their first-ever Japanese singles “Supernatural” and “Right Now,” as well as a new album planned for the second half of 2024.
Elsewhere in the HYBE universe, ILLIT’s “Magnetic” is currently at No. 91 on the Hot 100, making it the first debut single from a K-pop act to enter the ranking. New music from HYBE artists like Zico (under HYBE LABELS’ KOZ Entertainment) and SEVENTEEN (PLEDIS Entertainment) are also coming this month. Historically, internal company issues can affect K-pop music or content releases, but no updates have been shared as of press time.
HYBE shares jumped 17.5% to 230,000 won ($170.84) this week following news that the company struck a 10-year partnership with Universal Music Group (UMG) that calls for the label to distribute HYBE’s physical and digital music and put its artists on HYBE’s Weverse social media platform. HYBE America CEO Scooter Braun will oversee all promotional and marketing collaborations between the two companies. After dropping 9.1% over the previous four weeks, the announcement brought the South Korean company’s year-to-date deficit to just 1.5%.
Another K-pop company, SM Entertainment, was one of five music companies to post double-digit stock gains this week, with its shares rising 14% to 87,800 won ($65.22). On Wednesday (March 27), the company announced the appointment of Tak Young-jun to co-CEO alongside existing CEO Jang Cheol-hyuk. SM Entertainment also announced a 1,200-won ($0.89) per-share dividend totaling 28.1 billion won ($20.8 million), an amount equal to the prior year’s dividend.
Trending on Billboard
The 20-company Billboard Global Music Index rose 1.9% to a record 1,752.24 as 16 stocks posted gains, only three lost ground and one was unchanged. Even with an unusually high number of winners, the float-adjusted index, which gives greater weight to more valuable companies, fell this week because two of the three losers are among the most valuable music companies. Spotify, which has a market capitalization of roughly $50 billion, fell 0.4% to $263.90. Live Nation fell 0.2% to $105.77; its market capitalization is about $24 billion. Two more of the index’s largest companies had gains under 2%: UMG rose 1.6% to 27.88 euros ($30.11) and Warner Music Group (WMG) improved 1.4% to $33.02. Another valuable member of the index, Chinese music streamer Tencent Music Entertainment, rose 2.2% to $11.19.
Hipgnosis Songs Fund shares climbed 13.5% to 69 pence ($0.87) after the company’s board of directors released an internal report on Thursday (March 28) that showed the fund’s investment advisor, Hipgnosis Song Management, “materially” overstated annual revenue and misled investors about the amount of control exercised over the rights in its portfolio. The negative news was welcomed by investors who have taken issue with the company’s accounting practices and portfolio valuation. Hipgnosis shares traded as low as 52.9 pence ($0.67) on March 4 but have rebounded since the company overhauled its board and hired Shot Tower Capital to put together the due diligence report.
CTS Eventim, the German live events promoter and ticketing company, rose 11.1% to 82.45 euros ($89.05) after releasing earnings for the fourth quarter and full-year 2023 on Tuesday (March 26). The company expects “a moderate rise” in total revenue in 2024. Demand is “rising continuously,” CEO Klaus-Peter Schulenberg wrote in the annual report, and the company expects the recent decline in inflation to provide “new, consumption-driven impetus for growth in the future.”
Believe shares rose 7.2% this week to 16.92 euros ($18.27) following the company’s announcement that it will accept a formal offer from WMG by April 7. WMG revealed its interest in Belief on March 7 and said it would be willing to pay at least 17 euros ($18.36) per share. A consortium that includes Believe CEO Denis Ladegaillerie has lined up a large block of shares and is willing to offer 15 euros ($16.20) per share for the remainder. With Believe shares currently trading so close to WMG’s soft bid, investors apparently don’t think the consortium’s original offer is going to suffice.
Stocks were mixed as the trading week was shortened by some exchanges’ closure for Good Friday. In the United States, the Nasdaq composite fell 0.3% to 16,379.46 and the S&P 500 rose 0.4% to 5,254.35. In the United Kingdom, the FTSE 100 rose 0.3% to 7,952.62. South Korea’s KOSPI composite index fell 0.1% to 2,746.63. China’s Shanghai Composite Index dropped 0.2% to 3,041.17.
Universal Music Group (UMG) has expanded its relationship with HYBE to include the exclusive digital and physical distribution rights to the company’s artists for the next 10 years. UMG will also continue to collaborate with HYBE’s Weverse to onboard more UMG signees to the superfan platform.
Scooter Braun, CEO of HYBE America, will take on new responsibilities with the new agreement. The SB Projects founder and former manager to Ariana Grande, Demi Lovato and J Balvin will now oversee all promotional and marketing collaborations between HYBE and UMG in North America.
Notably, this exclusive distribution deal does not include social media sites YouTube, Meta and TikTok, allowing HYBE artists to remain on the short-form video app despite UMG’s current licensing feud with TikTok.
Trending on Billboard
The announcement builds upon the already established relationship between HYBE and UMG which started in 2017 with a partnership that gave UMG distribution rights to HYBE’s BTS in Japan. In late 2021, HYBE expanded the deal to grant UMG’s Geffen Records distribution rights for BTS in the United States and other regions, moving their U.S. distribution over from Sony Music’s Columbia Records.
Geffen and HYBE also worked together via a joint venture to put together the Netflix and YouTube streaming documentary series The Debut: Dream Academy in which the two music companies work together to form an American girl group using HYBE’s K-pop methodology.
Last year, BMG also moved some of its distribution to Universal Music. In October, the company announced that it would move its physical distribution to UMG’s Commercial Services divison, starting in the second quarter of 2024. It will be fully transitioned by the end of 2024.
“A partnership of this magnitude only comes together when both sides are equally committed to continued growth,” says Bang Si-Hyuk, Chairman of HYBE. “UMG is an iconic music company and together with HYBE, the potential is endless. We are certain that this will expand our global footprint, while benefiting our fans, artists, and labels.”
“Chairman Bang, Scooter Braun and Jiwon Park have brought an innovative and progressive vision to the industry that underscores music’s global power,” adds Lucian Grainge, Chairman and CEO of Universal Music Group. “With the opportunities in engaging the superfan via their groundbreaking Weverse model, we’re thrilled to grow and expand our platform business collaboration as we evolve together leading the music industry’s evolution.”
“This incredible partnership between our companies will ensure mutual benefits and collaborations for the fans, teams, artists, and labels around the world,” says Braun, CEO of HYBE America. “The opportunity created here not only allows us to help our current roster, but grow opportunities for independent artists and labels globally. I’ve known and respected Sir Lucian Grainge for many years, and alongside chairman Bang and HYBE CEO Jiwon Park, we look forward to the undeniable opportunities that will come from this partnership as we together grow the music industry’s future.”
The minds behind acts like BTS and BLACKPINK know a thing or two about minting global stars — and Western companies are starting to take note.
K-pop giant HYBE purchased 868,948 shares of SM Entertainment, the company behind such acts as aespa and NCT 127, for approximately 104.3 billion won ($78 million) after SM founder Lee Soo-man exercised an option to sell the shares, HYBE announced in a Feb. 28 regulatory filing. The purchase concludes a transaction that briefly created a […]
Strong album sales by K-pop groups Seventeen, Tomorrow X Together and New Jeans helped Korean music company HYBE enjoy record revenue of 2.18 trillion won ($1.67 billion), up 22.6%, in 2023, according to the company’s latest earnings report.
HYBE’s album sales from its Korean artists nearly doubled to 43.6 million last year from 22.2 million in 2022, while album sales accounted for 44.6% of total revenue, up from 31.1% the prior year. In Korea, Seventeen led the way with 15.9 million album sales (HYBE’s earnings release cited numbers from Circle Chart, which tracks sales only in Korea). Tomorrow X Together sold 6.5 million albums and NewJeans sold 4.3 million albums.
Streaming revenue got a boost from the company’s acquisition of Atlanta-based hip-hop label Quality Control in February 2023. Revenue from HYBE’s U.S. record labels — Quality Control as well as Big Machine Label Group — grew 70% to 150 billion won ($114.9 million) and accounted for nearly half of HYBE’s streaming revenue growth for the year. Streaming revenue from the company’s Korean labels outside Korea also performed well last year, increasing 102% to 107 billion won ($81.9 million). Within Korea, streaming revenue from those labels increased only 64%, however, to 41 billion won ($31.4 million).
Trending on Billboard
Concert revenue increased 39.1% to 359.1 billion won ($275 million) and accounted for 16.5% of total revenue, up from 14.5% in 2022. Much of that was due to volume, as HYBE had 125 concerts from seven touring artists in 2023 compared to 78 concerts from four touring artists in 2022.
Most other revenue sources declined year-over-year. Ads and appearances fell 12.3% to 141.9 billion won ($109 million). Merchandise and licensing dropped 17.7% to 325.6 billion won ($249 million). Content sank 15.1% to 289.9 billion won ($222 million). One bright spot was fan clubs, which increased 35.9% to 91.2 billion won ($70 billion).
Company-wide gross profit improved 19.7% to 1 trillion won ($773 million), lower than revenue’s 22.6% growth rate because cost of sales rose 25.2% (gross profit is sales minus cost of sales). Sales, general and administrative expenses increased only 17.7%, however, which helped operating profit improve 24.9% to 295.8 billion won ($227 million). Net profit soared 288% to 186.5 billion won ($143 million).
Korea’s share of HYBE’s revenue increased from 33% in 2022 to 36% in 2023. Japan’s share of revenue also increased, from 28% to 31%. North America fell from 32% to 26% despite the addition of Quality Control.
The Weverse social media platform ended the year with 10.1 million monthly active users (MAUs) in the fourth quarter, down from an all-time high of 10.6 million MAUs in the third quarter but well above the 8.5 million MAUs in the fourth quarter of 2022. Weverse finished the year with 122 artist communities, up from 71 at the end of 2022.