This week, when the business announced a review into its powerhouse subsidiary and sought the resignation of a famous producer, shares of the South Korean agency behind K-pop sensation BTS fell nearly 10%.
The management company, ADOR, which oversees the two-year-old K-pop sensation NewJeans, a popular girl group that has topped international charts, is the subject of an audit, the agency HYBE informed AFP on Tuesday.
The agency declared that it was looking into rumors of a possible split from the parent firm, in which controlling 80 percent of the shares are held by renowned superproducer Min Hee-jin, who leads ADOR.
HYBE has “launched an audit into ADOR and sent a letter to Min demanding her resignation,” a HYBE official told AFP.
The share price of HYBE fell 7.81 percent on Monday when news of the disagreement surfaced in the South Korean press, and then fell 1.18 percent on Tuesday.
When BTS declared they will take a “hiatus” in 2022—prior to their all starting to enlist in South Korea’s mandatory military service—the company’s stock price fell. In June, vocalist Jin is scheduled to become the first member to finish the task.
According to HYBE, Min was trying to handle the female group on her own. She has a history of successfully raising K-pop bands and was also the driving force behind the founding of NewJeans.
But Min released a statement Monday calling the accusation “dumbfounding” and saying that tensions with HYBE began after she accused another of their subsidiaries of copying NewJeans.
“ILLIT has been copying NewJeans in entertainment activities ranging from hairstyle, makeup, dress, choreography, photography, videos and event appearances,” she said, referring to a new girl group debuted by another HYBE subsidiary label.
In a statement received by AFP, she said that HYBE had “gravely violated” the accomplishments of NewJeans.
HYBE is in a difficult position because Min’s dismissal, as she has been dubbed “NewJeans’ mum” for overseeing all band-related matters, may jeopardize the “survival of the group,” pop culture columnist Kim Do-hoon told AFP.
Because of the peculiar entertainment industry in South Korea, where agencies rather than artists usually have all the authority, even chart-topping acts like NewJeans can experience boardroom conflicts.
“It vividly shows how vulnerable South Korea’s intellectual property is to crumbling under the K-pop’s factory-like production system when there’s a dispute like this,” Kim said.
“Removing Min from the equation… can bring NewJeans members who are still in their teens emotional damage much more than people expect.”
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