K-pop girl group NewJeans / Courtesy of Ador

Is there any possibility that K-pop powerhouse HYBE and its subsidiary Ador will end their ongoing dispute over management control and find their happily-ever-after for NewJeans, one of the most bankable HYBE artists formed by Ador?

Experts say no, given that their relationship is already beyond repair.

HYBE filed a police report against Ador's CEO Min Hee-jin for alleged breach of trust on April 25, claiming that she attempted to spin off Ador from the parent.

But later that day, Min denied the allegations in a press conference, insisting that HYBE accused her after she blew the whistle internally on the alleged copying of NewJeans' formula to produce ILLIT — a girl group that debuted under HYBE's sub-label, Belift Lab, in March.

She added that HYBE has been giving NewJeans unfair treatment, prioritizing the debut of Le Sserafim — a female act represented by Source Music, another subsidary of HYBE. NewJeans arrived on the K-pop scene in July 2022, about two months after Le Sserafim's debut.

Regarding what HYBE views as her "plots" to seize control of Ador, Min characterized them as "casual talks" that she did not pursue. However, HYBE proceeded to file for permission to convene a board of directors meeting with a court, aiming to remove Min from her position in about two months.

HYBE owns 80 percent of Ador, while Min and other Ador executives collectively hold a 20 percent stake (18 percent and 2 percent, respectively). As a result, Min is highly likely to be dismissed once the meetings take place.

Ador CEO Min Hee-jin speaks during a press conference at the Korea Conference Center in Seocho District, Seoul, April 25. Yonhap

NewJeans at crossroads

Against this backdrop, all eyes are now on the future of NewJeans — the sole group launched by Ador that contributed to the company's record sales of 110.3 billion won ($80.5 million) in 2023, as reported in its electronic disclosure. This represents a more than five-fold increase from the previous year.

The financial power of HYBE, the biggest K-pop label in Korea, coupled with the creative vision of Ador's Min, are most likely to give NewJeans the brightest future. But if HYBE and Ador cannot go together, what should the quintet do?

They can choose to exit HYBE once Min gets fired and continue their musical activities under her helm. All five members — Minji, Hanni, Haerin, Hyein and Danielle — are known to have a close-knit bond with Min, the producer of the group who has the nickname, "mother of NewJeans." Min said during a press conference in April that NewJeans is not just an idol group, but also a source of great comfort for her. She added that she had conversations with the members' parents, suggesting that they are supportive of her position.

Numerous fans of NewJeans also hope it can keep its musical journey going with Min, believing that she is the best producer who can propel its career forward with her aesthetic sense and affection for the members.

A teaser for girl group NewJeans' upcoming release, "How Sweet" / Courtesy of Ador

Unfortunately, experts say this scenario is unrealistic.

NewJeans is currently under contract with HYBE, so it should pay a penalty if it terminates the deal. Considering that the members still have about five years remaining in their contract, their penalty could reportedly go even above 300 billion won.

Unless Min can prove her claim that HYBE has mistreated the group, NewJeans may have to bear a heavy financial burden.

"If the group leaves HYBE, it needs to look for new investors who can support it after paying a hefty penalty," Kim Jin-woo, head researcher at Circle Chart that collates data to rank music releases, told The Korea Times.

"That is not going to be a walk in the park ... Plus, based on Min's contract with HYBE, she is prohibited from working for another company until she sells her full stake. It is unclear when she will be able to do so and this implies that she cannot work with NewJeans anytime soon even if both of them depart from HYBE."

Music critic Han Dong-yoon echoed that sentiment.

"Let's say NewJeans can find new investors. But it will still take several years for the team to pay their debts, so they are more likely to stay with HYBE," he noted.

Ador CEO Min Hee-jin, third from left, poses with the members of girl group NewJeans. Korea Times file

NewJeans without Min

NewJeans will not witness a dramatic decline in its global popularity even without Min, the experts added.

After debuting with its self-titled EP, NewJeans unleashed a string of hits such as "Hype Boy" (2022) and "Ditto" (2022). Known for being "carefree, laid-back and natural," it is one of the marquee names in the music scene, with four of its songs, including "Super Shy" (2023), reaching 500 million streams on the world's largest streaming platform, Spotify.

"NewJeans already built solid fan bases worldwide," Han explained. "Although Min played a vital role in differentiating the group, it will not suddenly lose its unique edge following her departure."

Kim added that their breakup will have some influence on the quintet in the beginning, but it will soon be able to recover, since HYBE has knowledge and experience in cultivating different K-pop stars.

"NewJeans will be able to remain as NewJeans as its followers hope," he said.

HYBE after feud

Bang Si-hyuk, chairman of K-pop powerhouse HYBE / Courtesy of HYBE

The ongoing conflict between HYBE and Ador is viewed by many as a lose-lose situation for both. Even if HYBE succeeds in dismissing Min, it has already faced a major financial setback, losing 1.2 trillion won in market capitalization following the row.

Its reputation has also been tainted after Min laid bare diverse problems linked to its multi-label system during a press conference. HYBE currently has 11 sub-labels under its roof, representing some of the most celebrated K-pop acts, including BTS, Seventeen, Tomorrow X Together and ENHYPEN. It even debuted three girl groups — NewJeans, Le Sserafim and ILLIT — between 2022 and 2024.

Min, however, insisted that HYBE Chairman Bang Si-hyuk should get his hands off on music production.

"He has been producing for Big Hit Music, Source Music and Belift Lab, but as a chairman, he is supposed to look after all sub-labels," she said. "Once a chairman spearheads producing, there are people who voluntarily follow and obey ... We can only compete autonomously without Bang's producing."

The HYBE-Ador saga showed that the HYBE's current system can trigger an internal feud while sparking a debate over discrimination and imitation.

K-pop powerhouse HYBE's headquarters in Yongsan District, Seoul / Yonhap

"Global music companies like Universal Music Group also have labels under their umbrella, but they all center on different music genres to promote diversity and attract more consumers," Kim explained.

"But in HYBE's case, its sub-labels are all about K-pop, so they should go head-to-head with one another. Most recently, it was announced that both NewJeans and BTS' RM will put out their albums on the same day, May 24."

This is why HYBE needs an overhaul, experts say. For now, its top priority is to guarantee creative autonomy of its sub-labels, facilitate communication among them and re-establish its identity as a music company.

"HYBE should not interfere with the music production of its sub-labels so that they can lead their own musical directions," Han stressed. "Its role is to monitor their business activities."

He added, "It might also need a system where different sub-labels can cooperate by gathering together and sharing their work updates. On top of that, as a music company, it has to contemplate different ways for each of their singers to improve and stand out instead of only being sales-driven."

Kim agreed, saying, "In my eyes, it looks like HYBE's focus is currently on business, not music. But it should not forget its core value and pour more effort in training and developing its artitsts."