Shares of Hybe (352820.KS), South Korea's largest K-pop entertainment company, rose on December 29 following news that its subsidiary Ador terminated its exclusive contract with NewJeans member Danielle. The share price gain reflects improved investor sentiment as risks associated with the prolonged NewJeans dispute were seen as partially resolved.
According to the Korea Exchange, Hybe closed at 320,000 won, up 1.75% from the previous trading day. The stock opened at 314,500 won and reached an intraday high of 322,500 won.
Ador issued an official statement announcing the termination of its exclusive contract with NewJeans member Danielle. "We have notified Danielle of the termination of her exclusive contract today, as we have determined that it is no longer possible for her to continue as a NewJeans member and Ador artist," the company said. "We plan to pursue legal action against one family member of Danielle who bears significant responsibility for causing this dispute and for the departure and delayed return of NewJeans, as well as against former Ador CEO Min Hee-jin."
Previously, all NewJeans members had demanded termination of their exclusive contracts citing a breakdown in trust, but the court rejected this claim. The court reaffirmed that the exclusive contracts between Ador and NewJeans members remain valid until July 31, 2029.
The decision is seen as partially easing uncertainty surrounding Hybe. Analysts noted that the prolonged NewJeans dispute had weighed on the stock price, and the reduction of risk alone was viewed as a positive signal by the market.
The medium- to long-term earnings outlook also appears bright. "Hybe's projected operating profit for 2026 is 514.9 billion won, a 622% increase from the previous year," said Hwang Ji-won, an analyst at iM Securities. "We expect the operating profit margin to recover to the 10% range."
The full reunion of BTS next year is cited as a key catalyst. "Currently, the most likely scenario is that a new album will be released in March, followed by a world tour starting in April," Hwang said. "We expect an audience of approximately 3.5 million to 4 million people, with higher ticket prices anticipated due to expanded North American and European tour dates and pent-up demand."
Hwang added, "Considering the actual tour scale along with structural growth in the merchandise segment, album and music sales, content revenue from documentaries, VOD and concert films, and online live streaming performance, there is potential for further earnings upgrades."
