HYBE Faces Crisis as NewJeans Impact Leads to Stock Plummet and Bang Si-hyuk’s 400 Billion Won Exposure

HYBE Faces Stock Drop Amid NewJeans Exit and Financial Controversy

As of noon on November 29, HYBE’s shares were valued at 197,700 KRW (approximately 141 USD), reflecting a decline of 2.85% from the previous day. After the market opened, the stock price experienced a significant drop, plummeting 6.63% to a low of 189,300 KRW (around 135 USD) during early trading hours.

This downturn is largely linked to the overall weak performance of the domestic stock market, compounded by the unexpected announcement regarding NewJeans. The K-pop group, seen as a key upcoming revenue generator for HYBE, held an emergency press conference on November 28, where it declared that its contract with ADOR would terminate at midnight on November 29.

In addition to these developments, HYBE’s founder and chairman, Bang Si-hyuk, is facing scrutiny due to a financial controversy. Reports have surfaced indicating that Bang secured close to 400 billion won (approximately 286.6 million USD) in investment earnings linked to HYBE’s initial public offering (IPO) four years ago, facilitated through a private equity agreement.

Crucially, this agreement allegedly was not disclosed to the Korea Exchange during the IPO appraisal process, nor was it included in the filings made to the financial regulatory authorities.

In light of these allegations, HYBE has responded, stating, “During the preparation for the IPO, the company provided the shareholder agreement to the IPO underwriters, who reviewed it in accordance with relevant laws. We assert that there has been no legal breach in the IPO process.”

The unfolding situation presents additional hurdles for HYBE as it grapples with the ramifications of NewJeans’ departure alongside the financial scrutiny surrounding its leadership.

For further details, refer to the original report on Daum.

Additional context is available through this source and images.