HYBE's stocks plummet after Min Hee Jin shows willingness to compromise

Hybe

HYBE Corporation, the powerhouse behind some of K-pop's biggest acts, has been experiencing a significant decline in its stock value. The downturn is linked to the ongoing feud with ADOR’s CEO Min Hee Jin,

coupled with widespread criticism regarding the management of its

artists and controversial associations with executives such as Scooter

Braun and Lucian Grainge.

Hybe

The financial struggles of HYBE became particularly apparent in May

2024. On May 21, KST, HYBE's stock closed at ₩190,000 KRW

(approximately $139 USD). The following day, the price dropped further to ₩187,000 KRW (around $137 USD). These figures are alarmingly close to the lowest value recorded in 2024, which was ₩186,000 KRW (about $136 USD) on March 7.

The conflict between HYBE and Min Hee Jin, CEO of its subsidiary ADOR,

has been a major contributor to the stock plummet. The feud reached a

critical point when Min Hee Jin won an injunction that prevented HYBE

from ousting her, disrupting HYBE’s plans to leverage its 80%

shareholder voting rights against her.

Beyond internal conflicts, HYBE has faced harsh criticism over its

handling of artists. Fans and industry observers have raised concerns

about the company’s management strategies, which some believe

negatively impact the well-being and careers of its artists.

Additionally, HYBE's association with controversial figures like

Scooter Braun, known for his disputes with high-profile artists, and

Lucian Grainge, has further tarnished its reputation.

In a surprising turn of events, HYBE’s fortunes showed signs of

improvement following a press conference held by Min Hee Jin on May

31, 2024. During the conference, Min expressed her willingness to

reconcile with HYBE, signaling a potential end to the contentious

feud. She emphasised her openness to compromise, which appears to have

positively influenced investor confidence.

The impact of Min Hee Jin's press conference was almost immediate. At

2:47 PM KST, just 17 minutes after the press conference began, HYBE's

stock price surged to ₩199,000 KRW (approximately $145 USD), up from

₩193,000 KRW (around $140 USD) shortly before the press conference. By

the end of the day, at 5:07 PM KST, the stock had further risen to

₩200,000 KRW (about $146 USD).

While the exact reasons for HYBE's fluctuating stock prices can be

challenging to pinpoint, the timing of Min Hee Jin's conciliatory

press conference suggests it played a significant role in the recent

uptick. As HYBE navigates its internal challenges and external

criticisms, the company’s ability to manage these issues will likely

continue to influence its market performance. For now, investors and

fans alike will be watching closely to see if HYBE can sustain this

positive momentum and stabilise its financial standing.