SEOUL, November 13 (AJP) - Korea's entertainment giant HYBE gained a boost — 6 percent on Thursday on high expectations for a full-member comeback of their budding and steady stars NewJeans and BTS, after the breakaway girl group hinted they would return home following an epic split last year.
The rise was more muted than the near-9 percent after-hours jump late Wednesday as the market grew cautious about whether reconciliation is real, given the deep distrust NewJeans members expressed throughout their legal dispute with parent company HYBE and ADOR.
"We are yet to confirm the other members and cannot confidently assure a full return," a HYBE official said Thursday on condition of anonymity.
ADOR, a HYBE subsidiary, posted on X on Wednesday that Haerin and Hyein had conveyed their intention to continue activities under the label in accordance with last month's court ruling, which upheld the validity of their exclusive contract through July 31, 2029.
Hours later, Minji, Hanni, and Danielle reportedly told a local outlet they too intended to return to ADOR. The company, however, said it had not been formally contacted by the three members, while the members' side claimed ADOR was not responding to their attempts to communicate.
The development follows NewJeans' loss in the first trial of their contract lawsuit. The Seoul Central District Court rejected the group's claim that a "breakdown in trust justified terminating the contract," ruling that the evidence fell short of the threshold required under Korean law.
Although their law firm, Shin & Kim, initially said it would file an immediate appeal, more than ten days have passed without a filing. The deadline is midnight Thursday. Legal experts expect the second trial to favor ADOR unless new evidence emerges.
If the members attempt independent activities without ADOR's approval, they could face heavy financial penalties. Industry estimates place potential liability at up to 600 billion won ($408 million) based on the group's average monthly earnings and remaining contract period.
In a separate ruling in May, the court granted ADOR's request for indirect compulsory execution, ordering the members to pay 1 billion won per violation for any unauthorized activity — a penalty that applies regardless of additional damages.
It remains unclear whether former ADOR CEO Min Hee-jin played any role in the latest developments. NewJeans had previously demanded Min's reinstatement as a key condition for returning to the agency. Min has since launched a new company, OOAK (One Of A Kind), and is engaged in a separate legal clash with HYBE over a put-option agreement, making any renewed partnership unlikely.
For HYBE, the clearer upside lies with BTS, who are set to resume group activities next year after completing mandatory military service. The company has signaled that BTS' formal schedule will begin in the spring.
"NewJeans' return could contribute an additional 20 to 30 billion won in annual profit from 2027 onward," Meritz Securities said Thursday, raising its target price for HYBE from 370,000 won to 380,000 won.
Hana Securities analyst Lee Ki-hoon noted that HYBE reported third-quarter revenue of 727.2 billion won and an operating loss of 42.2 billion won — well below market expectations — weighed down by around 87 billion won in one-off expenses tied to North American restructuring and the launch of new global groups. "HYBE will need to show earnings leverage next year as BTS resumes group activities," he said.
HYBE shares have surged more than 50 percent this year, though still trailing the broader KOSPI's gain of over 70 percent.
Copyright ⓒ Aju Press All rights reserved.
