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Min Heejin & New Jeans Getting Recruited
🕑 Added 2024-11-05 19:22:31 +0000 UTCsource: https://dealsite.co.kr/articles/129239/075033
Several KOSDAQ-listed companies are reportedly seeking to recruit former ADOR CEO Min Hee-jin and the artist group New Jeans, drawing significant market attention. With HYBE effectively rejecting an ultimatum related to its artists, the possibility of Min and New Jeans transferring to a new company is gaining traction. However, some experts caution that these companies may be overlooking potential contingent liabilities, such as transfer penalties.
According to industry sources on the 8th, numerous listed companies are conducting thorough reviews aimed at recruiting former CEO Min and New Jeans. These reviews reportedly include assessments of the potential penalties New Jeans might incur if they transfer from ADOR or from ADOR’s largest shareholder, HYBE. An industry insider stated, “Several companies are working to recruit former CEO Min and New Jeans simultaneously, though the timing and specifics of the process remain undetermined.”
Market analysts suggest that companies reaching out to New Jeans are attracted by ADOR’s increasing revenue, which has gained substantial momentum due to New Jeans’ activities. Last year, ADOR, which represents New Jeans, reported annual sales of KRW 110.3 billion, a 493% increase from the previous year’s KRW 18.6 billion. This surge in sales turned a 2022 operating loss of KRW 4 billion into a surplus of KRW 33.5 billion, with net income reaching a surplus of KRW 26.5 billion from a previous loss of KRW 3.2 billion.
Companies pursuing Min and New Jeans are also drawn to the group’s strong business potential. They believe that an artist generating over KRW 100 billion in annual revenue within just two years of debut could deliver sustained profits even after covering any penalties for ending their contract with ADOR. New Jeans’ high public recognition could also support these companies in launching significant entertainment ventures.
Since April, rumors have circulated that many investors might approach former CEO Min with offers if she were to leave ADOR due to conflicts with HYBE. This is the first report indicating that Min is being approached for recruitment rather than just investment support. An industry insider noted, “The companies considering recruiting them have no prior experience in the entertainment industry,” adding that this effort is “qualitatively different from supporting CEO Min’s startup as an investor.”
However, some raise concerns that the unknown size of potential penalties could pose a hurdle for companies considering the recruitment of Min and New Jeans. This uncertainty complicates the evaluation of whether such a recruitment would ultimately be beneficial.
The industry estimates the penalty for terminating ADOR’s contract with New Jeans to be in the range of KRW 300 billion to KRW 500 billion. The exact penalty would be determined through litigation or similar proceedings. If the amount exceeds KRW 500 billion, the value of recruiting Min and New Jeans could be significantly diminished.
An industry insider pointed out, “The average contract period for domestic artist groups is seven years. Considering past cases of artists leaving agencies, it may be difficult to expect sales to surpass a certain level even if New Jeans’ popularity continues to grow.” The insider added, “Since former CEO Min has also filed an injunction against HYBE regarding the reappointment of ADOR’s CEO, there’s a chance the recruitment may not proceed as planned.”
On the 27th of last month, former CEO Min filed an injunction with the Seoul Central District Court to convene an extraordinary shareholders meeting and reappoint ADOR’s executive directors, following the ADOR board’s decision to dismiss her. The hearing is scheduled for the 11th.
Currently, New Jeans is the only artist group under ADOR. Industry analysts highlight that their rapid growth has generated over KRW 100 billion in revenue for the company in just 17 months since their debut in late July 2022.
Comments
leat
actually nj can file something, i dont know what it´s called, but it will allow them to promote their music under another label while the lawsuits of their contract is still ongoing. a long time ago you mentioned it or someone else did i forgot. but there was specific things nj need to proof to the court before they can be allowed to do that. it means hybe might keep a certain % of their earnings but they can promote under their own name for the time being. can you talk about that in the next video? idk if that is still valet because they can still keep their "status" in Korean Society and gain new fans while the lawsuits is still going on. and that to me seem so strange they should not be allowed to promote. lets say they have gotten fanatical help to break their contract now, they need to look like they at least tried to stay at hybe or they will look like the villains in this scenario. that is why they keep spredning this rumors that they want to leave to get investors to help them get out. they might already know they dont stand a chance in court get out of their contract without paying. but they will go out as heros not villains so their fans can stay happy and proud of them. i see both things as possible scenarios
Arlene
I just really think if someone wants them then go ahead pay the penalties and take them. Want them as far from BTS as possible. My other thought is this may all be a ploy to make MHJ and NJ seem way more valuable than they are.
