HYBE Shares Drop After Ruling Against Executive's Ouster

By Kwanwoo Jun

HYBE's shares closed lower as a legal ruling related to an in-house dispute weighed on the K-pop entertainment company.

Shares of the South Korean label behind boyband BTS fell 2.0% on Friday to 200,000 won ($145.32), underperforming the benchmark Kospi's flat close.

HYBE's retreat came after a Seoul court ruled late Thursday against the company's bid to oust the head of its sublabel Ador after an internal dispute.

HYBE on Friday kept Ador Chief Executive Min Hee Jin in her position--in line with the court ruling--but dismissed two of her confidants from the Ador board, according to local media reports that cited Min's legal representatives.

HYBE wasn't immediately available for comment. An attempt to reach Min for comment was unsuccessful.

The dispute was first made public last month, when HYBE launched an internal audit of Ador, a small label best known for managing new K-pop girl group NewJeans, after accusing Min of breaching trust and seeking to acquire the unit. HYBE owns 80% of Ador, while Min holds an 18% stake, according to local media reports.

Min denied the HYBE claim and sought an injuction against the company's attempt to dismiss her from the Ador board. The stock has lost more than 10% since tit-for-tat accusations began.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

May 31, 2024 07:10 ET (11:10 GMT)

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