Tensions continue to rise over HYBE’s NewJeans controversy, with the new CEO asserting that the company "adheres to the rules and focuses on precise management."

Jason Jaesang Lee has officially taken over as CEO of HYBE, as confirmed by a recent regulatory filing. He was appointed to the role during a shareholder meeting on September 12, succeeding former CEO Jiwon Park, a leadership transition first reported in July.

Lee's start at the South Korean entertainment giant has been marred by a public relations issue. Following the shareholder meeting, he addressed a recent demand from K-pop group NewJeans, who have called for the reinstatement of Min Hee-jin as CEO of their sublabel ADOR by September 25.

This request was made during an unexpected live stream on September 11, marking a rare instance of a K-pop group publicly challenging its management.

In August, HYBE, which holds an 80% stake in ADOR, dismissed Min Hee-jin as CEO of the label due to a dispute over claims that Min was trying to gain control of ADOR. Following Min's removal, HYBE reorganized ADOR by splitting production and management duties, and proposed that Min take on the role of head producer. Min declined the offer.

“HYBE is a company which follows the rules and pursues precision management.” Jason Jaesang Lee, speaking after shareholders meeting

According to South Korean media reports, Jason Jaesang Lee, HYBE’s new CEO, addressed the issue following the shareholders meeting on Thursday. He assured that the company would handle NewJeans’ ultimatum “calmly.”

Lee stated, “It will take some time, but we will adhere to the regulations and respond in a measured manner.” He further emphasized, “HYBE is committed to following the rules and practicing precise management. History shows that those who abide by the rules often emerge victorious.”

There is growing speculation in South Korean media that HYBE might face the loss of NewJeans, one of its most profitable girl groups.

During a surprise livestream on Wednesday evening (September 11), the members of NewJeans—Minji, Hanni, Danielle, Haerin, and Hyein—issued an ultimatum to HYBE, demanding the reinstatement of Min as CEO of ADOR within two weeks.

Minji expressed during the livestream, as translated by the Korea JoongAng Daily: “We hope HYBE makes the wise decision to reinstate Min Hee-jin as CEO of ADOR by September 25. The ADOR we envision is one where Min Hee-jin leads both music production and company management. This request is our way of seeking a harmonious relationship with HYBE.”

Hyein also shared her thoughts, as reported by the Korea Times: “We learned about the dismissal of the ADOR CEO through the news on the same day it was announced. It was so unexpected and difficult for us to process. As artists under HYBE, this unilateral decision has made us feel disrespected.”

The group did not specify their next steps if HYBE does not comply with their demand. South Korean media suggests that such ultimatums can often precede legal action to nullify contracts.

Entertainment lawyer Chong Kyong-sok explained to the Korea Times: “The two-week deadline does not hold legal weight but may be a practical timeframe for resolving legal issues, as it generally takes a company a week to 10 days to make internal changes and draft legal documents. This deadline could signal that if their demands are not met, they are preparing to take action.”

Should NewJeans depart from ADOR, the label would be left without any artists and would forfeit a key revenue source. Last year, NewJeans generated KRW 110.3 billion (approximately USD $83 million), as reported by the Korea Herald.

The root of the conflict between HYBE and Min reportedly stems from Min’s belief that ILLIT, a new girl group from HYBE's Belift Lab, was imitating NewJeans' dance moves and fashion.

HYBE claims that Min’s dissatisfaction with this situation led her to allegedly attempt to detach ADOR from HYBE's multi-label structure.

Since the dispute became public in April, several anonymous YouTube channels have supported Min's claims, with some accusing ILLIT of plagiarism, including the alleged imitation of “Favorite Liar,” a song by the US pop-rock band The Wrecks.

“The company’s unilateral notice made us sure that they don’t respect us at all.” Hyein, NewJeans

At the end of August, HYBE initiated defamation lawsuits against seven YouTube channels and, on September 9, filed a petition with a US federal court seeking to compel Google, the owner of YouTube, to disclose the identities of the individuals behind these channels.

The ultimatum issued by NewJeans has impacted HYBE’s stock value, with Bloomberg reporting a 6.2% drop in shares during intraday trading on September 12. By the end of trading on Friday, the stock had decreased by 3%, closing at KRW 164,000 (approximately USD $123.25) per share. Despite this drop, the stock was still up 1.55% for the week. Since the dispute with Min became public in April, HYBE's share price has declined by 27%.

The K-pop industry has faced broader financial challenges this year, with JYP Entertainment’s stock falling 55% year-to-date and SM Entertainment's dropping nearly 38% year-to-date as of Friday’s market close, according to Music Business Worldwide.