Market capitalization of 1 trillion won ‘evaporated’ due to civil war in Hive, “K-pop growing pains”

The truth battle between ‘Hive’ and Min Hee-jin, CEO of Adore, New Jeans’ agency, continues.

Hive also submitted a rebuttal to Representative Min’s press conference.

Not only Hive, but also the stock prices of domestic ‘entertainment companies’ fell all at once.

This is reporter Lim So-jeong.

◀ Report ▶

Adore CEO Min Hee-jin claims that put forward the frame of ‘seizing management rights’ to vote for her.

[민희진/어도어 대표(지난 25일)]
″It’s just a story about us playing around and imagining things. Actually, I’m really curious about the intention of suddenly disguising me as if I were suffering from a mental illness.”

In response to this, Hive issued an official rebuttal.

The vice-president who had a related conversation with CEO Min pointed out that he is a key executive who can check all of the company’s financial information, and that this conversation cannot be considered a joke.

He also denied CEO Min’s claim that the financial compensation was small and the shares were tied up.

Hive explained that CEO Min had the highest salary within the company, and that it was possible to cash out his shares and start a business in the next year.

As the two sides continued their war of revelations, Hive’s stock price plummeted.

The market capitalization that evaporated in five days amounted to a whopping 1.2 trillion won.

Concerns about Hive’s decline in corporate value are spreading across ‘entertainment stocks’.

That’s how much influence it has had.

Since its listing in 2020, Hive has expanded its size by additionally acquiring Source Music, Pledis, and Adore.

There are now 76 affiliates, including 11 labels and 65 companies.

Although it has grown rapidly with the so-called “multi-label” system that guarantees originality, it has been pointed out that it has shown limitations in introducing management methods typical of large corporations.

[김정섭/성신여대 문화산업예술학과 교수]
″It was revealed that there were inadequacies in some coordination issues between headquarters and affiliates, human resource management issues, and crisis management issues. Innovation is needed in business management.″

Foreign media outlets are focusing on this situation, saying, “K-pop, the world’s most popular and profitable music industry, is experiencing growing pains due to a power struggle.”

This is Lim So-jeong from MBC News.