Can HYBE wash off the stain of NewJeans' damaging guerilla livestream?

NewsJeans’ guerrilla livestream on Wednesday has made headlines, sparking calls to re-hire former ADOR CEO Min Hee Jin and investigate ADOR's parent company HYBE amid allegations revolving around labor law violations.  

On Wednesday, the girl group posted a livestreaming video on its YouTube account “nwjeans”, which is now deleted, with each member voicing their concerns over their professional futures and worries about continuing to work under an “inhumane company” such as HYBE and revealing unheard stories. 

Speaking first, the youngest NewJeans member Hyein apologised for the “surprise meeting”, explaining the crew and staff members they trusted helped set up the livestream location and broadcast system. She also said it was the group’s initiative to speak out amidst claims that Min planned the event in advance as a PR gimmick.

“We are not going to follow HYBE's every order blindly, we are more than aware that this is giving the way of our work, and that we should be treated much better than how we are right now.” 

During the livestream, NewJeans members also expressed worries about the ADOR label’s inner workings following Min's departure as CEO. The quintet demanded the company to rehire Min as ADOR’s CEO and the legal issue to be resolved. 

NewJeans member Hyein added during the livestream as quoted by the Korea Times: “We found out about the [ADORE] CEO’s dismissal the same day it was announced, through the news. It was so sudden and something none of us could have imagined. Honestly, it’s been really tough for us.”

“And as an artist under HYBE, the company’s unilateral notice made us sure that they don’t respect us at all.”

“It's really hard to believe that HYBE is truly sincere about wanting to help us to be able to continue to work with Min. Despite her being amid this legal conflict, she decided to creatively produce our future interviews in just only two months, which I think makes no sense at all," said NewJeans' Hanni during the livestream. 

“We don't want to hear all the empty words or how HYBE is going to help her, all we want is the legal issue to be resolved and our working environment to return to normal like it was before,” she added. 

NewJeans’ status in the Korean entertainment industry

In fact, NewJeans has had a significant impact within the K-pop industry as its strong album sales alongside K-pop groups Seventeen, Tomorrow X Together helped HYBE enjoy record revenue of 2.18 trillion won, up 22.6%, in 2023, according to the company’s latest earnings report.

However, NewJeans' status in the K-pop sector has been affected since April, when HYBE said that it was formally launching an audit of its label subsidiary ADOR and requesting its former CEO Min to step down, amidst claims that Min is trying to take over ADOR and NewJeans.

The ongoing feud between HYBE and Min has developed into an ongoing legal battle alongside teary press conferences, accusations of plagiarism, additional lawsuits, and both Korean and international fans fiercely taking sides.

To many of the outsiders, the controversy provides a peek into the increasingly competitive nature of the South Korean entertainment landscape. To date, Korean boy group BTS is leading the Spotify chart with 75,697,202 followers and 27M monthly listeners, according to Desimartini. 
  
On the other hand, an anonymous netizen claimed on Thursday that the group requested the Labor Ministry to probe whether HYBE breached the Labor Standards Act by bullying or harassing the NewJeans members, based on testimonies revealed during the livestream. 

In response, HYBE’s new CEO, Jason Jaesang Lee, said after the shareholders meeting on Thursday that the company will respond to NewJeans’ demands “calmly”, according to Korean media.

“It will take some time, but we will stick to regulations and respond calmly,” he said.

He added that HYBE is a company which follows the rules and pursues precision management. “Looking back, those who follow the rules always end up as the winners.”

MARKETING-INTERACTIVE has reached out to HYBE for a statement.  

The surprise video has drawn mixed reactions across social platforms worldwide. Media intelligence firm CARMA observed over 400,000 mentions across various social platforms as of 13 September. Among these, 41.1% carried a negative sentiment, while 10.5% were positive.

On one hand, supporters expressed heartbreak over the incident, empathising with what the group is going through, especially since one member, Hyein, is still a minor, said CARMA's HK GM Charles Cheung. "They viewed NewJeans as a group of teenagers pursuing their dreams, only to have those dreams seemingly thwarted by greedy commercial interests."

Conversely, some criticised NewJeans’ decision to post the livestream on the "nwjns" YouTube channel, labelling it unprofessional, he added. "They feared it could jeopardise the group’s future, potentially leading to lawsuits or even disbandment. Although the newly created channel has now been deleted, many believe it is too late, as the livestream has been backed up and re-shared across other channels," he said. 

How can HYBE mend its reputation?

The guerilla livestream definitely got netizens talking, and NewJeans likely knew it would stir things up with its fans. This could push HYBE to rethink how it’s handling Min’s absence, according to Kimberley Olsen, co-founder of digital creative agency, Yatta Workshop.

While it’s tough to say what’ll happen, the fact that the livestream was taken down adds an interesting twist—it might mean there are talks happening behind the scenes or just shows how sensitive the issue is, she said.

“Fan reactions have influenced company decisions before, so HYBE might take a step back to reconsider their stance, especially with Min’s key role in NewJeans’ creative direction and the strong support she’s getting from the NewJeans fans ‘Bunnies’.”

The livestream, to some extent, did add pressure and exposure to HYBE, said Marianne Admardatine, CEO, Burson Indonesia, "but I don’t think it will change HYBE’s decision."

To mend its reputation amidst the negative sentiments, Admardatine said HYBE should show empathy and share more information in a less defensive way. "What we see now has been occasional too corporate statements that don’t help HYBE’s position – in fact the way they release their statement made the situation worsen."

This can be done in several ways - by showing they care more about NewJeans publicly, she said. "HYBE should show that it is separating the issue with Min and NewJeans, as after all, the feud is between ADOR and HYBE at a corporate level, not NewJeans and HYBE."

"By talking to New Jeans and their parents with empathy and show concrete plans on what they can and will do to continue to grow NewJeans, after all NewJeans can grow this big, it is also due to HYBE and not Min alone," she added.

Furthermore, HYBE needs to publicly acknowledge the issues raised in the livestream by NewJeans and apologise if any missteps or mismanagement were made, according to David Ko, managing director, RFI Asia. 

An independent investigation should be conducted into the claims made by NewJeans, he added. "This is crucial in a highly scrutinised industry such as K-pop, where transparency can significantly impact public perception and artist morale."

Reviewing and updating company policies related to artist management and welfare is necessary, he said. "These policies should be aligned with the best practices within the Korean music industry and should be made public to regain trust. HYBE should commit to providing regular updates about the steps being taken to resolve the current issues. This ongoing communication should be clear and accessible to ensure stakeholders are informed."

When celebrities voice concerns publicly, it puts the company in a tricky spot, said Yatta’s Olsen. “However, in the world of K-pop, we’ve seen companies such as HYBE handle such situations by being transparent and open with fans.”

Instead of taking a defensive approach, acknowledging the issues and showing a willingness to make improvements is key. “Ultimately, it’s about creating a dialogue where both artists and fans feel heard, which can go a long way in repairing the company’s image,” she added.

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