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K-pop band NewJeans attends the Billboard Women in Music Awards in the US last March © Mario Anzuoni/Reuters

Shares of Hybe, South Korea’s leading K-pop agency, fell nearly 5 per cent on Friday morning as its popular idol group NewJeans plans to break up with the music powerhouse in a move that could spark a legal dispute.

The band said on Thursday night that they will end their exclusive contract with Ador, an affiliate of Hybe, due to the management agency’s alleged breach of contract. The contract was supposed to endure until 2029.

The decision comes after months-long disputes between Min Hee-jin, the producer of the idol group and the former chief executive of Ador, and Hybe, who accused Min of trying to seize control of the label.

Min has denied the accusations and Ador said there was no breach of contract.

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