A court in Seoul has rejected claims by K-pop group NewJeans that their record label violated contractual obligations, ruling that the group remains bound to their exclusive agreement with HYBE-owned ADOR.
That’s according to local news outlets out of South Korea, which reported that the Seoul Central District Court on Thursday (October 30) found that ADOR’s removal of former CEO Min Hee-jin did not breach the contract signed in April 2022.
The decision marks a setback for NewJeans, which announced their contract termination in November 2024 and attempted to rebrand under the name NJZ.
The court wrote, as reported by The Korea Herald: “It is difficult to conclude that ADOR breached the exclusive contract solely on the grounds of Min Hee-jin’s dismissal.”
The dispute centers on Min’s dismissal from ADOR in August 2024. NewJeans argued that her removal created a “management vacuum” and destroyed the trust necessary for their working relationship. The court disagreed.
The court wrote: “The fact that Min was removed from her position as CEO does not in itself mean that a managerial vacuum was created or that Ador became incapable of fulfilling its contractual obligations.”
“The fact that Min was removed from her position as CEO does not in itself mean that a managerial vacuum was created or that Ador became incapable of fulfilling its contractual obligations.”
Seoul Central District Court
“The members’ personal trust in Min alone does not establish that guaranteeing her CEO position was a fundamental obligation under the exclusive contract.”
After Min’s dismissal, ADOR offered her a revised contract and asked her to continue producing for NewJeans, Korea Herald reported, citing the court’s ruling. Min declined and resigned from her position as internal director.
The court also dismissed NewJeans’ claims that leaked trainee videos and alleged bullying comments by a HYBE official toward member Hanni constituted contract breaches. It further rejected arguments that Min’s public campaign against ADOR and HYBE was intended to protect the group, stating her actions weren’t directly linked to the members’ interests.
The court wrote: “It cannot be viewed that Min Hee-jin’s actions were for the purpose of safeguarding the group.”
The court had previously granted ADOR’s request for injunctions preventing the members from pursuing independent work. In February, NewJeans attempted to continue performing under the name NJZ, but the court blocked those activities. Subsequent appeals were dismissed.
The latest ruling also approved indirect compulsory execution measures, requiring each member to pay 1 billion South Korean won ($699,000) to ADOR for each violation if they engage in entertainment activities without company approval. NewJeans has remained inactive since the legal battle began.
“We sincerely hope that today’s judgment, which comes after long-term verification of various claims and facts and reaffirms prior rulings, will serve as an opportunity for the artists to calmly reflect on this matter.”
Ador
Welcoming the decision, HYBE’s ADOR said in a statement issued to MBW: “The Korean court ruled in the lawsuit confirming the validity of the exclusive contract between ADOR and our artist NewJeans, affirming that the exclusive contract between both parties remains valid.
“The court determined that ADOR did not violate any of its duties as a management agency, and that attempts to breach the exclusive contract by creating the appearance of a broken trust relationship should not be permitted. We express our deep gratitude for the court’s decision.”
ADOR added: “Since NewJeans claimed unilateral termination of the contract last November, we have cautiously watched a series of processes with a heavy heart and responded accordingly. This included the main lawsuit, an injunction application to prevent market confusion, the court granting that injunction, the artist’s immediate appeal, and the court’s decision to dismiss that appeal. For a period of nearly a year, the courts have repeatedly ruled in various related lawsuits that the label holds the position of management agency under the exclusive contract, and that the artist must engage in entertainment activities along with us.
“We sincerely hope that today’s judgment, which comes after long-term verification of various claims and facts and reaffirms prior rulings, will serve as an opportunity for the artists to calmly reflect on this matter.
“ADOR is committed to re-emphasizing its role and responsibilities as NewJeans’ management agency. As we stated during the trial, we have completed preparations for the artist’s activities, including the release of a studio album, and are waiting. We will do our utmost to return to the fans through discussions with the artist.”
In July, the group wrote in a petition cited by their lawyers: “Telling us to return to ADOR and HYBE is like telling the victim of school bullying to return to the same school and endure it.”
The group also likened the situation to “a mother who raised us being kicked out, while the abusive father tells us to come back, promising to bring in a better mother,” according to the report.
However, the lawyers said at the time that the NewJeans members are still open for reconciliation under specific conditions.
ADOR also welcomed the latest verdict, telling Chosun Biz: “We sincerely hope that today’s result, where various claims and factual relationships have been verified over a long period and a ruling with the same intent has been made once again, will serve as an opportunity for the artists to calmly reflect on this matter. We deeply appreciate the court’s decision.”
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