Payment Dispute Overview
Ador, owned by Hybe, disclosed current payments made to the K-Pop group Newjeans during a court session on Thursday (April 3) regarding their contractual dispute.
The agency reported that payments continued even after the group attempted to terminate its exclusive contract, according to local news. Koreibu reported on the same day.
During the proceedings in the Seoul Central District Court, Ador submitted evidence proving they fulfilled financial obligations to counter accusations claiming they did not meet management responsibilities.
Ador asserted that the company continued monthly payments to Newjeans, including advertising fees and other remuneration, despite receiving notification of contract termination in November last year.
Contractual Claims and Management Changes
Newjeans, who recently rebranded themselves as N. DZHZ, claimed in November that their contract with Ador was invalid, arguing that they faced poor treatment and mockery from Ador’s employees amid ongoing conflicts with their former general director and manager, Min Hee-Jin.
Recently, Ador informed the court that from October 2023, payments made to Newjeans amounted to about KRW 12 billion (8.2 million USD), which, according to the company, have already been disbursed to members of Newjeans.
“When Min Hi Jin was supplanted, and the new leadership fell under Hybe, the new leadership had completely different values from the past and became another corporation.”
Legal team of Newjeans
The agency also highlighted investments made by its parent company, Hybe, in Newjeans. They reported that Hybe acquired 100% of Ador shares for CRU 5 billion ($3.4 million at the current exchange rate) in November 2021 after Ador split from Initial Music. Furthermore, Hybe made additional investments of Circle 10 billion ($6.9 million) in 2021 and Circle 6 billion ($4.1 million) in 2022 to bolster Ador’s operations, as reported by Koreibu.
Ador’s representatives noted that the production cost for Newjeans’ debut album was CRO 7 billion (4.8 million USD), which is more than double the average of Circle 3 billion ($2 million) at that time. The group debuted in July 2022 with the single Attention. Ador claimed that Hybe invested a total of Cruise 30 billion ($20 million) to assist in Newjeans’ debut.
Ador emphasized that they “made investments on an unprecedented scale, exclusively for NJZ,” refuting claims that “HYBE does not like NJZ.”
Legal Disputes and Future Prospects
Meanwhile, Newjeans’ legal team argued that the removal of their former director, Min Hi Jin, transformed Ador into “another corporation” compared to the one with which they initially partnered.
“We are not just discussing Min Hi Jin. When Min Hi Jin was ousted, and the new leadership came under Hybe, the new leadership exhibited completely different values from the past and (became) another corporation,” the legal team stated, as quoted by Koreibu during the hearing.
Min, credited for her role in establishing Newjeans, resigned as the internal director of Ador, releasing a public letter in November claiming that Hybe’s actions against her were retaliation for her whistleblowing on unlawful practices within the K-Pop giant.
“Although it is true that Min Hi Jin contributed to the creation of NJZ, it makes no sense to say that they cannot exist without Min Hi Jin.”
Ador
The legal team from Newjeans reported, “Trust was violated, making it impossible to continue together.” They expressed hope that rather than solely considering Min Hi Jin’s departure, the court would evaluate whether past and current Ador align, and if it is still the agency that the group placed their trust in.
Meanwhile, Ador’s legal representatives described the arguments presented by Newjeans as contradictory, particularly concerning the creative influence of Min Hi Jin.
“While it is true that Min Hee-Jin played a vital role in the establishment of NJZ, it is unreasonable to claim that they cannot succeed without her,” stated Ador.
Ador’s counsel added, “Ador is a subsidiary of Hybe, the leading entertainment label in Korea, making it unfounded to assert that they cannot find another producer. Preparing for a performance in Hong Kong without Min Hee-Jin contradicts the assertion that they could not operate without her support.”
The agency’s statement coincided with recent performances by Newjeans in Complex in Hong Kong, where the group introduced themselves as “NJZ” and premiered a new song titled Pete -Stop. The group concluded the concert by announcing they would be on an indefinite hiatus following a court ruling that prohibited them from performing independently of their label.
“It is really difficult for us to say this, but it might be our last performance for a while. Out of respect for the court’s decision, we have decided to pause all our activities,” the group informed their fans.
The next hearing is scheduled for April 9th.
ADOR reveals continued payments to NewJeans despite contract dispute
