K-Pop Group Newjeans Ordered Back to ADOR
The South Korean court has mandated that K-Pop girl group Newjeans cease their independent activities and resume collaboration with their label, ADOR.
In a ruling made on Friday (March 21), the Central District Court of Seoul sided with Hybe and ADOR, requesting a halt to the prohibition on Newjeans (who has rebranded as N. DZHZ) from engaging in commercial ventures outside of their contract with ADOR.
Background on the Contract Dispute
Last November, Newjeans unilaterally declared their contract with ADOR invalid, citing a lack of support and ridicule from ADOR employees amid ongoing conflicts between the label and its former managing director in New York, Min Hee-Jin.
ADOR countered these claims, affirming that the contract with Newjeans remains “in full effect.”
In December, the label sought legal confirmation of their exclusive contracts with the members of Newjeans and requested a preliminary injunction to prevent the group from working independently. The court granted this request on Friday, stating that there was “insufficient evidence to support the claims made by the members.” According to Korea Joongang Daily.
In a statement sent via email to MBW, ADOR expressed gratitude for the court’s decision to grant a preliminary injunction: “We are now legally confirmed as the exclusive agency for Newjeans and are fully committed to supporting our artists moving forward.”
“This weekend, we will be present at Complexcon to ensure that the performance is showcased under the Newjeans name. We look forward to meeting with the artists to have an open dialogue at the earliest opportunity.”
“We sincerely ask for your continued support for Newjeans as they continue to grow with ADOR.”
“Thanks to our status as the exclusive agency for Newjeans, we are now legally confirmed; we are completely committed to supporting artists in the future.”
ADOR
In an Instagram post, Newjeans announced their intention to appeal the court’s decision.
“While we respect the court’s ruling, we feel the decision did not acknowledge that the trust between the members and ADOR has been irreparably damaged,” the group stated.
Newjeans faced challenges in their attempts to secure a court ban due to insufficient time to present their case.
“Many artists have found it difficult to collaborate under the pressure and retaliation related to this trial,” they added.
Industry Implications and Future Outlook
The turmoil between Newjeans and ADOR has sent shockwaves through the K-Pop industry.
“We believe that the decision did not account for the total breakdown of trust between the members and ADOR.”
Newjeans/NJZ
In February, five K-Pop trade groups issued a statement warning that if unilateral actions by Newjeans against ADOR go unchecked, it could set a dangerous precedent that could threaten the entire K-Pop industry.
They condemned the actions in Newjeans as “fakes,” describing the practice of labels and managers attempting to lure artists away from legally binding contracts.
“If such detrimental actions succeed, the entertainment management industry in Korea will collapse,” the groups stated. “This issue transcends local discussions and could allow foreign capital to infiltrate the K-Pop industry.”
This ruling represents a significant legal victory for Hybe and ADOR in their ongoing dispute with Newjeans.
In recent months, the legal battle has intensified, especially as ADOR successfully sought injunctions to prevent Newjeans from pursuing independent transactions and activities following their rebranding announcement.
During a court session on March 7, ADOR’s lawyers indicated that HYBE had invested 21 billion KRW (approximately $14.4 million) in Newjeans, asserting that each member received regulated payments totaling around 5 billion KRW (roughly $3.4 million) amidst the legal disputes.
“HYBE has injected 21 billion KRW into ADOR, and Newjeans has generated substantial revenue in 2023. It is illogical to suggest that a profit-driven company would sabotage one of its major income sources,” ADOR’s team asserted at that time.
The group previously noted their stance in December 2024, stating that continuing their relationship with ADOR would expose them to “further harm.”
In November 2024, they held a press conference where they announced their departure from ADOR, but the label maintained that their contracts remained enforceable until July 31, 2029.
Newjeans’ legal team has characterized this dispute as one centered on an alleged breach of trust, accusing Hybe of orchestrating a media campaign against the members and planning to replace them with another group.
The conflict has raised considerable concerns within South Korea’s music industry. Last month, five K-POP trade groups issued warnings, stating that if this case establishes a precedent, it could destabilize the industry.
“If attempts to duplicate success are allowed, the Korean entertainment industry will collapse,” stated the groups. “This is an issue that goes beyond domestic discussions and could allow outside capital to take control of the K-Pop industry.”
The roots of the conflict trace back to April 2024, when HYBE alleged that Min Hee-Jin, the then-CEO of ADOR and credited with the creation of Newjeans, attempted to illegally dismantle the HYBE label, which holds majority shares in ADOR. Min was replaced as CEO last summer.
The disputes surrounding Newjeans come at a challenging time for HYBE. The K-Pop giant recently announced that it transitioned to a net loss of 3.38 billion KRW ($2.48 million) in 2024, a stark contrast to a net profit of 183.45 billion KRW in 2023, driven by rising costs and vulnerabilities in its music segment.
HYBE attributed the downturn in profitability to a temporary gap due to BTS, with the group now accounting for less than 20% of the company’s revenue in 2024, down from 95% at its peak.
A separate trial focused on the validity of Newjeans’ contract termination is set for April 3, which will play a crucial role in determining the future course of both K-Pop and the ADOR group.
In comments on their Instagram regarding the current court case and the legitimacy of their contract with ADOR, the group stated: “Unlike the trial procedure, the main lawsuit can utilize civil process legislation more freely to gather necessary evidence, so we are optimistic this will substantially strengthen our case.”
Court in South Korea blocks NewJeans from leaving HYBE-owned label ADOR
