NewJeans loses lawsuit against Ador, ordered to stay with label

Seoul's Central District Court ruled on Thursday (Oct 30) that the exclusive contract between K-pop girl group NewJeans and music label Ador is valid, and shall run until 2029.

Ador, a subsidiary of entertainment agency Hybe, was not found to have breached its duties as a management company. The court also stated that it does not permit "attempts to escape the contract by creating the appearance of a breakdown in the relationship of trust", reported Korean news outlet Osen.

The conflict arose in April 2024, when Hybe announced that it would audit Ador and its executives, and send a notice for then-CEO Min Hee-jin to resign.

Hybe then accused Hee-jin of planning to take full control of Ador, leading to a year-long series of legal battles and disputes. On Aug 27 that year, she was dismissed despite her prominent role in leading NewJeans' creative direction and production.

The five members - made up of Minji, Danielle, Haerin, Hanni and Hyein - stood up for Hee-jin, arguing that her removal undermined their trust in Hybe and disrupted their artistic activities. They also accused Ador of bullying, harassment and subterfuge, ultimately requesting an early termination from their contract with Ador.

In a now-deleted livestream, the quintet alleged that Hybe had been mistreating them in "uncomfortable and scary ways that make no sense" and that Hee-jin protected them against "subtle bullying".

Danielle, 19, said that their former CEO was "irreplaceable" and "integral" to the group's identity, and expressed hope that Hybe would stop harassing the 44-year-old.

"Honestly, I pity her so much and I just see Hybe as an inhumane company."

However, the court found that these reasons do not constitute grounds for contract termination. Judge Jung Hoe-il added that even after Hee-jin's dismissal, she can still participate in NewJeans' activities as a producer or outside director.

"The position of CEO was not essential for her to perform her [producing] duties," he remarked.

Regarding trust, it was also concluded that the relationship between NewJeans and Ador had not been sufficiently broken to justify contract dissolution.

In February, following a request for injunction by Ador, the court blocked NewJeans' attempt to rebrand as NJZ and continue independent activities. Then in May, it was ruled that each member would have to pay 1 billion won (S$910,000) for every unauthorised entertainment activity carried out.

Following Thursday's outcome, NewJeans' legal representative Shin & Kim announced the quintet are planning to appeal the court ruling immediately.

"NewJeans members respect the court's judgement, but it is impossible to return to this company and continue normal entertainment activities in the current situation where the trust relationship with Ador is completely shattered," said the counsel.

Ador stated that it has completed all preparations for NewJeans to resume its activities, including the release of a new album, and revealed its hope for the group's comeback.

The label said: "We sincerely hope this ruling, which came after a long period of reviewing the facts and various claims, will encourage the artists to calmly look back on the situation.

"Our company has completed preparations for activities, including the release of an album, and we are waiting. We will do our utmost to ensure the artists can return to their fans after holding discussions with them."

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kristy.chua@asiaone.com