Legal battle over NewJeans’ contract dispute revisits same arguments

NewJeans members respond to reporters’ questions as they leave the Seoul Central District Court. Image: Yonhap via The Korea Herald

The ongoing legal battle between NewJeans, who recently rebranded as NJZ, and their former agency ADOR played out in court again Friday, with both sides reiterating their previous claims.

NewJeans accused ADOR of mistreatment and discrimination, while the South Korean agency insisted the members unlawfully terminated their exclusive contracts despite receiving substantial support from the agency.

The Seoul Central District Court held a hearing on the label’s injunction request in January to maintain its management rights over the girl group and prevent the members from independently signing advertising contracts.

The K-pop act members terminated their contracts with ADOR in November, citing the agency’s breach of trust through discriminatory practices.

It recently expanded the request to include a complete ban on music and entertainment activities after NewJeans announced their new name in February and an upcoming performance at ComplexCon Hong Kong later this month.

ADOR says NewJeans’ success built on HYBE’s investment

The agency emphasized that Hybe’s extensive financial and strategic backing made NewJeans’ rise possible. HYBE is the parent company of ADOR.

“More than 50 staff members — including stylists, choreographers, video directors, and managers — were dedicated exclusively to NewJeans’ success from their trainee days,” its lawyers said. “HYBE invested 21 billion won ($14.5 million) in the label in two separate rounds, an unprecedented amount for a single group.”

Regarding NewJeans’ unilateral termination of their contract, it refuted claims of mistreatment.

NewJeans spreaks during a press conference held in Seoul to announce their contract termination with ADOR. Image: Newsis via TheKoreaHerald

NewJeans speaks during a press conference held in Seoul to announce their contract termination with ADOR. Image: Newsis via The Korea Herald

“The members argued that ‘HYBE dislikes them’ and ‘discriminated against them,’ but these allegations are baseless,” its lawyers said. “It invested 21 billion won into the agency, and NewJeans has been generating significant revenue since 2023. It defies logic to suggest that a profit-driven company would sabotage one of its biggest earners.”

ADOR also accused the group of violating their exclusive contracts by announcing a new team name, signing with another agency, and preparing to release new music this month. The agency insists that their contracts remain valid until July 31, 2029.

NewJeans claims ‘irreparable loss of trust’

NewJeans’ legal representatives centered their argument on an alleged breach of trust, saying that ADOR and HYBE’s actions made it impossible for them to continue under the label.

“Its extensive media play (against NewJeans), its plans to replace NJZ with a new group, the ILLIT plagiarism controversy, and ADOR’s collaboration with Dolphiners Film — none of these incidents happened to other HYBE artists,” NewJeans’ lawyers said.

They further accused the corporation of disregarding artistic integrity and only prioritizing financial gains.

“HYBE believes that as long as they provide proper financial settlements and allow promotional activities, they have fulfilled their obligations. They fail to grasp the creative process behind an artist’s identity,” the legal representatives said.

Is HYBE Chairman Bang Si-hyuk really ignoring NewJeans?

(From left) HYBE chairman Bang Si-hyuk and NewJeans. Images: FILE PHOTOS

NewJeans members also claimed they were deliberately pushed aside within its artist lineup.

“The core issue here is that HYBE and ADOR continuously sidelined and ostracized NJZ, intending to replace them with another group,” the members said. “Ador is now demanding that we remain under their control until the court rules on contract termination. This essentially forces us into a ‘slave contract’ where we are bound to an agency that has already abandoned us.”

Legal battle continues

On Thursday, ADOR expanded the injunction filing to include a complete ban on music and entertainment activities.

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The court’s final decision on the injunction is pending, while a separate trial on the validity of NewJeans’ contract with ADOR is scheduled for April 3 at the Seoul Central District Court.