SEOUL — The five-member girl band announced their departure from Ador, a subsidiary of powerhouse label Hybe, in a late-night press conference held on Thursday.
Ador however has said its contract with NewJeans still stands, as the agency has not violated any terms.
This dispute is the latest development in a long-running conflict between former NewJeans producer Min Hee-Jin and Hybe’s chairman Bang Si-hyuk, which has made headlines in South Korea.
One of the group’s members, Hanni, has alleged that she suffered workplace harassment while working with the label.
“This is not the type of work ethic we respect and not one we want to be a part of, and to continue working under a company with no intention of protecting NewJeans would only do us harm,” Hanni said.
She added the group had faced “mistreatment, not just towards us but also including our staff”, and said the group had experienced “deliberate miscommunications and manipulation in multiple areas”.
Ador maintains that its contract with NewJeans remains valid as it has not violated its duty and has asked the group to “continue their activities” with the agency.
“A unilateral claim that trust has been broken does not constitute valid grounds for termination of a contract,” Ador said in the statement after the group’s announcement.
“We regret that the press conference on the termination of the contract took place without sufficient consideration, and even before we gave our response to the demand letter,” the agency said.
NewJeans said they would like to work with Min, the group’s former mastermind who left Ador in August following accusations that she had planned to split from Hybe, taking NewJeans with her.
This would have made NewJeans and Ador independent of Hybe. Min has denied the accusations against her.
She has previously accused Hybe of launching another girl group, Illit, that was copying NewJeans’ music and appearance.
On 13 November, NewJeans filed a legal notice to Ador demanding the company resolve breaches of their exclusive contracts within 14 days.
They said that failure to meet their demands would result in the termination of their contracts.
The group has asked for an apology for a comment allegedly made by an executive at Belift Lab, another subsidiary of Hybe, and accused the company of workplace bullying. They have also asked for the immediate reinstatement of Min.
They added that they would fulfil their contractual obligations, but at the conference warned their fans they might not be able to use the band’s name after the contract terminates.
Prior to the NewJeans’ announcement, the band were committed to a seven-year contract, which runs out in 2029.
The contract includes a clause specifying that parties can unilaterally terminate the contract if the other has violated its duty. However, the matter is likely to go to court as both sides do not agree. In such a scenario, a judge would decide if the contract can be terminated and if one side owes the other any damages.
In October, the K-pop news site Koreaboo estimated that the members would have to pay about 300bn South Korean Won (about £170m) to terminate the contract early.
But group singer Haerin said it made “no sense” that the group would be liable to pay a contract breach fee.
“We never broke any rules,” Haerin said. “We did nothing but try our best — they are the ones at fault. Hybe and Ador are the ones responsible.”
Ador said it had not “violated” the terms of the contract, adding that it “respectfully requests that the group continue its collaboration with Ador on upcoming activities”.
“Despite multiple requests for meetings with the artists, our efforts have not been successful. We hope the members will now be willing to engage in an open and candid discussion,” it said, referring to NewJeans.
The group has been embroiled in a year-long controversy with audits and emotional accusations making South Korean headlines.
In October, a member of the group, Hanni, 20, testified at the Labour Committee of South Korea’s National Assembly at a hearing about workplace harassment.
She alleged that entertainment agency Hybe had deliberately undermined her band, and accused senior managers of deliberately ignoring her.
Following several incidents, she said: “I came to the realisation that this wasn’t just a feeling. I was honestly convinced that the company hated us.”
Hybe shares were trading around 3% lower in Friday morning trading in Seoul.
NewJeans made its debut in 2022 and is among Hybe’s most successful K-pop groups, along with BTS.
With slick pop hits including Super Shy and OMG, NewJeans were the eighth biggest-selling act in the world last year, and were nominated for best group at this year’s MTV Awards.
Formed by Ador in 2022, its five members — Minji, Hanni, Danielle, Haerin and Hyein — range in age from 16 to 20. — BBC