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If you are a fan of NewJeans, you might be more than a little perplexed by all the recent events between the quintet and their record label and management company, ADOR, a subsidiary of HYBE.
In case you need a refresher, the members of NewJeans have been embroiled in a dispute with ADOR ever since it was announced that Min Heejin would step down as CEO of the label back in August. In September, the members held a surprise livestream demanding Min be reinstated as CEO, but the ask was futile. In October, Min was reappointed as an internal director of the label in a shareholder meeting, but a Korean court denied her request to be made CEO again. However, shortly after the court’s ruling and her reinstatement as internal director, Min announced she would be resigning from ADOR altogether and demanded that the label buy her company shares.
News of Min’s resignation arrived just a week after the members of NewJeans reportedly sent ADOR a 14-day notice stating, among other requests, that they would seek to terminate their exclusive contracts if Min was not reinstated as CEO of ADOR by November 27. So, is NewJeans really done with ADOR? The short answer is yes and no.
As the ultimatum deadline came to an end, the five members of NewJeans held an emergency press conference on November 28, where they announced they would terminate their contracts and leave ADOR.
“The reason we are leaving ADOR is very simple, and I think the reporters here who know our situation are also all very aware. NewJeans is an artist of ADOR, and ADOR is obligated to protect NewJeans. It is the most basic obligation that an agency has,” the group said, per a translation by Soompi. “ADOR does not have the will or ability to protect NewJeans. If we remain here, it will be a waste of our time, and our mental distress will continue. More than anything, there is nothing that we can gain in terms of our work, so the five of us think that there is no reason at all for us to remain at ADOR.”
The quintet said their contracts would be terminating as of November 29 at 12 a.m. KST and vowed to carry out all “promised and contracted activities we have scheduled already,” as well as advertisement deals, according to Soompi.
The group also claimed they had not violated their exclusive contracts and do not believe they owe any penalty fees resulting from their early termination, Soompi reported. (The members had signed a standard seven-year exclusive contract that was set to expire in 2029.)
“We did not violate our exclusive contracts, and we have never violated them. Until now, we have been putting in our full effort to carry out our activities, so we think that there is no reason for us to pay penalties. Actually, the current ADOR and HYBE violated the contracts, leading to this current situation, so we believe the current ADOR and HYBE are the ones who are responsible,” NewJeans said.
The group also expressed their desire to keep working as a team, though they warned fans they might not be able to use their current group name going forward. “We are well aware that from today we may not be able to use our current name, NewJeans; however, that doesn’t mean that we are giving up on the name at all, and we will continue to fight for NewJeans. Regardless of our name, just remember that NewJeans never dies,” Danielle said in English.
On November 29, the group released a statement doubling down on the termination announcement, Soompi reported.
“We are notifying ADOR of the termination of our contract due to their breach of contractual obligations and failure to rectify the issues within the rectification period. This termination notice is in accordance with our exclusive contract, and all five of us have signed the termination document. The notice takes effect immediately upon its delivery to ADOR on November 29, 2024. From that moment, the exclusive contract is null and void. Therefore, there is no need to file for an injunction to terminate the contract, and we are free to continue our activities from November 29, 2024,” the statement reads. “Additionally, we have faithfully fulfilled our contractual obligations as ADOR’s artists. The termination of the contract is solely due to ADOR’s breach of duty, and we are not liable for any penalties. We do not wish for anyone to be harmed by the termination of our contract. We will diligently fulfill all contractual obligations made between ADOR and other parties before our contract termination.”
So, what does ADOR say?
Though NewJeans says they have parted ways with ADOR, termination might not be as simple as it seems. “A unilateral claim that trust has been broken does not constitute valid grounds for termination of a contract,” the label said in a statement obtained by the BBC in response to the press conference. “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 company added.
As reported by Soompi, ADOR’s full statement regarding NewJeans’ contract terminations also claimed that “the exclusive contracts between ADOR and the NewJeans members remain valid. Therefore, we expect them to continue their scheduled activities ahead together with ADOR as they have until now.”
According to attorney Lee Hyungon of Saeol, a law office located in Seoul, who spoke with Korea JoongAng Daily, the contract termination is in full effect, but the ball is now in ADOR’s court.
“The contract has already been terminated by the members because they took all the legal steps of doing so,” Lee said. “What ADOR can do is now file a lawsuit asking for legal judgment on whether NewJeans’ reasons for doing so were well-grounded or not. If the court takes NewJeans’ side, then the contract was and will remain terminated. If the court decides that NewJeans was wrong to terminate the contract the way it did, then it will either be ordered to go back to ADOR or pay up to compensate the company.”
On December 5, ADOR confirmed via a press email that, on December 3, it had filed a lawsuit with the Seoul Central District Court to “confirm the validity of the exclusive contract” with NewJeans “in order to ensure its continued legal enforcement.”
“Although we did not wish to seek legal intervention with the artist, we decided that it was necessary to clarify to both the artist and all relevant stakeholders that our exclusive contract cannot be unilaterally terminated based solely on the claims of one side,” ADOR said in its statement, which was provided in English. “Above all, the decision was made to protect the trust-based relationships that have driven the growth of the K-pop industry and to preserve the very foundation of the country’s pop culture. We aim to have this clearly established in court.”
The company added: “We believe it is important to clarify any misunderstanding that the exclusive contract with the artist has been lawfully terminated, as this could lead to the artist engaging in entertainment activities in violation of the existing agreement. We also wish to prevent any unexpected damage or confusion among industry professionals as a result.”
ADOR closed the statement saying it believes “candid dialogue with the artist is essential,” claiming the company had not yet had “the opportunity for direct communication” with NewJeans.
“We will continue to make every effort to address any unnecessary misunderstandings between the artist and the company. We are committed to doing our best to ensure NewJeans can return to their loving fans with even better activities. We kindly ask for your continued support as both ADOR and the members of NewJeans work together to wisely overcome this situation,” ADOR said.
Shortly after ADOR announced the lawsuit, NewJeans responded with a statement of their own on December 6, which was provided to Herald Pop and translated by Soompi. In the statement, the band members claimed they learned about the lawsuit through media coverage and reiterated their stance on the contract termination. They also said they had “already returned profits exceeding the investment to ADOR and HYBE.”
“Our trust in ADOR and HYBE, who have repeatedly violated contract terms and failed to fulfill their duty to protect their artists, has already collapsed. According to the terms of our exclusive contracts, there is no longer any reason for us to continue working with ADOR and HYBE,” NewJeans’ statement reads. “The exclusive contract clearly states that if ADOR fails to fulfill its contractual obligations, we have the right to terminate the contract. Forcing us to work for another five years despite this breakdown in trust and contract violations is not only unreasonable but also inhumane.”
“We gave ADOR a 14-day grace period to rectify the contract violations, but ADOR failed to do so. Consequently, we notified ADOR of the contract termination in accordance with the exclusive contracts, and this termination took immediate effect,” the statement continued. “ADOR has filed a lawsuit seeking a court ruling on the legality of this termination, but this is merely a procedural step to obtain post-facto confirmation from the court. We deeply regret that ADOR has issued a statement misleading the public into believing that the contracts are still valid.”
In the statement, the members also claimed that “managers and performance directors” who are helping them carry out their commitments scheduled prior to the contract termination “are being severely harassed.”
NewJeans’ new statement arrived as the Korea Entertainment Producer’s Association (KEPA) also issued a statement deeming the group’s contract termination “irresponsible” and “deeply concerning,” claiming it was done “without concrete justification,” per The Korea Herald. KEPA’s sentiments mirrored those of the Korea Management Federation (KMF), which, on December 3, urged the members to retract the decision to terminate their contracts.
Editor’s Note: This is a developing story. It’s been updated and will continue to be updated as news breaks.
Originally Appeared on Teen Vogue
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